81 FR 96530 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Eliminate Fees for Historical Trade Data Accessed Through the FINRA ADDS Web Site

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 251 (December 30, 2016)

Page Range		96530-96532
FR Document		2016-31682
Federal Register, Volume 81 Issue 251 (Friday, December 30, 2016)
[Federal Register Volume 81, Number 251 (Friday, December 30, 2016)]
[Notices]
[Pages 96530-96532]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31682]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79682; File No. SR-FINRA-2016-048]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Eliminate Fees for Historical Trade Data 
Accessed Through the FINRA ADDS Web Site

December 23, 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 December 20, 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.
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    \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).
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    FINRA is proposing to amend FINRA Rules 7510, 7710 and 7730 to 
eliminate the fees for historical trade data accessed through the FINRA 
Automated Data Delivery System (``FINRA ADDS'') Web site relating to 
trades reported to the Alternative Display Facility (``ADF''), OTC 
Reporting Facility (``ORF'') and Trade Reporting and Compliance Engine 
(``TRACE'').
    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 96531]]

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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    FINRA ADDS is a data delivery system that provides members, by 
market participant identifier (``MPID''), access to trade journal files 
containing key information regarding the member's trades reported to 
the ADF, ORF and TRACE. FINRA ADDS also provides member clearing firms 
access to data regarding their correspondents' trades reported to the 
ORF. Members use the trade journal files to reconcile the trade 
information captured by their own systems and the information captured 
by the FINRA trade reporting systems. Members can access FINRA ADDS 
data via the secure FINRA ADDS Web site and via Secure File Transfer 
Protocol (``SFTP'').
    Pursuant to Rules 7510(d), 7710(c) and 7730(g), FINRA makes recent 
ADF, ORF and TRACE trade journals available for free and offers 
subscribers the option of receiving historical data and retrieving data 
automatically via SFTP for a fee.\5\ Specifically, a member has access 
via the FINRA ADDS Web site to ADF, ORF or TRACE trade data associated 
with its MPID for the three prior business days (ADF and ORF) or 30 
prior business days (TRACE) free of charge without having to subscribe 
and pay for additional optional data services.
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    \5\ FINRA notes that a member that subscribes to the optional 
FINRA ADDS services via the FINRA ADDS Web site or SFTP for ADF, ORF 
and TRACE data pays three separate fees under Rules 7510(d), 7710(c) 
and 7730(g).
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    In addition, members can subscribe to receive their data for dates 
older than the most recent three or 30 business days through the Data 
Delivery Plus service for a monthly fee. Through this service, 
subscribers can access up to two years of trade journal files via the 
FINRA ADDS Web site. The fee is charged per month to an MPID that is a 
subscriber for Data Delivery Plus reports (``Plus Reports''), which are 
provided in response to requests by the MPID. The monthly fees for ORF 
and TRACE data are based on the subscriber's reported volume and the 
number of Plus Reports the subscriber receives, and for ADF data, the 
fees are based on the number of Plus Reports the subscriber receives. 
The ORF and TRACE fees range from a low of $10 to a high of $100 a 
month, and the ADF fees range from a low of $60 to a high of $100 a 
month. Thus, subscribers' fees may vary during a calendar year, 
depending on the number of reports FINRA makes available to the 
subscriber in response to the subscriber's requests. Clearing firms 
that subscribe to access their correspondents' historic ORF data pay a 
flat fee of $150 per Clearing Number per month, irrespective of the 
number of reports received.
    FINRA is proposing to amend Rules 7510(d), 7710(c) and 7730(g) to 
eliminate the fees for historical data through the FINRA ADDS Web site. 
As such, all trade journals (recent and historical for up to two years) 
through the FINRA ADDS Web site will be free of charge.\6\ The proposed 
rule change will enable all ADF, ORF and TRACE participants to look up 
their historical trade data free of charge via the FINRA ADDS Web site 
to reconcile with transaction and clearing data captured by their own 
systems.
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    \6\ FINRA notes that the proposed rule change does not modify 
the fees for FINRA ADDS data delivered via SFTP under Rules 7510(d), 
7710(c) and 7730(g).
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    FINRA believes that the proposed rule change will assist members in 
meeting their trade reporting and trade management obligations and will 
not result in any burden on members. The overall revenue that FINRA 
collects from fees for Plus Reports through the FINRA ADDS Web site is 
de minimis, and as such, FINRA does not believe that the fees warrant 
the administrative burden of calculating members' fees based on 
reported volume and number of reports under the current fee schedule. 
In addition, the proposed rule change would eliminate the uncertainty 
of the current fee schedule for members, whose fees may vary according 
to the number of Plus Reports the member requests. Under the proposed 
rule change, members will be able to request an unlimited number of 
reports through the FINRA ADDS Web site at no charge.
    FINRA has filed the proposed rule change for immediate 
effectiveness. The operative date will be January 3, 2017.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(5) of the Act,\7\ 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. All similarly situated members are subject to the same fee 
structure and access to the ADF, ORF and TRACE is offered on fair and 
non-discriminatory terms. FINRA believes that the proposed rule change 
provides for the equitable allocation of reasonable fees in that it 
will eliminate a fee and enable all ADF, ORF and TRACE participants to 
access their trade data through the FINRA ADDS Web site at no charge. 
Thus, all ADF, ORF and TRACE participants will have the ability to look 
up their historical trade data via the FINRA ADDS Web site to reconcile 
with transaction and clearing data captured by their own systems. 
Members will continue to have the option of subscribing and paying for 
FINRA ADDS data delivered via SFTP, if they prefer automated retrieval 
of their trade data.
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    \7\ 15 U.S.C. 78o-3(b)(5).
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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. FINRA believes that the 
proposed rule change, by eliminating the fee for historical ADF, ORF 
and TRACE data via the FINRA ADDS Web site and enabling all ADF, ORF 
and TRACE participants to access their trade data at no charge, will 
assist members in meeting their trade reporting and trade management 
obligations and will not result in any burden on members. To the extent 
that the fees that are being proposed to be eliminated were viewed as 
burdensome among market participants, those participants may choose to 
utilize the data accessed through the FINRA ADDS Web site to reconcile 
with transaction and clearing data captured by their own systems, which 
would permit members to mitigate any direct or indirect costs imposed 
by the inability to reconcile such data.

[[Page 96532]]

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

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 \8\ and paragraph (f)(2) of Rule 19b-4 
thereunder.\9\ 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 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.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(2).
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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 Comments

     Use 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-2016-048 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-FINRA-2016-048. 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-2016-048, and should 
be submitted on or before January 20, 2017.
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    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-31682 Filed 12-29-16; 8:45 am]
 BILLING CODE 8011-01-P
96530 Federal Register / Vol. 81, No. 251 / Friday, December 30, 2016 / Notices

potential to impair revenues from both of investors; or (iii) otherwise in For the Commission, by the Division of
products. In this manner, the furtherance of the purposes of the Act. Trading and Markets, pursuant to delegated
competition for order flow will If the Commission takes such action, the authority.23
constrain prices for proprietary data Commission shall institute proceedings Robert W. Errett,
products. to determine whether the proposed rule Deputy Secretary.
should be approved or disapproved. [FR Doc. 2016–31681 Filed 12–29–16; 8:45 am]
Substitute Products
BILLING CODE 8011–01–P
The price of depth-of-book data is IV. Solicitation of Comments
constrained by the existence of Interested persons are invited to
competition from other exchanges, such submit written data, views, and SECURITIES AND EXCHANGE
as NYSE and BATS, which sell arguments concerning the foregoing, COMMISSION
proprietary depth-of-book data. While a including whether the proposed rule
[Release No. 34–79682; File No. SR–FINRA–
small number of highly sophisticated change is consistent with the Act. 2016–048]
traders purchase depth-of-book products Comments may be submitted by any of
from multiple exchanges, most the following methods: Self-Regulatory Organizations;
customers do not. Because most Financial Industry Regulatory
customers would not pay an excessive Electronic Comments
Authority, Inc.; Notice of Filing and
price for TotalView when substitute • Use the Commission’s Internet Immediate Effectiveness of a Proposed
data is available from other proprietary comment form (http://www.sec.gov/ Rule Change To Eliminate Fees for
sources, the Exchange is constrained in rules/sro.shtml); or Historical Trade Data Accessed
its pricing decisions. • Send an email to rule-comments@ Through the FINRA ADDS Web Site
sec.gov. Please include File Number SR–
Competition Among Distributors December 23, 2016.
BX–2016–073 on the subject line.
Competition among Distributors Pursuant to Section 19(b)(1) of the
provides another form of price Paper Comments Securities Exchange Act of 1934
discipline for proprietary data products. • Send paper comments in triplicate (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
If the price of TotalView were set above to Secretary, Securities and Exchange notice is hereby given that on December
competitive levels, Distributors Commission, 100 F Street NE., 20, 2016, Financial Industry Regulatory
purchasing TotalView would be at a Washington, DC 20549–1090. Authority, Inc. (‘‘FINRA’’) filed with the
disadvantage relative to their All submissions should refer to File Securities and Exchange Commission
competitors, and would therefore either Number SR–BX–2016–073. This file (‘‘SEC’’ or ‘‘Commission’’) the proposed
purchase a substitute or forego the number should be included on the rule change as described in Items I, II,
product altogether. subject line if email is used. To help the and III below, which Items have been
In summary, market forces constrain Commission process and review your prepared by FINRA. FINRA has
the price of depth-of-book data such as comments more efficiently, please use designated the proposed rule change as
TotalView through competition for only one method. The Commission will ‘‘establishing or changing a due, fee or
order flow, competition from substitute post all comments on the Commission’s other charge’’ under Section
products, and in the competition among Internet Web site (http://www.sec.gov/ 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
vendors for customers. For these rules/sro.shtml). Copies of the 4(f)(2) thereunder,4 which renders the
reasons, the Exchange has provided a submission, all subsequent proposal effective upon receipt of this
substantial basis demonstrating that the amendments, all written statements filing by the Commission. The
fee is equitable, fair, reasonable, and not with respect to the proposed rule Commission is publishing this notice to
unreasonably discriminatory, and change that are filed with the solicit comments on the proposed rule
therefore consistent with and in Commission, and all written change from interested persons.
furtherance of the purposes of the communications relating to the
Exchange Act. I. Self-Regulatory Organization’s
proposed rule change between the Statement of the Terms of the Substance
C. Self-Regulatory Organization’s Commission and any person, other than of the Proposed Rule Change
Statement on Comments on the those that may be withheld from the
public in accordance with the FINRA is proposing to amend FINRA
Proposed Rule Change Received From
provisions of 5 U.S.C. 552, will be Rules 7510, 7710 and 7730 to eliminate
Members, Participants, or Others
available for Web site viewing and the fees for historical trade data
No written comments were either accessed through the FINRA Automated
printing in the Commission’s Public
solicited or received. Data Delivery System (‘‘FINRA ADDS’’)
Reference Room, 100 F Street NE.,
III. Date of Effectiveness of the Washington, DC 20549 on official Web site relating to trades reported to
Proposed Rule Change and Timing for business days between the hours of the Alternative Display Facility
Commission Action 10:00 a.m. and 3:00 p.m. Copies of the (‘‘ADF’’), OTC Reporting Facility
filing also will be available for (‘‘ORF’’) and Trade Reporting and
The foregoing rule change has become Compliance Engine (‘‘TRACE’’).
effective pursuant to Section inspection and copying at the principal
office of the Exchange. All comments The text of the proposed rule change
19(b)(3)(A)(ii) of the Act.22 is available on FINRA’s Web site at
At any time within 60 days of the received will be posted without change;
the Commission does not edit personal http://www.finra.org, at the principal
filing of the proposed rule change, the
srobinson on DSK5SPTVN1PROD with NOTICES

identifying information from office of FINRA and at the
Commission summarily may Commission’s Public Reference Room.
temporarily suspend such rule change if submissions. You should submit only
it appears to the Commission that such information that you wish to make 23 17 CFR 200.30–3(a)(12).
action is: (i) necessary or appropriate in available publicly. All submissions 1 15 U.S.C. 78s(b)(1).
the public interest; (ii) for the protection should refer to File Number SR–BX– 2 17 CFR 240.19b–4.
2016–073, and should be submitted on 3 15 U.S.C. 78s(b)(3)(A)(ii).
22 15 U.S.C. 78s(b)(3)(A)(ii). or before January 20, 2017. 4 17 CFR 240.19b–4(f)(2).

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96532 Federal Register / Vol. 81, No. 251 / Friday, December 30, 2016 / Notices

C. Self-Regulatory Organization’s Commission and any person, other than connection with a system migration to
Statement on Comments on the those that may be withheld from the Nasdaq INET technology.
Proposed Rule Change Received From public in accordance with the The text of the proposed rule change
Members, Participants, or Others provisions of 5 U.S.C. 552, will be is available on the Exchange’s Web site
Written comments were neither available for Web site viewing and at www.ise.com, at the principal office
solicited nor received. printing in the Commission’s Public of the Exchange, and at the
Reference Room, 100 F Street NE., Commission’s Public Reference Room.
III. Date of Effectiveness of the Washington, DC 20549 on official
Proposed Rule Change and Timing for business days between the hours of II. Self-Regulatory Organization’s
Commission Action 10:00 a.m. and 3:00 p.m. Copies of such Statement of the Purpose of, and
The foregoing rule change has become filing also will be available for Statutory Basis for, the Proposed Rule
effective pursuant to Section 19(b)(3)(A) inspection and copying at the principal Change
of the Act 8 and paragraph (f)(2) of Rule office of FINRA. All comments received
In its filing with the Commission, the
19b–4 thereunder.9 At any time within will be posted without change; the
Exchange included statements
60 days of the filing of the proposed rule Commission does not edit personal
identifying information from concerning the purpose of and basis for
change, the Commission summarily may the proposed rule change and discussed
temporarily suspend such rule change if submissions. You should submit only
information that you wish to make any comments it received on the
it appears to the Commission that such proposed rule change. The text of these
action is necessary or appropriate in the available publicly. All submissions
should refer to File Number SR–FINRA– statements may be examined at the
public interest, for the protection of places specified in Item IV below. The
investors, or otherwise in furtherance of 2016–048, and should be submitted on
or before January 20, 2017. Exchange has prepared summaries, set
the purposes of the Act. If the forth in sections A, B, and C below, of
Commission takes such action, the For the Commission, by the Division of the most significant aspects of such
Commission shall institute proceedings Trading and Markets, pursuant to delegated
authority.10
statements.
to determine whether the proposed rule
should be approved or disapproved. Robert W. Errett, A. Self-Regulatory Organization’s
Deputy Secretary. Statement of the Purpose of, and
IV. Solicitation of Comments
[FR Doc. 2016–31682 Filed 12–29–16; 8:45 am] Statutory Basis for, the Proposed Rule
Interested persons are invited to Change
BILLING CODE 8011–01–P
submit written data, views, and
arguments concerning the foregoing, 1. Purpose
including whether the proposed rule SECURITIES AND EXCHANGE The purpose of this rule change is to
change is consistent with the Act. COMMISSION amend the Supplementary Material to
Comments may be submitted by any of ISE Rule 1901, titled ‘‘Order Protection’’
the following methods: [Release No. 34–79686; File No. SR–ISE–
2016–31] to reflect the ISE, ISE Gemini, LLC and
Electronic Comments ISE Mercury, LLC technology migration
Self-Regulatory Organizations; to a Nasdaq, Inc. (‘‘Nasdaq’’) supported
• Use the Commission’s Internet
International Securities Exchange, architecture. INET is the proprietary
comment form (http://www.sec.gov/
LLC; Notice of Filing of Proposed Rule core technology utilized across Nasdaq’s
rules/sro.shtml); or
• Send an email to rule-comments@ Change to Amend the Supplementary global markets and utilized on The
sec.gov. Please include File Number SR– Material to ISE Rule 1901 NASDAQ Options Market LLC
FINRA–2016–048 on the subject line. (‘‘NOM’’), NASDAQ PHLX LLC (‘‘Phlx’’)
December 23, 2016.
and NASDAQ BX, Inc. (‘‘BX’’)
Paper Comments Pursuant to Section 19(b)(1) of the (collectively, ‘‘Nasdaq Exchanges’’). The
Securities Exchange Act of 1934
• Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2
migration of ISE to the Nasdaq INET
to Secretary, Securities and Exchange architecture would result in higher
notice is hereby given that on December performance, scalability, and more
Commission, 100 F Street NE., 22, 2016, the International Securities
Washington, DC 20549–1090. robust architecture. With this system
Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) migration, the Exchange intends to
All submissions should refer to File filed with the Securities and Exchange
Number SR–FINRA–2016–048. This file adopt certain trading functionality
Commission (‘‘SEC’’ or ‘‘Commission’’) currently utilized at Nasdaq Exchanges.
number should be included on the the proposed rule change as described
subject line if email is used. To help the The functionality being adopted is
in Items I and II below, which Items described in this filing.
Commission process and review your have been prepared by the Exchange.
comments more efficiently, please use The Commission is publishing this Generally
only one method. The Commission will notice to solicit comments on the
post all comments on the Commission’s With the re-platform, the Exchange
proposed rule change from interested
Internet Web site (http://www.sec.gov/ will now be built on the Nasdaq INET
persons.
rules/sro.shtml). Copies of the architecture, which allows certain
submission, all subsequent I. Self-Regulatory Organization’s trading system functionality to be
amendments, all written statements Statement of the Terms of Substance of performed in parallel. The Exchange
the Proposed Rule Change believes that this architecture change
srobinson on DSK5SPTVN1PROD with NOTICES

with respect to the proposed rule
change that are filed with the The Exchange proposes to amend the will improve the member experience by
Commission, and all written Supplementary Material to ISE Rule reducing overall latency compared to
communications relating to the 1901, titled ‘‘Order Protection’’ in the current ISE, ISE Gemini, LLC and
proposed rule change between the ISE Mercury, LLC system because of the
10 17 CFR 200.30–3(a)(12). manner in which the system is
8 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). segregated into component parts to
9 17 CFR 240.19b–4(f)(2). 2 17 CFR 240.19b–4. handle processing.

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Document Created: 2016-12-30 05:16:33
Document Modified: 2016-12-30 05:16:33
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 96530