All right, everyone! We have a new filing. Regulation NMS.
300 pages long it's going to take me a minute but this is a joint filing originally filed in 2020
exchanges affected are CEBO BYX, CEBO BZX, CEBO EDGA, CEBO EDGX, Investors Exchange,
Long-term Stock Exchange, MEMX, Nasdaq BX, Nasdaq ISE, Nasdaq PHLX, Nasdaq Stock Market,
New York Stock Exchange, New York Stock Exchange American, Chicago, and National.
This is not the Consolidated Audit Trail. This is just an order creating
a joint industry plan for a national market system plan regarding consolidated equity market data now
this is holy crap let me just tell you the reason I'm sharing this I'm not anywhere
near done with this it's 300 pages long but i am on page four I think and I'm already jacked
so much i had to share this with you okay so basically affects most of the lit exchanges
this is the background here filed august 11th originally august 11th 2020 jointly filed by
all the exchanges aforementioned in the previous slide October 13 2020 published for comment on the
fed register January 11 2021 the sec instituted proceedings to approve or disapprove august 6
2021 sec approves the ct plan wait i didn't follow that right [ __ ] April 8th 2021 the sec extends
deadline to June 10th 2021 sorry June 9th they further extended to august 9th and then august
6th today the sec approves the ct plan and the next step would be for it to be published on the
fed register for public inspection that's to be determined the date of implementation equals the
day it shows up on that recently published section of the fed register unless otherwise noted in the
filing which I'm not sure because I haven't dig in dug in that far yet now I've already done the last
part here so let's go ahead and take a look this is the overall overall filing structure so
each one of these is a section within the filing that discusses what this is about the most notable
is implementation of the ct plan we want to know when it's going to be implemented definitions
define a lot of [ __ ] in here I'm sure there's a lot of terminology that will need to be defined
um dissolution and termination capital contributions regulatory matters exculpate
exculpation and indemnification advanced payment appearance as a witness non-exclusivity of rights
a lot of juicy [ __ ] in here so but I wanted to share with you so far what i've found
or what I've seen in this filing and just want you to go through this with me it's pretty crazy
so basically the commission's authority to modify this plan okay so they basically had
a bunch of people when they just approved this a bunch of commenters who were delaying
this and delaying this and delaying this over and over again like we've seen with the cat
this time we got a lot of comments that i guess they're fed up with this crap also and the set got
like bombarded with comments basically it says right here one commenter urges the commission not
to make substantial modifications to the ct plan oh yeah so basically what happened is the the sec
came into this plan and they made changes the sec themselves
has made changes to this not the self-regulatory organizations the sec the sec has gone in here and
like overwritten some of these rules that they've written and made changes and they didn't even
notify the sros about it and they were pissed so let's read on several commenters argue that
before modifying the ct plan the commission should publish notice for public comment
of the specified changes it proposes one commenter urges the commission not to make substantial
modifications to the ct plan in an order purporting to approve the plan without providing
opportunity for public comment asserting that the public comment is required by the administrative
procedure act uh so they're getting butt hurt and they're saying oh but you have to follow the apa
okay and then uh supranote 17 says to reference a letter if you wanted to look at that
go right ahead basically in that letter the commenter argues that any changes to the
governance of the sip operating committees should be made through amendments to the current plans
as the commission explained in the governance order one of its goals was to reduce redundancies
of inefficiencies and inconsistencies among the three existing equity data plans
by replacing them with a new single plan so i guess the sex said you know what f you you're
taking too long and Gary Gensler's like eating his spinach because he's about ready to you know
take these mofos down is what this is looking like one commenter asserts that the notice provides an
insufficient opportunity for comment arguing that the commission has not stated its position
regarding any of the 62 separate topics of interest identified in the notice or or proposed
any specific textual changes upon which the sros and other persons can meaningfully comment
the commenter further argues that this approach does not comply with
the notice and common obligations under the act rule 608 you know what the sex reply was
the commission does not agree that it is required to publish notice for the specified purpose plan
language in order to modify a proposed nms plan under rule 608 the commission can wipe
these nuts on your face pretty much is what they're saying uh so that's that's great
if it says if it finds that such plan is necessary or appropriate in the public interest see I'm
telling you guys this it's us it's all the eyes on it and this working we're seeing it work
we've only been stalling out for this long because they have no other options it's either
stalling out or you know what I mean it's like it's playing chess it's like you can go in for
the checkmate you know what I mean or you can like f up and then now you're looking at a stalemate
basically if if we find it's necessary
or appropriate in public interest we're going to go ahead and say fu we're going to go ahead and
remove these you know impediments we're going to go ahead and protect investors and mean it
this time hopefully we'll see i've read that in every filing this this [ __ ] sentence of for
the protection of investors in the maintenance of fair and orderly markets yeah i haven't seen
it yet hopefully this is the first time but it gets better so then they go on to describe their
authority to modify this plan and they say the recitals of the ct plans set forth
in this procedural history of the cd plan the proposed schedule for implementation of
the ct plan and the SRO's acknowledgement of their regulatory obligations with respect to the ct plan
as discussed below the commission is modifying certain of the recitals with respect to the
timeline for implementation of the ct plan as well as the recital of the regulatory obligations
of the sros to the ct plan so they're saying not only are we going to modify the obligations put
forth in this plan but we're also going to modify the timeline of it being implemented and by the
way a recital all that is is an uh enumeration or listing of connected names facts or elements it's
not like a dance recital we're not going to a dance recital so the recitals of the ct plans
set forth in the procedural history of the ct plan well I that's the duplicate paragraph I got
so excited i duplicated the same paragraph hold on oh hold on hold on it's a long one it's a long one
okay i guess that slide wasn't didn't need to be that big okay cool anywho
so basically they went on to make some changes to the implementation plan
or the you know the the timeline and this is what they said
so the self-regulatory organizations that's what the sro is right they're the ones that get to make
these rules like they're the ones that do the filings when you see an sro proposal the you
know the people that are doing the corrupting activities are the ones making these rules so
this time they put their plan forth and instead of the sec approving it they said no no hold
on let me look at this so this was their plan right this was their plan that they implemented
they said we want the operative date we're going to go and define that as the first day of the
month that is at least 90 days after the latest of five specified tasks have been accomplished
that their voting representatives and non-sro voting representatives of the
operating committee have been selected like let us select our committee people first
let us establish fees and make sure they're effective as an amendment we need to write a whole
amendment to this plan they're basically saying we want to delay this as much as freaking possible
because we don't want this plan to be approved and they also said agreements have been entered
with the processors currently performing under the CT plan the consolidated uh CTA plan [ __ ] what
does that mean I will get back to that and the utp plan those are all I know data fees I just
can't think of the acronym name off the top of my head so anyways this was their plan they want
all these these conditions met before the sec approves it you know what the sec response was
well in the notice the commission sought comment on whether the timing provisions might result in
undue delay so they took this idea put it out for public comment and this is what people said
in response to the notice the commission received a number of comments supporting changes to the
ct plan to establish specified time frames with within which the requisite actions must
occur for the ct plan to be effective those are probably the corrupting actors these
commenters expressed concern that the absence of specified deadlines in the ct plan will cause the
sros to unduly delay its implementation okay that's good number one they want it they want
specified time frame sorry so they're saying if without specified time frames these sros
are going to unduly delay this implementation like we saw with the cat specifically one
commenter argues that it would be nonsensical to rely on the self-regulatory organizations many
of whom have no incentive to change the current governance structure to take actions on a timely
basis to ensure the implementation of the plan another commenter acknowledges that the sros
will have significant control and influence over how and when the necessary steps to implement the
ct plan are completed and asserts that without a reasonable deadline or target date or completion
there is a significant risk that implementation will be delayed indefinitely
undermining important public policy goals another commenter similarly argued that the ct plan fails
to meet the core objective objectives of the commission's governance order because the required
number of steps would delay full implementation of the plan for an indefinite period possibly years
one commenter acknowledges that there will be some work in implementing the ct plan but states that
the lack of deadlines and the number of conditions associated with the effective and operative dates
are very concerning another commenter recommends that the commission closely monitor
implementation and potentially penalize the sros for unwarranted delays another
one points to the national market system plan governing the consolidated audit trail
the cat plan remember the cat it literally just got delayed again they brought that up
as a cautionary tale resulting from a lack of deadlines or accountability in meeting
them while another commenter favorably promotes the cat nms plan's use of target deadlines for
critical implementation deadlines quarterly progress reports and financial incentives
two commenters recommended making the effective date of the plan the date of the commission's
approval order they're like just go ahead and prove it today we want it done now
without regard to the proposed delay for the administrative step of filing the llc agreement
with Delaware one commenter does not express a view about the propriety uh propriety of a
10-day requirement but recommends that the sros be required to file the llc certificate of formation
with Delaware as promptly as the commission determines as practicable following commission
approval of the plan they want this [ __ ] done people are sick of this crap
so I mean they just go on and on and on all of
these are comments like I've never seen so many comments piled in here
and it's all against the sros and you know what the sex response was to all this
while the commission recognizes the challenges associated with completing the actions required
for the implementation of the ct plan the commission also believes that the sros have
the relevant expertise and experience both with respect to operating nms plans generally
and with respect to dissemination of equity market data specifically to implement the ct plan get
wrecked get wrecked oh I can't wait to break this one down sex going for the jugular
stay jacked y'all I'll link this below