

[Federal Register: August 29, 2007 (Volume 72, Number 167)]
[Notices]               
[Page 49747-49748]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29au07-99]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56304; File No. SR-CTA-2007-01]

 
Consolidated Tape Association; Order Approving the Ninth Charges 
Amendment to the Second Restatement of the Consolidated Tape 
Association Plan

August 22, 2007.

I. Introduction

    On July 20, 2007, the Consolidated Tape Association (``CTA'') Plan 
Participants (``Participants'') \1\ filed with the Securities and 
Exchange Commission (``SEC'' or ``Commission'') pursuant to Section 11A 
of the Securities Exchange Act of 1934 (``Act''),\2\ and Rule 608 
thereunder,\3\ a proposal to amend the Second Restatement of the CTA 
Plan (the ``Plan'') \4\ to impose a limit on the maximum amount that 
any entity is required to pay for any calendar month's charge for 
broadcast, cable or satellite television distribution of a Network A 
ticker. The proposed Plan amendment was published for comment in the 
Federal Register on August 1, 2007.\5\ No comment letters were received 
in response to the Notice. This order approves the proposed Plan 
amendment.
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    \1\ Each Participant executed the proposed amendment. The 
Participants are the American Stock Exchange LLC; Boston Stock 
Exchange, Inc.; Chicago Board Options Exchange, Inc.; Chicago Stock 
Exchange, Inc.; International Securities Exchange LLC; The NASDAQ 
Stock Market LLC; National Association of Securities Dealers, Inc.; 
National Stock Exchange, Inc.; New York Stock Exchange LLC; NYSE 
Arca, Inc.; and Philadelphia Stock Exchange, Inc.
    \2\ 15 U.S.C. 78k-1.
    \3\ 17 CFR 242.608.
    \4\ The proposal was originally filed on June 19, 2007. However, 
it was refiled on July 20, 2007, to reflect technical revisions made 
in response to the Commission's staff comments.
    \5\ See Securities Exchange Act Release No. 56134 (July 25, 
2007), 72 FR 42139 (``Notice'').
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II. Description of the Proposal

    The Plan currently imposes a charge of $2.00 for every 1,000 
households reached on broadcast, cable and satellite television 
distribution of a Network A ticker (the ``Broadcast Charge''). A 
minimum monthly vendor payment of $2,000 applies. CTA permits prorating 
for those who broadcast the data for less than the entire business day, 
based upon the number of minutes that the vendor displays the real-time 
ticker, divided by the number of minutes the primary market is open for 
trading (currently 390 minutes).
    CTA proposes to cap the Broadcast Charge by providing that no 
entity is required to pay more than the ``Television Ticker Maximum'' 
for any calendar month. For months falling in calendar year 2007, the 
Participants propose that the monthly ``Television Ticker Maximum'' 
shall be $150,000. For each subsequent calendar year, the monthly 
Television Ticker Maximum would increase by the ``Annual Increase 
Amount.'' \6\ The CTA Participants propose to apply the monthly maximum 
amount that any entity is required to pay for any calendar month's 
Broadcast Charge retroactively to May 1, 2007.
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    \6\ The ``Annual Increase Amount'' is an amount equal to the 
percentage increase in the annual composite share volume for the 
preceding calendar year, subject to a maximum annual increase of 
five percent. The ``Annual Increase Amount'' is the same adjustment 
factor that the Network A rate schedule has long applied to the 
monthly broker-dealer enterprise fee.
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III. Discussion

    The Commission finds that the proposed CTA Plan amendment is 
consistent with the Act and the rules and regulations thereunder.\7\ 
Specifically, the Commission finds that the amendment is consistent 
with Rule 608(b)(2) \8\ of the Act in that it is necessary for the 
protection of investors, the maintenance of fair and orderly markets, 
and to remove impediments to a national market system. The Commission 
also finds that the proposed cap on Broadcast Charges is fair and 
reasonable and provides for an equitable allocation of dues, fees, and 
other charges among vendors, data recipients and other persons using 
CTA Network A facilities.
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    \7\ The Commission has considered the proposed amendment's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
    \8\ 17 CFR 242.608 (b)(2).
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    The proposed amendment would reduce the amount of fees paid by some 
entities that broadcast data to customers and result in a reduction of 
costs for

[[Page 49748]]

investors. Thus, the proposed amendment is consistent with, and would 
further, one of the principal objectives for the national market system 
set forth in Section 11A(a)(1)(C)(iii) \9\ of the Act--increasing the 
availability of market information to broker-dealers and investors.
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    \9\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 11A of the Act,\10\ 
and the rules thereunder, that the proposed amendment to the CTA Plan 
(SR-CTA-2007-01) is approved.
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    \10\ 15 U.S.C. 78k-1.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(27).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-17080 Filed 8-28-07; 8:45 am]

BILLING CODE 8010-01-P
