SEC approves 5-to-1 quote-to-trade revenue cap for CT Plan members

The Securities and Exchange Commission issued an order on September 14, 2026 approving the third amendment to the National Market System (NMS) plan governing the Consolidated Tape (CT) Plan. The amendment revises the revenue allocation formula by imposing a five-to-one cap on the ratio of quote-related revenue to trade-related revenue for each member of the CT Plan.

The Operating Committee of the CT Plan LLC filed the amendment proposal on June 2, 2026, and the notice was published for comment on June 17, 2026 (Release No. 34-106349; File No. 4-757). After reviewing comments, the Commission approved the amendment, which will apply the ratio cap to each periodic distribution of CT Plan revenue. Any quote-related revenue that would cause a member's ratio to exceed five-to-one will be redistributed to other members, including FINRA, based on each member's share of distributable quote revenue. A de-minimis exception excludes members whose total quote-related payment does not exceed $50,000 in a calendar year.

The amendment addresses observed quoting patterns that the Operating Committee said distorted revenue allocation. For example, the Committee reported that LTSE's quote-to-trade ratio for 2024 was approximately 107:1 on Tape A, 70:1 on Tape B, and 88:1 on Tape C, while NYSE Texas exhibited ratios often exceeding 20:1. Historically, members have maintained ratios substantially less than five-to-one, with average ratios from 2018-2024 of 1.79 on Tape A, 1.86 on Tape B, and 1.82 on Tape C.

The Commission concluded that the amendment is appropriate in the public interest, for investor protection, and for maintaining fair and orderly markets under Rule 608 of Regulation NMS. The order is effective as of September 14, 2026 and binds all CT Plan members, which include 24 exchanges and FINRA as listed in the filing.