[Federal Register Volume 87, Number 134 (Thursday, July 14, 2022)]
[Notices]
[Pages 42242-42243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-14983]


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SECURITIES AND EXCHANGE COMMISSION

[Securities Exchange Act of 1934: Release No. 34-95235/July 8, 2022]


In the Matter of the: Order Granting Temporary Conditional 
Exemptive Relief Pursuant to Section 36 of the Securities Exchange Act 
of 1934 (``Exchange Act'') and Rule 608(e) of Regulation NMS Under the 
Exchange Act, Relating to Certain Requirements of the National Market 
System Plan Governing the Consolidated Audit Trail; In the Matter of 
the: Order Granting Temporary Conditional Exemptive Relief Pursuant to 
Section 36 of the Exchange Act and Rule 608(e) of Regulation NMS Under 
the Exchange Act, From Section 8.1.1 and Section 8.1.2 of Appendix D of 
the National Market System Plan Governing the Consolidated Audit Trail; 
Order Denying Stay

    On December 16, 2020, the Commission issued two orders pursuant to 
Section 36 of the Exchange Act and Rule 608(e) of Regulation NMS under 
the Exchange Act: (1) an Order Granting Temporary Conditional Exemptive 
Relief Pursuant to Section 36 of the Exchange Act and Rule 608(e) of 
Regulation NMS Under the Exchange Act Relating to Certain Requirements 
of the National Market System Plan Governing the Consolidated Audit 
Trail, Release No. 34-90688 (Dec. 16, 2020) (the ``First Order''); and 
(2) an Order Granting Temporary Conditional Exemptive Relief Pursuant 
to Section 36 of the Exchange Act and Rule 608(e) of Regulation NMS 
Under the Exchange Act From Section 8.1.1 and Section 8.1.2 of Appendix 
D of the National Market System Plan Governing the Consolidated Audit 
Trail, Release No. 34-90689 (Dec. 16, 2020) (the ``Second Order'') 
(together, the ``prior Orders''). On February 14, 2021, Petitioner 
Consolidated Audit Trail, LLC (``Petitioner'' or ``CAT LLC''), on 
behalf of itself and a majority of the Participants in the National 
Market System Plan Governing the Consolidated Audit Trail (``CAT NMS 
Plan'' or ``Plan'') (together, ``Petitioners'') \1\ filed with the 
Commission the pending motions for partial stays of the prior Orders. 
That same day, Petitioners \2\ filed petitions in the U.S. Court of 
Appeals for the District of Columbia Circuit seeking review of the 
Orders. See Case Nos. 21-1065, 21-1066. Petitioners sought a partial 
stay of the prior Orders until the Commission ``had an opportunity to 
consider all the Participants' arguments and supporting evidence'' and 
``reevaluate whether the Order[s] [are] appropriate in light of that 
information,'' or, in the alternative, pending resolution of the 
petitions for judicial review. Since that time, the Participants and 
Commission staff have been engaged in ongoing discussions with the goal 
of resolving or narrowing their differences with respect to the issues 
raised in the Participants' stay motions. On January 12, 2022, the 
Participants requested that the Commission supplement the record to 
include certain additional materials prepared in connection with those 
discussions.\3\
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    \1\ The Participants joining the motion include BOX Exchange 
LLC; Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGA 
Exchange, Inc., Cboe EDGX Exchange, Inc., Cboe C2 Exchange, Inc. and 
Cboe Exchange, Inc.; Investors Exchange LLC; 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; and 
New York Stock Exchange LLC, NYSE American LLC, NYSE Arca, Inc., 
NYSE Chicago, Inc., and NYSE National, Inc. Participants FINRA and 
Long-Term Stock Exchange, Inc. did not approve the stay motions.
    \2\ The following Participants joined in the stay motions but 
did not approve the filing of a petition for judicial review: 
Investors Exchange LLC, MEMX LLC, Miami International Securities 
Exchange LLC, MIAX Emerald, LLC, and MIAX PEARL, LLC. Participants 
FINRA and Long-Term Stock Exchange, Inc. did not approve the stay 
motions or the filing of a petition for judicial review.
    \3\ See Letter from K. King, Counsel for Consolidated Audit 
Trail, LLC, Covington & Burling LLP, to Vanessa Countryman, 
Secretary, Commission (January 12, 2022).
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    On July 8, 2022, after careful review of the arguments and evidence 
proffered by the Participants, the Commission issued an Order Granting 
Temporary Conditional Exemptive Relief, Pursuant to Section 36 of the 
Exchange Act and Rule 608(e) of Regulation NMS under the Exchange Act, 
from Certain Requirements of the National Market System Plan Governing 
the Consolidated Audit Trail (the ``Third Order''), which supersedes 
the prior Orders. The Third Order clarifies certain aspects of the 
prior Orders and modifies

[[Page 42243]]

other aspects of the prior Orders in light of subsequent developments 
and/or additional information provided by the Participants. It also 
gives the Participants until July 31, 2024 to either come into 
compliance with the relevant provisions of the CAT NMS Plan or to 
develop alternative solutions that achieve the regulatory goals of Rule 
613 and the CAT NMS Plan in a more cost-effective manner. Because the 
terms of the Third Order now govern, the terms of the prior Orders are 
no longer in force, and the pending motions are moot.\4\
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    \4\ On February 14, 2021, the Participants also filed a motion 
for a protective order shielding from public disclosure certain 
documents submitted in connection with their stay motions as well as 
portions of the motions that refer to those documents, pursuant to 
SEC Rule of Practice 322. Finding that the harm resulting from 
disclosure of that material would outweigh the benefits of 
disclosure, we grant the motion for a protective order.
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    Accordingly, it is ordered that the motions for a stay of the prior 
Orders be denied as moot.

    By the Commission.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-14983 Filed 7-13-22; 8:45 am]
BILLING CODE 8011-01-P


