81 FR 76683 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend FINRA Rule 7730 To Establish a Fee for the Academic Corporate Bond TRACE Data Product
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 213 (November 3, 2016)
Federal Register Volume 81, Issue 213 (November 3, 2016)
| Page Range | 76683-76685 | |
| FR Document | 2016-26509 |
[Federal Register Volume 81, Number 213 (Thursday, November 3, 2016)] [Notices] [Pages 76683-76685] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-26509] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79190; File No. SR-FINRA-2016-040] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend FINRA Rule 7730 To Establish a Fee for the Academic Corporate Bond TRACE Data Product October 28, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on October 25, 2016, Financial Industry Regulatory Authority, Inc. (``FINRA'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by FINRA. FINRA has designated the proposed rule change as ``establishing or changing a due, fee or other charge'' under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal effective upon receipt of this filing by the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A)(ii). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change FINRA is proposing to amend FINRA Rule 7730 to establish a fee for the Academic Corporate Bond TRACE Data product. The text of the proposed rule change is available on FINRA's Web site at http://www.finra.org, at the principal office of FINRA and at the Commission's Public Reference Room. [[Page 76684]] II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FINRA included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. FINRA has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose FINRA's TRACE data product offerings, set forth in Rule 7730 (Trade Reporting and Compliance Engine (TRACE)), include both real-time as well as historic data for most TRACE-eligible securities. The SEC recently approved a new TRACE data product composed of enhanced historic data available solely to academics (i.e., requests originating from an institution of higher education).\5\ The new TRACE data product--Academic Corporate Bond TRACE Data -- will contain transaction-level data on historic transactions in corporate bonds and will include masked counterparty information.\6\ Specifically, ``Academic Corporate Bond TRACE Data'' means historic transaction-level data on all transactions in corporate bonds reported to TRACE (except a transaction that is a List or Fixed Offering Price Transaction, as defined in Rule 6710(q), or a Takedown Transaction, as defined in Rule 6710(r)), including Rule 144A transactions in corporate bonds, with elements to be determined from time to time by FINRA in its discretion and as stated in a Regulatory Notice or other equivalent publication.\7\ --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 78759 (September 2, 2016), 81 FR 62222 (September 8, 2016) (``Order Approving File No. SR-FINRA-2016-024''). \6\ See Rule 7730(g)(5). \7\ See supra note 6. --------------------------------------------------------------------------- The Academic Corporate Bond TRACE Data will be delayed a minimum of 36 months and will not include Market Participant Identifiers (``MPIDs''), but will substitute a masked dealer identifier for each MPID included in the data.\8\ Applicants for Academic Corporate Bond TRACE Data will be required to execute appropriate agreements with FINRA.\9\ --------------------------------------------------------------------------- \8\ See supra note 6. \9\ See Rule 7730(e). --------------------------------------------------------------------------- FINRA is now proposing to amend FINRA Rule 7730 (Trade Reporting and Compliance Engine (TRACE)) to establish fees for the Academic Corporate Bond TRACE Data product. FINRA is proposing to establish a data fee of $500 per calendar year (with a single set-up fee of $500) for receipt of the Academic Corporate Bond TRACE Data product. FINRA believes that this fee is reasonable, and notes that the subscription fee for the Historic TRACE Data Sets is $500 per year (per data set), with a single fee of $1,000 for development and set-up to receive Historic TRACE Data for qualifying tax-exempt organizations. FINRA has filed the proposed rule change for immediate effectiveness. The effective date of the proposed rule change will be the date of effectiveness of the Academic Corporate Bond TRACE Data product.\10\ --------------------------------------------------------------------------- \10\ See Order Approving File No. SR-FINRA-2016-024. FINRA will announce the effective date of the Academic Corporate Bond TRACE Data product in a Regulatory Notice to be published no later than 90 days following Commission approval. The effective date will be no later than 270 days following publication of that Regulatory Notice. --------------------------------------------------------------------------- 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(5) of the Act,\11\ which requires, among other things, that FINRA rules provide for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system that FINRA operates or controls. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78o-3(b)(5). --------------------------------------------------------------------------- Pursuant to the proposal, FINRA will establish fees to make available to institutions of higher education an enhanced historic TRACE data product that will include transaction-level data on corporate bonds on a 36-month delayed basis with masked MPIDs. Academic Corporate Bond TRACE Data will be made available only to institutions of higher education for a fee of $500 per calendar year (with a single set-up fee of $500). FINRA believes that the proposed fees are reasonable, and notes that the fees will be applied equally to all institutions of higher education that choose to subscribe to the data product. Thus, FINRA believes that the proposed rule change is consistent with the Act. B. Self-Regulatory Organization's Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposal to create a new Academic Corporate Bond TRACE Data product would not impose any additional reporting requirements or costs on firms and, as a result, would have no direct impact on firms. The proposal to establish fees in connection with the new Academic Corporate Bond TRACE Data product applies only to institutions of higher education that choose to subscribe to the data product, and the proposed fees will apply equally to all such subscribers. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others FINRA solicited comment on a proposal to establish an enhanced historic data product with masked dealer identifiers in Regulatory Notice 15-26, including the proposal of a $500 fee per data set and a one-time initial set-up fee of $500. FINRA received four comment letters in response to the Regulatory Notice.\12\ A copy of the Regulatory Notice is attached as Exhibit 2a. A list of comment letters received in response to the Regulatory Notice is attached as Exhibit 2b. Copies of the comment letters received in response to the Regulatory Notice are attached as Exhibit 2c. Of the four comment letters received, none of the commenters discussed the $500 fee per data set or the single set-up fee of $500. --------------------------------------------------------------------------- \12\ See Letter from Michael Nicholas, Chief Executive Officer, Bond Dealers of America, to Marcia E. Asquith, Corporate Secretary, FINRA, dated August 24, 2015 (``BDA''), letter from Luis Palacios, Director of Research Services, The Wharton School, to Marcia E. Asquith, Corporate Secretary, FINRA, dated September 10, 2015 (``Wharton''), letter from David L. Cohen, Managing Director & Associate General Counsel, and Sean Davy, Managing Director, Securities Industry and Financial Markets Association, to Marcia E. Asquith, Corporate Secretary, FINRA, dated September 11, 2015 (``SIFMA''), and letter from Carrie Devorah, Founder, The Center for Copyrights Integrity, to Marcia E. Asquith, Corporate Secretary, FINRA, dated September 14, 2015 (``CCI''). --------------------------------------------------------------------------- III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \13\ and paragraph (f)(2) of Rule 19b-4 thereunder.\14\ At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the [[Page 76685]] public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-FINRA-2016-040 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-FINRA-2016-040. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of FINRA. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-FINRA-2016-040, and should be submitted on or before November 25, 2016. --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ Brent J. Fields, Secretary. [FR Doc. 2016-26509 Filed 11-2-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 213 / Thursday, November 3, 2016 / Notices 76683
The individual firm benefits of IV. Solicitation of Comments For the Commission, by the Division of
enhanced risk protections flow Trading and Markets, pursuant to delegated
downstream to counterparties both at Interested persons are invited to authority.61
the Exchange and at other options submit written data, views, and Brent J. Fields,
exchanges, which increases systemic arguments concerning the foregoing, Secretary.
protections as well. The Exchange including whether the proposed rule
[FR Doc. 2016–26510 Filed 11–2–16; 8:45 am]
believes these risk protections will change is consistent with the Act.
BILLING CODE 8011–01–P
allow TPHs to enter orders and quotes Comments may be submitted by any of
with reduced fear of inadvertent the following methods:
exposure to excessive risk, which will
Electronic Comments SECURITIES AND EXCHANGE
benefit investors through increased
liquidity for the execution of their COMMISSION
• Use the Commission’s Internet
orders. Without adequate risk comment form (http://www.sec.gov/
management tools, such as those [Release No. 34–79190; File No. SR–FINRA–
rules/sro.shtml); or 2016–040]
proposed in this filing, TPHs could
reduce the amount of order flow and • Send an email to rule-comments@
liquidity they provide. Such actions sec.gov. Please include File Number SR– Self-Regulatory Organizations;
may undermine the quality of the C2–2016–020 on the subject line. Financial Industry Regulatory
markets available to customers and Authority, Inc.; Notice of Filing and
Paper Comments Immediate Effectiveness of a Proposed
other market participants. Accordingly,
the proposed rule change is designed to • Send paper comments in triplicate Rule Change To Amend FINRA Rule
encourage TPHs to submit additional to Secretary, Securities and Exchange 7730 To Establish a Fee for the
order flow and liquidity to the Commission, 100 F Street NE., Academic Corporate Bond TRACE
Exchange, which may ultimately Washington, DC 20549–1090. Data Product
promote competition. In addition,
providing TPHs with more tools for All submissions should refer to File October 28, 2016.
managing risk will facilitate transactions Number SR–C2–2016–020. This file Pursuant to Section 19(b)(1) of the
in securities because, as noted above, number should be included on the Securities Exchange Act of 1934
TPHs will have more confidence subject line if email is used. To help the (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
protections are in place that reduce the Commission process and review your notice is hereby given that on October
risks from potential system errors and comments more efficiently, please use 25, 2016, Financial Industry Regulatory
market events. only one method. The Commission will Authority, Inc. (‘‘FINRA’’) filed with the
Based on discussions with TPHs post all comments on the Commission’s Securities and Exchange Commission
regarding its current and proposed Internet Web site (http://www.sec.gov/ (‘‘SEC’’ or ‘‘Commission’’) the proposed
package of risk controls and price rules/sro.shtml). Copies of the rule change as described in Items I, II,
protection mechanisms, the Exchange submission, all subsequent and III below, which Items have been
understands TPHs support the amendments, all written statements
implementation of price protection prepared by FINRA. FINRA has
with respect to the proposed rule designated the proposed rule change as
mechanisms such as these and expects change that are filed with the
TPHs to input settings that are ‘‘establishing or changing a due, fee or
Commission, and all written other charge’’ under Section
meaningful so they can take full
communications relating to the 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
advantage of the benefits these
mechanisms are intended to provide. proposed rule change between the 4(f)(2) thereunder,4 which renders the
Commission and any person, other than proposal effective upon receipt of this
C. Self-Regulatory Organization’s those that may be withheld from the filing by the Commission. The
Statement on Comments on the public in accordance with the Commission is publishing this notice to
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be solicit comments on the proposed rule
Members, Participants, or Others available for Web site viewing and change from interested persons.
The Exchange neither solicited nor printing in the Commission’s Public
received comments on the proposed Reference Room, 100 F Street NE., I. Self-Regulatory Organization’s
rule change. Washington, DC 20549, on official Statement of the Terms of Substance of
business days between the hours of the Proposed Rule Change
III. Date of Effectiveness of the
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of the FINRA is proposing to amend FINRA
Commission Action filing also will be available for Rule 7730 to establish a fee for the
inspection and copying at the principal Academic Corporate Bond TRACE Data
Within 45 days of the date of
office of the Exchange. All comments product.
publication of this notice in the Federal
received will be posted without change;
Register or within such longer period The text of the proposed rule change
up to 90 days (i) as the Commission may the Commission does not edit personal
identifying information from is available on FINRA’s Web site at
designate if it finds such longer period http://www.finra.org, at the principal
to be appropriate and publishes its submissions. You should submit only
information that you wish to make office of FINRA and at the
mstockstill on DSK3G9T082PROD with NOTICES
reasons for so finding or (ii) as to which Commission’s Public Reference Room.
the Exchange consents, the Commission available publicly. All submissions
will: should refer to File Number SR–C2–
A. By order approve or disapprove 2016–020, and should be submitted on 61 17 CFR 200.30–3(a)(12).
such proposed rule change, or or before November 25, 2016. 1 15 U.S.C. 78s(b)(1).
B. institute proceedings to determine 2 17 CFR 240.19b–4.
whether the proposed rule change 3 15 U.S.C. 78s(b)(3)(A)(ii).
should be disapproved. 4 17 CFR 240.19b–4(f)(2).
VerDate Sep<11>2014 17:54 Nov 02, 2016 Jkt 241001 PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 E:\FR\FM\03NON1.SGM 03NON1](https://thefederalregister.org/doc/81_FR_76896/page/1.svg)
![Federal Register / Vol. 81, No. 213 / Thursday, November 3, 2016 / Notices 76685
public interest, for the protection of 2016–040, and should be submitted on DEPARTMENT OF STATE
investors, or otherwise in furtherance of or before November 25, 2016.
[Public Notice: 9783]
the purposes of the Act. If the For the Commission, by the Division of
Commission takes such action, the Trading and Markets, pursuant to delegated 60-Day Notice of Proposed Information
Commission shall institute proceedings authority.15 Collection: Exchange Programs
to determine whether the proposed rule Alumni Web Site Registration
Brent J. Fields,
should be approved or disapproved.
Secretary. Notice of request for public
ACTION:
IV. Solicitation of Comments [FR Doc. 2016–26509 Filed 11–2–16; 8:45 am] comment.
Interested persons are invited to BILLING CODE 8011–01–P
submit written data, views, and SUMMARY: The Department of State is
arguments concerning the foregoing, seeking Office of Management and
including whether the proposed rule Budget (OMB) approval for the
change is consistent with the Act. DEPARTMENT OF STATE information collection described below.
Comments may be submitted by any of In accordance with the Paperwork
the following methods: Reduction Act of 1995, we are
[Public Notice 9781]
requesting comments on this collection
Electronic Comments from all interested individuals and
E.O. 13224 Designation of Abu Ali
organizations. The purpose of this
• Use the Commission’s Internet Tabatabai, aka Abu Ali Tabtabai, aka
Abu ‘Ali Al-Tabataba’i, aka Haytham notice is to allow 60 days for public
comment form (http://www.sec.gov/
comment preceding submission of the
rules/sro.shtml); or ‘Ali Tabataba’i, as a Specially
collection to OMB.
• Send an email to rule-comments@ Designated Global Terrorist
DATES: The Department will accept
sec.gov. Please include File Number SR– comments from the public up to January
FINRA–2016–040 on the subject line. Acting under the authority of and in
accordance with section 1(b) of 3, 2017.
Paper Comments Executive Order 13224 of September 23, ADDRESSES: You may submit comments
2001, as amended by Executive by any of the following methods:
• Send paper comments in triplicate • Web: Persons with access to the
to Brent J. Fields, Secretary, Securities Order13268 of July 2, 2002, and
Executive Order 13284 of January 23, Internet may use the Federal Docket
and Exchange Commission, 100 F Street Management System (FDMS) to
NE., Washington, DC 20549–1090. 2003, I hereby determine that the
comment on this notice by going to
individual known as Abu Ali Tabatabai,
All submissions should refer to File www.Regulations.gov. You can search
aka Abu Ali Tabtabai, aka Abu ‘Ali Al-
Number SR–FINRA–2016–040. This file for the document by entering the docket
number should be included on the Tabataba’i, aka Haytham ‘Ali
number (DOS–2016–0052) in the Search
subject line if email is used. To help the Tabataba’i,, committed, or poses a bar.
Commission process and review your significant risk of committing, acts of • Email: MessingerCB@state.gov.
comments more efficiently, please use terrorism that threaten the security of • Mail: Bureau of Educational and
only one method. The Commission will U.S. nationals or the national security, Cultural Affairs; U.S. Department of
post all comments on the Commission’s foreign policy, or economy of the United State; SA–5, Room C2–C20;
Internet Web site (http://www.sec.gov/ States. Washington, DC 20522–0503.
rules/sro.shtml). Copies of the Consistent with the determination in You must include the DS form
submission, all subsequent section 10 of Executive Order 13224 that number, information collection title,
amendments, all written statements prior notice to persons determined to be and the OMB control number in any
with respect to the proposed rule subject to the Order who might have a correspondence.
change that are filed with the constitutional presence in the United FOR FURTHER INFORMATION CONTACT:
Commission, and all written States would render ineffectual the Direct requests for additional
communications relating to the blocking and other measures authorized information regarding the collection
proposed rule change between the in the Order because of the ability to listed in this notice, including requests
Commission and any person, other than transfer funds instantaneously, I for copies of the proposed collection
those that may be withheld from the instrument and supporting documents,
determine that no prior notice needs to
public in accordance with the to Carlyn Messinger, Alumni Outreach
be provided to any person subject to this
provisions of 5 U.S.C. 552, will be Specialist, Bureau of Educational and
available for Web site viewing and determination who might have a
constitutional presence in the United Cultural Affairs; U.S. Department of
printing in the Commission’s Public State; SA–5, Room C2–C20;
Reference Room, 100 F Street NE., States, because to do so would render
ineffectual the measures authorized in Washington, DC 20522–0503, who may
Washington, DC 20549 on official be reached on 202–632–6183 or at
business days between the hours of the Order.
MessingerCB@state.gov.
10:00 a.m. and 3:00 p.m. Copies of such This notice shall be published in the SUPPLEMENTARY INFORMATION:
filing also will be available for Federal Register. • Title of Information Collection:
inspection and copying at the principal Exchange Programs Alumni Web site
Dated: September 12, 2016.
office of FINRA. All comments received
mstockstill on DSK3G9T082PROD with NOTICES
John F. Kerry, Registration.
will be posted without change; the • OMB Control Number: 1405–0192.
Commission does not edit personal Secretary of State.
• Type of Request: Revision of an
identifying information from [FR Doc. 2016–26596 Filed 11–2–16; 8:45 am]
Approved Request.
submissions. You should submit only BILLING CODE 4710–AD–P • Originating Office: Bureau of
information that you wish to make Educational and Cultural Affairs, ECA/
available publicly. All submissions P/A.
should refer to File Number SR–FINRA– 15 17 CFR 200.30–3(a)(12). • Form Number: DS–7006.
VerDate Sep<11>2014 17:54 Nov 02, 2016 Jkt 241001 PO 00000 Frm 00133 Fmt 4703 Sfmt 4703 E:\FR\FM\03NON1.SGM 03NON1](https://thefederalregister.org/doc/81_FR_76896/page/3.svg)
Document Created: 2016-11-03 03:24:33
Document Modified: 2016-11-03 03:24:33
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 81 FR 76683 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR