On April 20, 2020, the Commission granted the Participants’ request to exempt broker-dealers that do not qualify as Small Industry Members solely because they satisfy Rule 0-10(i)(2) under the Exchange Act and, as a result, are deemed affiliated with an entity that is not a small business or small organization (“Introducing Industry Member”) from the requirements in the CAT NMS Plan applicable to Industry Members other than Small Industry Members (“Large Industry Members”).  Instead, such Introducing Industry Members would comply with the requirements in the CAT NMS Plan applicable to Small Industry Members.  In light of this exemptive relief, a Small Industry Member would be defined as an Industry Member that qualifies as a small broker-dealer as defined in Rule 0-10(c) under the Securities Exchange Act of 1934, as amended, without reference to Rule 0-10(i)(2) for purposes of Rule 0-10(c)(2).

Rule 0-10(c) under the Exchange Act states that the term small business or small organization shall,

[w]hen used with reference to a broker or dealer, mean a broker-dealer that:

• 1. Had total capital (net worth plus subordinated liabilities) of less than $500,000 on the date in the prior fiscal year as of which its audited financial statements were prepared pursuant to § 240.17a-5(d) or, if not required to file such statements, a broker or dealer that had total capital (net worth plus subordinated liabilities) of less than $500,000 on the last business day of the preceding fiscal year (or in the time that it has been in business, if shorter); and
• 2. Is not affiliated with any person (other than a natural person) that is not a small business or small organization as defined in this section. 

Rule 0-10(i) under the Exchange Act further states that

[f]or purposes of paragraph (c) of this section, a broker or dealer is affiliated with another person if:

• 1. Such broker or dealer controls, is controlled by, or is under common control with such other person; a person shall be deemed to control another person if that person has the right to vote 25 percent or more of the voting securities of such other person or is entitled to receive 25 percent or more of the net profits of such other person or is otherwise able to direct or cause the direction of the management or policies of such other person; or
• 2. Such broker or dealer introduces transactions in securities, other than registered investment company securities or interests or participations in insurance company separate accounts, to such other person, or introduces accounts of customers or other brokers or dealers, other than accounts that hold only registered investment company securities or interests or participations in insurance company separate accounts, to such other person that carries such accounts on a fully disclosed basis.