Notice2024-23657
Joint Industry Plan; Notice of Designation of a Longer Period for Commission Action on Proposed Amendments to the National Market System Plan Governing the Consolidated Audit Trail Regarding Cost Savings Measures
Primary source
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Published
October 15, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 199 (Tuesday, October 15, 2024)</title>
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[Federal Register Volume 89, Number 199 (Tuesday, October 15, 2024)]
[Notices]
[Pages 83068-83069]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-23657]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101277; File No. 4-698]
Joint Industry Plan; Notice of Designation of a Longer Period for
Commission Action on Proposed Amendments to the National Market System
Plan Governing the Consolidated Audit Trail Regarding Cost Savings
Measures
October 8, 2024.
I. Introduction
On March 27, 2024, and pursuant to Section 11A(a)(3) of the
Securities Exchange Act of 1934 (the ``Exchange Act'') \1\ and Rule 608
of Regulation NMS thereunder,\2\ BOX Exchange LLC, Cboe BYX Exchange,
Inc., Cboe BZX Exchange, Inc., Cboe C2 Exchange, Inc., Cboe EDGA
Exchange, Inc., Cboe EDGX Exchange, Inc., Cboe Exchange, Inc., The
Financial Industry Regulatory Authority, Inc., Investors' Exchange LLC,
Long-Term Stock Exchange, Inc., MEMX LLC, Miami International
Securities Exchange LLC, MIAX Emerald, LLC, MIAX PEARL, LLC, Nasdaq BX,
Inc., Nasdaq GEMX, LLC, Nasdaq ISE, LLC, Nasdaq MRX, LLC, Nasdaq PHLX
LLC, The Nasdaq Stock Market LLC, New York Stock Exchange LLC, NYSE
American LLC, NYSE Arca, Inc., NYSE Chicago, Inc., and NYSE National,
Inc. (``the Participants'') filed with the Securities and Exchange
Commission (the ``Commission'' or the ``SEC'') proposed amendments to
the national market system plan governing the consolidated audit trail
(the ``CAT NMS Plan'').\3\ These proposed amendments (the ``Proposal'')
were designed to implement certain costs saving measures,\4\ including:
(A) provisions that would change processing, query, and storage
requirements for options market maker quotes in listed options; (B)
provisions that would permit the Plan Processor \5\ to move raw
unprocessed data and interim operational copies of CAT Data \6\ older
than 15 days to what the Participants described as a more cost-
effective storage tier; (C) provisions that would permit the Plan
Processor to provide an interim CAT-Order-ID \7\ to regulatory users on
an ``as requested'' basis, rather than on a daily basis; and (D)
provisions that would codify and expand exemptive relief recently
provided by the Commission related to certain recordkeeping and data
retention requirements for industry testing data. The Proposal was
published for comment in the Federal Register on April 16, 2024.\8\
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\1\ 15 U.S.C 78k-1(a)(3).
\2\ 17 CFR 242.608.
\3\ In July 2012, the Commission adopted Rule 613 of Regulation
NMS, which required the Participants to jointly develop and submit
to the Commission a national market system plan to create,
implement, and maintain a consolidated audit trail (the ``CAT'').
See Securities Exchange Act Release No. 67457 (July 18, 2012), 77 FR
45722 (Aug. 1, 2012 (``Rule 613 Adopting Release''); 17 CFR 242.613.
On November 15, 2016, the Commission approved the CAT NMS Plan. See
Securities Exchange Act Release No. 78318 (Nov. 15, 2016), 81 FR
84696 (Nov. 23, 2016) (``CAT NMS Plan Approval Order''). The CAT NMS
Plan is Exhibit A to the CAT NMS Plan Approval Order. See CAT NMS
Plan Approval Order, at 84943-85034.
\4\ See Letter from Brandon Becker, CAT NMS Plan Operating
Committee Chair, to Vanessa Countryman, Secretary, Commission, dated
March 27, 2024, available at <a href="https://catnmsplan.com/sites/default/files/2024-03/03.27.24-Proposed-CAT-NMS-Plan-Amendment-Cost-Savings-Amendment.pdf">https://catnmsplan.com/sites/default/files/2024-03/03.27.24-Proposed-CAT-NMS-Plan-Amendment-Cost-Savings-Amendment.pdf</a>. MIAX Sapphire, LLC was not a Participant to the CAT
NMS Plan when the Proposal was originally filed, but the
Participants filed an immediately-effective amendment to the CAT NMS
Plan on July 30, 2024 to add MIAX Sapphire, LLC as a Participant.
See Securities Exchange Act Release No. 100631 (July 31, 2024), 89
FR 64011 (Aug. 6, 2024).
\5\ The ``Plan Processor'' is ``the Initial Plan Processor or
any other Person selected by the Operating Committee pursuant to SEC
Rule 613 and Sections 4.3(b)(i) and 6.1, and with regard to the
Initial Plan Processor, the Selection Plan, to perform the CAT
processing functions required by SEC Rule 613 and set forth in this
Agreement.'' See CAT NMS Plan, supra note 3, at Section 1.1.
\6\ ``CAT Data'' is ``data derived from Participant Data,
Industry Member Data, SIP Data, and such other data as the Operating
Committee may designate as `CAT Data' from time to time.'' See id.
\7\ The ``CAT-Order-ID'' is ``a unique order identifier or
series of unique order identifiers that allows the central
repository to efficiently and accurately link all reportable events
for an order, and all orders that result from the aggregation or
disaggregation of such order.'' See 17 CFR 242.613(j)(1); see also
CAT NMS Plan, supra note 3, at Section 1.1 (``'CAT-Order-ID' has the
same meaning provided in SEC Rule 613(j)(1).'').
\8\ See Securities Exchange Act Release No. 99938 (Apr. 10,
2024), 89 FR 26983 (Apr. 16, 2024) (``Notice''). Comments received
in response to the Notice can be found on the Commission's website
at <a href="https://www.sec.gov/comments/4-698/4-698-d.htm">https://www.sec.gov/comments/4-698/4-698-d.htm</a>.
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On July 15, 2024, the Commission instituted proceedings pursuant to
Rule 608(b)(2)(i) of Regulation NMS,\9\ to determine whether to
disapprove the Proposal or to approve the Proposal with any changes or
subject to any conditions the Commission deems necessary or appropriate
after considering public comment (the ``OIP'').\10\ The Participants
subsequently submitted an amendment to their Proposal on September 20,
2024 (the ``Amendment''), which, among other things, withdrew the
proposed amendments that would have permitted the Plan Processor to
provide an interim CAT-Order-ID to regulatory users on an ``as
requested'' basis, rather than on a daily basis.\11\ The Amendment was
published for comment in the Federal Register on October 7, 2024.\12\
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\9\ 17 CFR 242.608(b)(2)(i).
\10\ See Securities Exchange Act Release No. 100530 (July 15,
2024), 89 FR 58838 (July 19, 2024).
\11\ Letter from Brandon Becker, CAT NMS Plan Operating
Committee Chair, to Vanessa Countryman, Secretary, Commission, dated
Sept. 20, 2024, available at <a href="https://www.sec.gov/comments/4-698/4698-522995-1501362.pdf">https://www.sec.gov/comments/4-698/4698-522995-1501362.pdf</a>.
\12\ See Securities Exchange Act Release No. 101225 (Oct. 1,
2024), 89 FR 81120 (Oct. 7, 2024).
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Rule 608(b)(2)(i) of Regulation NMS provides that proceedings, once
instituted, shall be concluded within 180 days of the date of the
publication of notice of an amendment to an existing national market
system plan and that the time for conclusion of such proceedings may be
extended for up to 60 days (up to 240 days from the date of notice
publication) if the Commission determines that a longer period is
appropriate and publishes the reasons for such determination or if the
plan
[[Page 83069]]
participants consent to a longer period.\13\ The 180th day after
publication of the Notice for the Proposal is October 11, 2024. The
Commission is extending this 180-day period.
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\13\ 17 CFR 242.608(b)(2)(i).
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The Commission finds that it is appropriate to designate a longer
period within which to conclude proceedings regarding the Proposal, as
modified by the recently-filed Amendment, so that the Commission has
sufficient time to consider the changes set forth in the Amendment and
any comments that might be received on the Amendment. Accordingly,
pursuant to Rule 608(b)(2)(i) of Regulation NMS,\14\ the Commission
designates December 12, 2024, as the date by which the Commission shall
conclude the proceedings to determine whether to approve or disapprove
the Proposal, as modified by the Amendment.
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\14\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(85).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-23657 Filed 10-11-24; 8:45 am]
BILLING CODE 8011-01-P
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