Amendment_0002.pdf

Amendment 0002 Department of the Treasury, Bureau of the Fiscal Service

Division of Procurement

DATE: July 08, 2019

FROM: Ryan Radcliff, Contract Specialist

SUBJECT: 2033H619R00002 Securities Liquidation

The purpose of Amendment 0002 is to answer the vendor submitted questions below and extend the closing date to

7/15/2019 @ 1300 ET.

1. Please describe your daily reporting requirements?

We currently access our brokerage account online with the ability to see Activity & Holding Reports. We do not require our broker to send us reports directly, as long as we have the ability to access our account online with available reports. If an online brokerage account would not be available to us, we would need to have current holdings and activity reports provided daily via e-mail.

2. Can you provide sample reports?

Unfortunately, we are not able to provide a sample of the reports. We would expect to be able to see current holdings, value, and transactions made in the account.

3. Will you send individual orders or simply expect that the selected vendor liquidate any long securities in your account?

o If individual orders are sent, will this be via FIX, MQ, other?

The Bureau of Fiscal Service sends an “Instructions to Liquidate” by email. No securities should be liquidated without this authorization. The Bureau of Fiscal Service provides a Point of Contact list with Authorized Ordering Officials; only the individuals on the list may authorize a liquidation.

o Should confirmations use the same connectivity option as orders (e.g. FIX)?

We have normally received confirmations through our online broker account.

o Will you be sending execution instructions with orders that we need to follow or is the expectation that the we provide best effort execution?

Normally, it is best effort execution. Occasionally, there may be orders that need to be followed.

o If you attach instructions, will you be using the our algorithms?

Please provide clarification for this question.

o Can you please provide more color around the two items below? If possible, can we have a call to discuss these to better understand your expectations?

We are not able to hold a call with one vendor at this stage in the procurement process.

With regards to the B. Same Day Turnaround Assurance Plan, what is the expectation when you hold a position which is over 100% of Average Daily Volume? It is our expectation that a reasonable effort be made to execute liquidation orders the same day they are received.

“The Contractor shall use an acceptable industry source, and comply with 17 CFR § 240.11Ac1-1 and 4, when providing quotation information on equity instruments to Fiscal Service. The broker-dealer shall conduct the appropriate level of market research effort for providing three (3) quotations for all other instruments”. In the past, there have been instruments liquidated which required our broker to find a buyer. Should we receive an instrument which is privately or not easily publicly traded we would expect our broker to have the capability to locate potential buyers and would request to obtain a minimum of 3 bids on the instrument to be liquidated when possible.

4. Can you provide examples of acceptable industry sources that comply with 17 CFR 240.11Ac1-1 and 4 for the providing quotes on equity instruments?

Attached (Attachment A) is what is known as the “Quote” Rule. We do not have an example to provide but would accept formats which could verify quote sources.

5. For the same Day turnaround assurance plan, what happens in cases of limited liquidity of if execution of the order would result in market impact?

If a potential market impacting trade could occur the contractor would need to formulate a plan with the Funds Management Branch to insure trades being made would not have such an impact. In such a situation, the contractor and the Funds Management Branch would determine whether the entire liquidation should occur on the same day.

6. Risk Mitigation Plan - Can you provide potential examples of Contractor direct ties to securities which would cause an Organizational Conflict of Interest?

An example of a potential conflict of interest would be a contractor employee liquidating a security who has a financial interest directly and predictably affected by the matter, or in which he/she knows that a person whose interest are imputed to them (spouse or minor children) has a financial interest directly and predictably affected by the matter. This is only one possible example.

All other terms and conditions remain the same

CO Initials

17 CFR Ch. II (4–1–01 Edition)§ 240.11Ac1–1 conditionally or unconditionally ex-empt any securities information proc-essor from any provision of the rules or regulations adopted under section 11A(b).

(d) Every amendment filed pursuant to this section shall constitute a ‘‘re-port’’ within the meaning of sections 17(a), 18(a) and 32(a) of the Act.

[40 FR 45424, Oct. 2, 1975]

§ 240.11Ac1–1 Dissemination of quotations.

(a) Definitions. For the purposes of this section:

(1) The term aggregate quotation size shall mean the sum of the quotation sizes of all responsible brokers or deal-ers who have communicated on any ex-change bids or offers for a covered se-curity at the same price.

(2) The term association shall mean any association of brokers and dealers registered pursuant to Section 15A of the Act (15 U.S.C. 78o–3).

(3) The terms best bid and best offer shall mean the highest priced bid and the lowest priced offer.

(4) The terms bid and offer shall mean the bid price and the offer price com-municated by an exchange member or

OTC market maker to any broker or dealer, or to any customer, at which it is willing to buy or sell one or more round lots of a covered security, as ei-ther principal or agent, but shall not include indications of interest.

(5) The term consolidated system means the consolidated transaction re-porting system, including a trans-action reporting system operating pur-suant to an effective national market system plan.

(6) The term covered security shall mean any reported security and any other security for which a transaction report, last sale data or quotation in-formation is disseminated through an automated quotation system as de-scribed in Section 3(a)(51)(A)(ii) of the

Act (15 U.S.C. 78c(a)(51)(A)(ii)).

(7) The term effective transaction re-porting plan shall have the meaning provided in § 240.11Aa3–1(a)(3).

(8) The term electronic communications network, for the purposes of § 240.11Ac1–

1(c)(5), shall mean any electronic sys-tem that widely disseminates to third parties orders entered therein by an ex-change market maker or OTC market maker, and permits such orders to be executed against in whole or in part;

except that the term electronic com-munications network shall not include:

(i) Any system that crosses multiple orders at one or more specified times at a single price set by the ECN (by al-gorithm or by any derivative pricing mechanism) and does not allow orders to be crossed or executed against di-rectly by participants outside of such times; or

(ii) Any system operated by, or on be-half of, an OTC market maker or ex-change market maker that executes customer orders primarily against the account of such market maker as prin-cipal, other than riskless principal.

(9) The term exchange market maker shall mean any member of a national securities exchange (‘‘exchange’’) who is registered as a specialist or market maker pursuant to the rules of such ex-change.

(10) The term exchange-traded security shall mean any covered security or class of covered securities listed and registered, or admitted to unlisted trading privileges, on an exchange; pro-vided, however, That securities not list-ed on any exchange that are traded pursuant to unlisted trading privileges are excluded.

(11) The term make available, when used with respect to bids, offers, quotation sizes and aggregate quotation sizes supplied to quotation vendors by an exchange or association, shall mean to provide circuit connec-tions at the premises of the exchange or association supplying such data, or at a common location determined by mutual agreement of the exchanges and associations, for the delivery of such data to quotation vendors.

(12) The term odd-lot shall mean an order for the purchase or sale of a cov-ered security in an amount less than a round lot.

(13) The term OTC market maker shall mean any dealer who holds itself out as being willing to buy from and sell to its customers, or otherwise, a covered security for its own account on a reg-ular or continuous basis otherwise than on an exchange in amounts of less than block size.

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Attachment A

Securities and Exchange Commission § 240.11Ac1–1

(14) The term plan processor shall have the meaning provided in

§ 240.11Aa3–2(a)(7).

(15) The term published aggregate quotation size shall mean the aggregate quotation size calculated by an ex-change and displayed by a quotation vendor on a terminal or other display device at the time an order is presented for execution to a responsible broker or dealer.

(16) The terms published bid and pub-lished offer shall mean the bid or offer of a responsible broker or dealer for a covered security communicated by it to its exchange or association pursuant to this section and displayed by a quotation vendor on a terminal or other display device at the time an order is presented for execution to such responsible broker or dealer.

(17) The term published quotation size shall mean the quotation size of a re-sponsible broker or dealer commu-nicated by it to its exchange or asso-ciation pursuant to this section and displayed by a quotation vendor on a terminal or other display device at the time an order is presented for execu-tion to such responsible broker or deal-er.

(18) The term quotation size, when used with respect to a responsible bro-ker’s or dealer’s bid or offer for a cov-ered security, shall mean:

(i) The number of shares (or units of trading) of that covered security which such responsible broker or dealer has specified, for purposes of dissemination to quotation vendors, that it is willing to buy at the bid price or sell at the offer price comprising its bid or offer, as either principal or agent; or

(ii) In the event such responsible broker or dealer has not so specified, a normal unit of trading for that covered security.

(19) The term quotation vendor shall mean any securities information proc-essor engaged in the business of dis-seminating to brokers, dealers or in-vestors on a real-time basis, bids and offers made available pursuant to this section, whether distributed through an electronic communications network or displayed on a terminal or other dis-play device.

(20) The term reported security means any security or class of securities for which transaction reports are col-lected, processed and made available pursuant to an effective transaction re-porting plan, or an effective national market system plan for reporting transactions in listed options.

(21) The term responsible broker or dealer shall mean:

(i) When used with respect to bids or offers communicated on an exchange, any member of such exchange who communicates to another member on such exchange, at the location (or loca-tions) designated by such exchange for trading in a covered security, a bid or offer for such covered security, as ei-ther principal or agent; provided, how-ever, That, in the event two or more members of an exchange have commu-nicated on such exchange bids or offers for a covered security at the same price, each such member shall be con-sidered a ‘‘responsible broker or deal-er’’ for that bid or offer, subject to the rules of priority and precedence then in effect on that exchange; and further provided, That for a bid or offer which is transmitted from one member of an exchange to another member who un-dertakes to represent such bid or offer on such exchange as agent, only the last member who undertakes to rep-resent such bid or offer as agent shall be considered the ‘‘responsible broker or dealer’’ for that bid or offer; and

(ii) When used with respect to bids and offers communicated by a member of an association to another broker or dealer or to a customer otherwise than on an exchange, the member commu-nicating the bid or offer (regardless of whether such bid or offer is for its own account or on behalf of another per-son).

(22) The term revised bid or offer shall mean a market maker’s bid or offer which supersedes its published bid or published offer.

(23) The term revised quotation size shall mean a market maker’s quotation size which supersedes its published quotation size.

(24) The term specified persons, when used in connection with any notifica-tion required to be provided pursuant to paragraph (b)(3) of this section and any election (or withdrawal thereof) permitted under paragraph (b)(5) of this section, shall mean:

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(i) Each quotation vendor;

(ii) Each plan processor; and

(iii) The processor for the Options

Price Reporting Authority (in the case of a notification for a subject security which is a class of securities under-lying options admitted to trading on any exchange).

(25) The term subject security shall mean:

(i) With respect to an exchange:

(A) Any exchange-traded security other than a security for which the ex-ecuted volume of such exchange, dur-ing the most recent calendar quarter, comprised one percent or less of the ag-gregate trading volume for such secu-rity as reported in the consolidated system; and

(B) Any other covered security for which such exchange has in effect an election, pursuant to paragraph (b)(5)(i) of this section, to collect, process, and make available to quotation vendors, bids, offers, quotation sizes, and aggre-gate quotation sizes communicated on such exchange; and

(ii) With respect to a member of an association:

(A) Any exchange-traded security for which such member acts in the capac-ity of an OTC market maker unless the executed volume of such member, dur-ing the most recent calendar quarter, comprised one percent or less of the ag-gregate trading volume for such secu-rity as reported in the consolidated system; and

(B) Any other covered security for which such member acts in the capac-ity of an OTC market maker and has in effect an election, pursuant to para-graph (b)(5)(ii) of this section, to com-municate to its association bids, offers and quotation sizes for the purpose of making such bids, offers and quotation sizes available to quotation vendors.

(26) The term customer means any person that is not a registered broker-dealer.

(27) The term listed option means any option traded on a registered national securities exchange or automated facil-ity of a national securities association.

(28) The term options class means all of the put option or call option series overlying a security, as defined in Sec-tion 3(a)(10) of the Act (15 U.S.C.

78c(a)(10)).

(29) The term options series means the contracts in an options class that have the same unit of trade, expiration date, and exercise price, and other terms or conditions.

(30) The term trading rotation means, with respect to an options class, the time period on an exchange during which:

(i) Opening, re-opening, or closing transactions in options series in such options class are not yet completed;

and

(ii) Continuous trading has not yet commenced or has not yet ended for the day in options series in such op-tions class.

(b) Dissemination requirements for ex-changes and associations. (1) Every ex-change and association shall establish and maintain procedures and mecha-nisms for collecting bids, offers, quotation sizes and aggregate quotation sizes from responsible bro-kers or dealers who are members of such exchange or association, proc-essing such bids, offers and sizes, and making such bids, offers and sizes available to quotation vendors, as fol-lows:

(i) Each exchange shall at all times such exchange is open for trading, col-lect, process and make available to quotation vendors the best bid, the best offer, and aggregate quotation sizes for each subject security listed or admitted to unlisted trading privileges which is communicated on any ex-change by any responsible broker or dealer, but shall not include:

(A) Any bid or offer executed imme-diately after communication and any bid or offer communicated by a respon-sible broker or dealer other than an ex-change market maker which is can-celled or withdrawn if not executed im-mediately after communication; and

(B) Any bid or offer communicated during a period when trading in that security has been suspended or halted, or prior to the commencement of trad-ing in that security on any trading day, on that exchange.

(ii) Each association shall, at all times that last sale information with respect to reported securities is re-ported pursuant to an effective trans-action reporting plan, collect, process

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(2) Each exchange shall, with respect to each published bid and published offer representing a bid or offer of a member for a subject security, estab-lish and maintain procedures for ascertaining and disclosing to other members of that exchange, upon pres-entation of orders sought to be exe-cuted by them in reliance upon para-graph (c)(2) of this section, the identity of the responsible broker or dealer who made such bid or offer and the quotation size associated with it.

(3)(i) If, at any time an exchange is open for trading, such exchange deter-mines, pursuant to rules approved by the Securities and Exchange Commis-sion pursuant to section 19(b)(2) of the

Act (15 U.S.C. 78s(b)(2)), that the level of trading activities or the existence of unusual market conditions is such that the exchange is incapable of collecting, processing, and making available to quotation vendors the data for a sub-ject security required to be made avail-able pursuant to paragraph (b)(1) of this section in a manner that accu-rately reflects the current state of the market on such exchange, such ex-change shall immediately notify all specified persons of that determina-tion. Upon such notification, respon-sible brokers or dealers that are mem-bers of that exchange shall be relieved of their obligation under paragraph

(c)(2) and (d)(3) of this section and such exchange shall be relieved of its obliga-tions under paragraphs (b) (1) and (2) of this section for that security: provided, however, That such exchange will con-tinue, to the maximum extent prac-ticable under the circumstances, to collect, process, and make available to quotation vendors data for that secu-rity in accordance with paragraph

(b)(1) of this section.

(ii) During any period an exchange, or any responsible broker or dealer that is a member of that exchange, is relieved of any obligation imposed by this section for any subject security by virtue of a notification made pursuant to paragraph (b)(3)(i) of this section, such exchange shall monitor the activ-ity or conditions which formed the basis for such notification and shall immediately renotify all specified per-sons when that exchange is once again capable of collecting, processing, and making available to quotation vendors the data for that security required to be made available pursuant to para-graph (b)(1) of this section in a manner that accurately reflects the current state of the market on such exchange.

Upon such renotification, any exchange or responsible broker or dealer which had been relieved of any obligation im-posed by this section as a consequence of the prior notification shall again be subject to such obligation.

(4) Nothing in this section shall pre-clude any exchange or association from making available to quotation vendors indications of interest or bids and of-fers for a subject security at any time such exchange or association is not re-quired to do so pursuant to paragraph

(b)(1) of this section.

(5)(i) Any exchange may make an election for purposes of paragraph

(a)(25)(i)(B) of this section for any cov-ered security, by collecting, processing, and making available bids, offers, quotation sizes, and aggregate quotation sizes in that security; except that for any covered security pre-viously listed or admitted to unlisted trading privileges on only one ex-change and not traded by any OTC market maker, such election shall be made by notifying all specified persons, and shall be effective at the opening of trading on the business day following notification.

(ii) Any member of an association acting in the capacity of an OTC mar-ket maker may make an election for purposes of paragraph (a)(25)(ii)(B) of this section for any covered security, by communicating to its association bids, offers, and quotation sizes in that security; except that for any other cov-ered security listed or admitted to un-listed trading privileges on only one

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OTC market maker, such election shall be made by notifying its association and all specified persons, and shall be effective at the opening of trading on the business day following notification.

(iii) The election of an exchange or member of an association for any cov-ered security pursuant to this para-graph (b)(5) shall cease to be in effect if such exchange or member ceases to make available or communicate bids, offers, and quotation sizes in such secu-rity.

(c) Obligations of responsible brokers and dealers. (1) Each responsible broker or dealer shall promptly communicate to its exchange or association, pursu-ant to the procedures established by that exchange or association, its best bids, best offers, and quotation sizes for any subject security.

(2) Subject to the provisions of para-graph (c)(3) of this section, each re-sponsible broker or dealer shall be obli-gated to execute any order to buy or sell a subject security, other than an odd-lot order, presented to it by an-other broker or dealer, or any other person belonging to a category of per-sons with whom such responsible broker or dealer customarily deals, at a price at least as favorable to such buyer or seller as the responsible bro-ker’s or dealer’s published bid or pub-lished offer (exclusive of any commis-sion, commission equivalent or dif-ferential customarily charged by such responsible broker or dealer in connec-tion with execution of any such order) in any amount up to its published quotation size.

(3)(i) No responsible broker or dealer shall be obligated to execute a trans-action for any subject security as pro-vided in paragraph (c)(2) of this section to purchase or sell that subject secu-rity in an amount greater than such re-vised quotation if:

(A) Prior to the presentation of an order for the purchase or sale of a sub-ject security, a responsible broker or dealer has communicated to its ex-change or association, pursuant to paragraph (c)(1) of this section, a re-vised quotation size; or

(B) At the time an order for the pur-chase or sale of a subject security is presented, a responsible broker or deal-er is in the process of effecting a trans-action in such subject security, and im-mediately after the completion of such transaction, it communicates to its ex-change or association a revised quotation size, such responsible broker or dealer shall not be obligated by paragraph (c)(2) of this section to pur-chase or sell that subject security in an amount greater than such revised quotation size.

(ii) No responsible broker or dealer shall be obligated to execute a trans-action for any subject security as pro-vided in paragraph (c)(2) of this section if:

(A) Before the order sought to be exe-cuted is presented, such responsible broker or dealer has communicated to its exchange or association pursuant to paragraph (c)(1) of this section, a re-vised bid or offer; or

(B) At the time the order sought to be executed is presented, such respon-sible broker or dealer is in the process of effecting a transaction in such sub-ject security, and, immediately after the completion of such transaction, such responsible broker or dealer com-municates to its exchange or associa-tion pursuant to paragraph (c)(1) of this section, a revised bid or offer; pro-vided, however, That such responsible broker or dealer shall nonetheless be obligated to execute any such order in such subject security as provided in paragraph (c)(2) of this section at its revised bid or offer in any amount up to its published quotation size or re-vised quotation size.

(4) Subject to the provisions of para-graph (b)(4) of this section:

(i) No exchange or OTC market maker may make available, dissemi-nate or otherwise communicate to any quotation vendor, directly or indi-rectly, for display on a terminal or other display device any bid, offer, quotation size, or aggregate quotation size for any covered security which is not a subject security with respect to such exchange or OTC market maker;

and

(ii) No quotation vendor may dis-seminate or display on a terminal or other display device any bid, offer, quotation size, or aggregate quotation size from any exchange or OTC market maker for any covered security which

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(5)(i) Entry of any priced order for a covered security by an exchange mar-ket maker or OTC market maker in that security into an electronic com-munications network that widely dis-seminates such order shall be deemed to be:

(A) A bid or offer under this section, to be communicated to the market maker’s exchange or association pursu-ant to paragraph (c) of this section for at least the minimum quotation size that is required by the rules of the market maker’s exchange or associa-tion if the priced order is for the ac-count of a market maker, or the actual size of the order up to the minimum quotation size required if the priced order is for the account of a customer;

and

(B) A communication of a bid or offer to a quotation vendor for display on a display device for purposes of para-graph (c)(4) of this section.

(ii) An exchange market maker or

OTC market maker that has entered a priced order for a covered security into an electronic communications network that widely disseminates such order shall be deemed to be in compliance with paragraph (c)(5)(i)(A) of this sec-tion if the electronic communications network:

(A)(1)Provides to an exchange or as-sociation (or an exclusive processor acting on behalf of one or more ex-changes or associations) the prices and sizes of the orders at the highest buy price and the lowest sell price for such security entered in, and widely dis-seminated by, the electronic commu-nications network by exchange market makers and OTC market makers for the covered security, and such prices and sizes are included in the quotation data made available by the exchange, association, or exclusive processor to quotation vendors pursuant to this sec-tion; and

(2) Provides, to any broker or dealer, the ability to effect a transaction with a priced order widely disseminated by the electronic communications net-work entered therein by an exchange market maker or OTC market maker that is:

(i) Equivalent to the ability of any broker or dealer to effect a transaction with an exchange market maker or

OTC market maker pursuant to the rules of the exchange or association to which the electronic communications network supplies such bids and offers;

and

(ii) At the price of the highest priced buy order or lowest priced sell order, or better, for the lesser of the cumulative size of such priced orders entered therein by exchange market makers or

OTC market makers at such price, or the size of the execution sought by the broker or dealer, for the covered secu-rity; or

(B) Is an alternative trading system that:

(1) Displays orders and provides the ability to effect transactions with such orders under § 242.301(b)(3) of this chap-ter; and

(2) Otherwise is in compliance with

Regulation ATS, § 242.300 through

§ 242.303 of this chapter.

(d) Transactions in listed options.

(1) An exchange or association:

(i) Shall not be required, under para-graph (b) of this section, to collect from responsible brokers or dealers who are members of such exchange or association, or to make available to quotation vendors, the quotation sizes and aggregate quotation sizes for listed options, if such exchange or associa-tion establishes by rule and periodi-cally publishes the quotation size for which such responsible brokers or deal-ers are obligated to execute an order to buy or sell an options series that is a subject security at its published bid or offer under paragraph (c)(2) of this sec-tion;

(ii) May establish by rule and periodi-cally publish a quotation size, which shall not be for less than one contract, for which responsible brokers or deal-ers who are members of such exchange or association are obligated under paragraph (c)(2) of this section to exe-cute an order to buy or sell a listed op-tion for the account of a broker or dealer that is in an amount different from the quotation size for which it is obligated to execute an order for the account of a customer; and

(iii) May establish and maintain pro-cedures and mechanisms for collecting

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17 CFR Ch. II (4–1–01 Edition)§ 240.11Ac1–2 from responsible brokers and dealers who are members of such exchange or association, and making available to quotation vendors, the quotation sizes and aggregate quotation sizes in listed options for which such responsible broker or dealer will be obligated under paragraph (c)(2) of this section to execute an order from a customer to buy or sell a listed option and establish by rule and periodically publish the size, which shall not be less than one contract, for which such responsible brokers or dealers are obligated to exe-cute an order for the account of a broker or dealer.

(2) If, pursuant to paragraph (d)(1) of this section, the rules of an exchange or association do not require its mem-bers to communicate to it their quotation sizes for listed options, a re-sponsible broker or dealer that is a member of such exchange or associa-tion shall:

(i) Be relieved of its obligations under paragraph (c)(1) of this section to communicate to such exchange or asso-ciation its quotation sizes for any list-ed option; and

(ii) Comply with its obligations under paragraph (c)(2) of this section by exe-cuting any order to buy or sell a listed option, in an amount up to the size es-tablished by such exchange’s or asso-ciation’s rules under paragraph (d)(1) of this section.

(3) Thirty second response. Each re-sponsible broker or dealer, within thir-ty seconds of receiving an order to buy or sell a listed option in an amount greater than the quotation size estab-lished by an exchange’s or association’s rules pursuant to paragraph (d)(1) of this section, or its published quotation size must:

(i) Execute the entire order; or

(ii)(A) Execute that portion of the order equal to at least:

(1) The quotation size established by an exchange’s or association’s rules, pursuant to paragraph (d)(1) of this sec-tion, to the extent that such exchange or association does not collect and make available to quotation vendors quotation size and aggregate quotation size under paragraph (b) of this section;

or

(2) Its published quotation size; and

(B) Revise its bid or offer.

(4) Notwithstanding paragraph (d)(3) of this section, no responsible broker or dealer shall be obligated to execute a transaction for any listed option as provided in paragraph (c)(2) of this sec-tion if:

(i) Any of the circumstances in para-graph (c)(3) of this section exist; or

(ii) The order for the purchase or sale of a listed option is presented during a trading rotation in that listed option.

(e) Exemptions. The Commission may exempt from the provisions of this sec-tion, either unconditionally or on spec-ified terms and conditions, any respon-sible broker or dealer, electronic com-munications network, exchange, or as-sociation if the Commission deter-mines that such exemption is con-sistent with the public interest, the protection of investors and the removal of impediments to and perfection of the mechanism of a national market sys-tem.

[61 FR 48328, Sept. 12, 1996, as amended at 63

FR 70919, Dec. 22, 1998; 65 FR 75461, Dec. 1, 2000]

§ 240.11Ac1–2 Display of transaction reports, last sale data and quotation information.

(a) Definitions. For purposes of this section, (1) The terms transaction re-port, effective transaction reporting plan, moving ticker, last sale data, market minder and interrogation device shall have the meaning provided in

§ 240.11Aa3–1 (Rules 11Aa3–1 under the

Act).

(2) The term vendor shall mean any securities information processor en-gaged in the business of disseminating transaction reports, last sale data or quotation information with respect to subject securities to brokers, dealers or investors on a real-time or other cur-rent and continuing basis, whether through an electronic communications network, moving ticker or interroga-tion device.

(3) The term NASDAQ shall mean the electronic inter-dealer quotation sys-tem owned and operated by NASDAQ, Inc., a subsidiary of the National Asso-ciation of Securities Dealers, Inc.

(4) The term subject security shall mean,

(i) Any reported security; and

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