Federal Register #2026-12159

SEC Notice: Proposed Amendment to CT Plan LLC Revenue Allocation Formula

This notice from the Securities and Exchange Commission (SEC) concerns a proposed amendment to the Limited Liability Company Agreement of CT Plan LLC. - The amendment seeks to revise the revenue allocation formula among CT Plan LLC Members - Specifically, it would cap the ratio of revenue distributed to each Member from quoting activity compared to trading activity at 5:1 - The cap is designed to address distortions from high quote-to-trade ratios, particularly observed at NYSE Chicago (now NYSE Texas) and Long-Term Stock Exchange (LTSE) - The Financial Industry Regulatory Authority, Inc. (FINRA) is excluded from the cap due to its unique facilities - A de minimis exception is included for Members with low total quoting and trading activity - The SEC is soliciting public comments on this regulatory proposal - No products or services are being procured; this is a regulatory notice - OEMs and vendors mentioned include: - CT Plan LLC - NYSE Chicago (now NYSE Texas) - Long-Term Stock Exchange (LTSE) - FINRA - Cboe BYX Exchange - Cboe BZX Exchange - Cboe EDGA Exchange - Cboe EDGX Exchange - Cboe Exchange, Inc.

Description

This notice announces the filing of the third amendment to the Limited Liability Company Agreement of CT Plan LLC, which proposes revisions to the revenue allocation formula among Members. The amendment aims to impose a cap on the ratio of revenue distributed to each Member attributable to quoting activity compared to trading activity, addressing distortions caused by high quote-to-trade ratios. The amendment excludes FINRA from the cap and includes a de minimis exception for Members with low total quoting and trading activity. The Securities and Exchange Commission published this notice to solicit comments on the proposed amendment.

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