82 FR 29620 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Waive Certain TRACE Reporting Fees
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 124 (June 29, 2017)
Federal Register Volume 82, Issue 124 (June 29, 2017)
| Page Range | 29620-29622 | |
| FR Document | 2017-13584 |
[Federal Register Volume 82, Number 124 (Thursday, June 29, 2017)] [Notices] [Pages 29620-29622] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-13584] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81009; File No. SR-FINRA-2017-022] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Waive Certain TRACE Reporting Fees June 23, 2017. 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 June 21, 2017, 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 the Substance of the Proposed Rule Change FINRA is proposing to waive fees under Rule 7730 for trade reporting to the Trade Reporting and Compliance Engine (``TRACE'') due to a TRACE system issue on February 16, 2017 and February 17, 2017. The proposed rule change does not make any changes to the text of FINRA rules. 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 Rule 6730 (Transaction Reporting) generally requires that members report trades in TRACE-Eligible Securities \5\ to TRACE. FINRA assesses fees in connection with TRACE reporting pursuant to Rule 7730, including for reporting trades, cancelling or correcting previously reported trades, and late reporting, as summarized below: --------------------------------------------------------------------------- \5\ Rule 6710 provides that ``TRACE-Eligible Security'' means a debt security that is United States (``U.S.'') dollar-denominated and is: (1) Issued by a U.S. or foreign private issuer, and, if a ``restricted security'' as defined in Securities Act Rule 144(a)(3), sold pursuant to Securities Act Rule 144A; (2) issued or guaranteed by an Agency as defined in paragraph (k) or a Government-Sponsored Enterprise as defined in paragraph (n); or (3) a U.S. Treasury Security as defined in paragraph (p), but does not include a debt security that is issued by a foreign sovereign or a Money Market Instrument as defined in paragraph (o). ------------------------------------------------------------------------ ------------------------------------------------------------------------ Trades up to and including $0.475/trade. For Securitized Products $200,000 par value. where par value is not used to determine the size (volume) of a transaction, for purposes of trade reporting fees, size (volume) is the lesser of original face value or Remaining Principal Balance (or the equivalent) at the Time of Execution of the transaction. [[Page 29621]] Trades over $200,000 and up $0.000002375 times the par value of the to and including $999,999.99 transaction (i.e., $0.002375/$1000). par value. Trades of $1,000,000 par $2.375/trade. value or more. All transactions in $1.50/trade. Securitized Products that are Agency Pass-Through Mortgage-Backed Securities traded to be announced or SBA-Backed ABS traded to be announced. Cancel/Correct............... $1.50/trade. ``As/of'' Trade Late......... $3/trade. ------------------------------------------------------------------------ FINRA rules also provide that FINRA will disseminate information on all reported transactions for public transparency, unless the transaction is not subject to dissemination pursuant to Rule 6750 (Dissemination of Transaction Information). FINRA is filing the instant proposed rule change to waive member trade reporting fees, cancel/ correct fees, and as-of/late fees in connection with a TRACE system issue that resulted in a number of transactions not being disseminated. Specifically, on February 16, 2017 and February 17, 2017, due to an inadvertent change to the configuration settings for a single TRACE- Eligible Security, the TRACE system did not disseminate 68 trades that were subject to dissemination. On February 21, 2017, FINRA contacted the 12 members that reported the affected transactions and requested that these trades be cancelled and re-reported so that the transactions would be properly disseminated. All impacted trades were cancelled and re-reported between February 21st and February 23rd. In addition to the original trade reporting fees, impacted members were assessed trade reporting fees in connection with the corrective actions necessary to facilitate dissemination. To ensure that members are not charged for such additional submissions, FINRA is proposing to waive the TRACE reporting fees under Rule 7730 that were associated with the corrective trade reports between February 21st and February 23rd, including transaction reporting fees, cancel/correct fees, and as-of/late fees. Because the pertinent billing cycle ended on February 28, 2017, members impacted by the system glitch will receive appropriate credits during the July 2017 billing cycle. FINRA believes it is equitable to provide this relief to members. FINRA has filed the proposed rule change for immediate effectiveness. The operative date will be the date of filing. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(5) of the Act,\6\ 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. FINRA believes that the proposed rule change to waive trade reporting fees under Rule 7730, as described herein, is appropriate in light of the TRACE system issue on February 16, 2017 and February 17, 2017. FINRA does not believe that members should incur fees resulting from corrective trade reports submitted following the TRACE systems issue. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78o-3(b)(5). --------------------------------------------------------------------------- FINRA believes that this limited waiver results in reasonable fees that are equitably allocated. In addition, the proposed trade reporting fee waiver does not unfairly discriminate between or among members in that the waiver is available to any impacted member that reported impacted transactions to TRACE on the relevant dates and who took the requested corrective actions that resulted in additional fees. 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 to waive the trade reporting fees is appropriate in light of the TRACE systems issue, which required members to take corrective action and resubmit transaction reports to TRACE. FINRA believes that the limited trade reporting fee waiver would not place an unreasonable fee burden on members, nor confer an uncompetitive benefit to members that have their trade reporting fees waived, in that such waiver would be applied only to the members that incurred additional TRACE fees in connection with the cancellation and re-reporting of impacted transactions. 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 \7\ and paragraph (f)(2) of Rule 19b-4 thereunder.\8\ 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. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A). \8\ 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 rule-comments@sec.gov. Please include File No. SR-FINRA-2017-022 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 No. SR-FINRA-2017-022. 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 [[Page 29622]] 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 No. SR-FINRA-2017-022, and should be submitted on or before July 20, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\ --------------------------------------------------------------------------- \9\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-13584 Filed 6-28-17; 8:45 am] BILLING CODE 8011-01-P
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proposed rule change operative upon proposed rule change between the prepared by FINRA. FINRA has
filing.22 Commission and any person, other than designated the proposed rule change as
At any time within 60 days of the those that may be withheld from the ‘‘establishing or changing a due, fee or
filing of such proposed rule change, the public in accordance with the other charge’’ under Section
Commission summarily may provisions of 5 U.S.C. 552, will be 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
temporarily suspend such rule change if available for Web site viewing and 4(f)(2) thereunder,4 which renders the
it appears to the Commission that such printing in the Commission’s Public proposal effective upon receipt of this
action is necessary or appropriate in the Reference Room, 100 F Street NE., filing by the Commission. The
public interest, for the protection of Washington, DC 20549 on official Commission is publishing this notice to
investors, or otherwise in furtherance of business days between the hours of solicit comments on the proposed rule
the purposes of the Act. If the 10:00 a.m. and 3:00 p.m. Copies of such change from interested persons.
Commission takes such action, the filing also will be available for
Commission shall institute proceedings I. Self-Regulatory Organization’s
inspection and copying at the principal
under Section 19(b)(2)(B) 23 of the Act to Statement of the Terms of the Substance
office of the Exchange. All comments
determine whether the proposed rule of the Proposed Rule Change
received will be posted without change;
change should be approved or the Commission does not edit personal FINRA is proposing to waive fees
disapproved. identifying information from under Rule 7730 for trade reporting to
IV. Solicitation of Comments submissions. You should submit only the Trade Reporting and Compliance
information that you wish to make Engine (‘‘TRACE’’) due to a TRACE
Interested persons are invited to available publicly. All submissions system issue on February 16, 2017 and
submit written data, views, and should refer to File No. SR–NYSE– February 17, 2017. The proposed rule
arguments concerning the foregoing, 2017–25, and should be submitted on or change does not make any changes to
including whether the proposed rule before July 20, 2017. the text of FINRA rules.
change is consistent with the Act.
For the Commission, by the Division of II. Self-Regulatory Organization’s
Comments may be submitted by any of
Trading and Markets, pursuant to delegated Statement of the Purpose of, and
the following methods: authority.24 Statutory Basis for, the Proposed Rule
Electronic Comments Eduardo A. Aleman, Change
• Use the Commission’s Internet Assistant Secretary.
In its filing with the Commission,
comment form (http://www.sec.gov/ [FR Doc. 2017–13588 Filed 6–28–17; 8:45 am]
FINRA included statements concerning
rules/sro.shtml); or BILLING CODE 8011–01–P
the purpose of and basis for the
• Send an email to rule-comments@
proposed rule change and discussed any
sec.gov. Please include File No. SR–
SECURITIES AND EXCHANGE comments it received on the proposed
NYSE–2017–25 on the subject line.
COMMISSION rule change. The text of these statements
Paper Comments may be examined at the places specified
• Send paper comments in triplicate [Release No. 34–81009; File No. SR–FINRA– in Item IV below. FINRA has prepared
to Secretary, Securities and Exchange 2017–022] summaries, set forth in sections A, B,
Commission, 100 F Street NE., and C below, of the most significant
Self-Regulatory Organizations; aspects of such statements.
Washington, DC 20549–1090. Financial Industry Regulatory
All submissions should refer to File No. Authority, Inc.; Notice of Filing and A. Self-Regulatory Organization’s
SR–NYSE–2017–25. This file number Immediate Effectiveness of Proposed Statement of the Purpose of, and
should be included on the subject line Rule Change To Waive Certain TRACE Statutory Basis for, the Proposed Rule
if email is used. To help the Reporting Fees Change
Commission process and review your
June 23, 2017. 1. Purpose
comments more efficiently, please use
only one method. The Commission will Pursuant to Section 19(b)(1) of the FINRA Rule 6730 (Transaction
post all comments on the Commission’s Securities Exchange Act of 1934 Reporting) generally requires that
Internet Web site (http://www.sec.gov/ (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 members report trades in TRACE-
rules/sro.shtml). Copies of the notice is hereby given that on June 21, Eligible Securities 5 to TRACE. FINRA
submission, all subsequent 2017, Financial Industry Regulatory assesses fees in connection with TRACE
amendments, all written statements Authority, Inc. (‘‘FINRA’’) filed with the reporting pursuant to Rule 7730,
with respect to the proposed rule Securities and Exchange Commission including for reporting trades,
change that are filed with the (‘‘SEC’’ or ‘‘Commission’’) the proposed cancelling or correcting previously
Commission, and all written rule change as described in Items I, II, reported trades, and late reporting, as
communications relating to the and III below, which Items have been summarized below:
Trades up to and including $200,000 par value $0.475/trade. For Securitized Products where par value is not used to determine the size (vol-
ume) of a transaction, for purposes of trade reporting fees, size (volume) is the lesser of
original face value or Remaining Principal Balance (or the equivalent) at the Time of Execu-
tion of the transaction.
sradovich on DSK3GMQ082PROD with NOTICES
22 For purposes only of waiving the 30-day 2 17 CFR 240.19b–4. Rule 144(a)(3), sold pursuant to Securities Act Rule
operative delay, the Commission has considered the 3 15 U.S.C. 78s(b)(3)(A)(ii). 144A; (2) issued or guaranteed by an Agency as
proposed rule’s impact on efficiency, competition, 4 17 CFR 240.19b–4(f)(2). defined in paragraph (k) or a Government-
and capital formation. See 15 U.S.C. 78c(f). 5 Rule 6710 provides that ‘‘TRACE-Eligible Sponsored Enterprise as defined in paragraph (n);
23 15 U.S.C. 78s(b)(2)(B). Security’’ means a debt security that is United or (3) a U.S. Treasury Security as defined in
24 17 CFR 200.30–3(a)(12). States (‘‘U.S.’’) dollar-denominated and is: (1) paragraph (p), but does not include a debt security
Issued by a U.S. or foreign private issuer, and, if a that is issued by a foreign sovereign or a Money
1 15 U.S.C. 78s(b)(1).
‘‘restricted security’’ as defined in Securities Act Market Instrument as defined in paragraph (o).
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![29622 Federal Register / Vol. 82, No. 124 / Thursday, June 29, 2017 / Notices
only one method. The Commission will The transaction may be consummated governed by the rules of the World
post all comments on the Commission’s on July 13, 2017, the effective date of Trade Organization (WTO) with which
Internet Web site (http://www.sec.gov/ the exemption (30 days after the verified the United States does not have free
rules/sro.shtml). Copies of the notice was filed). trade agreements but with which the
submission, all subsequent If the notice contains false or United States runs significant trade
amendments, all written statements misleading information, the exemption deficits in goods. The Office of the
with respect to the proposed rule is void ab initio. Petitions to revoke the United States Trade Representative
change that are filed with the exemption under 49 U.S.C. 10502(d) (USTR) and the Department of
Commission, and all written may be filed at any time. The filing of Commerce (DoC) are seeking comments
communications relating to the a petition to revoke will not that they will consider as part of these
proposed rule change between the automatically stay the transaction. performance reviews and in the
Commission and any person, other than Petitions for stay must be filed no later preparation of the subsequent report to
those that may be withheld from the than July 6, 2017 (at least seven days the President.
public in accordance with the before the exemption becomes DATES: Written comments are due by
provisions of 5 U.S.C. 552, will be effective). 11:59 p.m. (EDT) on July 31, 2017.
available for Web site viewing and An original and 10 copies of all ADDRESSES: USTR and DoC strongly
printing in the Commission’s Public pleadings, referring to Docket No. FD prefer electronic submissions made
Reference Room, 100 F Street NE., 36129, must be filed with the Surface through the Federal eRulemaking Portal:
Washington, DC 20549 on official Transportation Board, 395 E Street SW., http://www.regulations.gov. Follow the
business days between the hours of Washington, DC 20423–0001. In instructions for submitting comments in
10:00 a.m. and 3:00 p.m. Copies of such addition, one copy of each pleading section II below. The docket number is
filing also will be available for must be served on T. Scott Bannister, USTR–2017–0010. For alternatives to
inspection and copying at the principal 111 SW., Fifty-Sixth St., Des Moines, IA on-line submissions, please contact
office of FINRA. All comments received 50312. Yvonne Jamison, Trade Policy Staff
will be posted without change; the According to IRR, this action is Committee, at (202) 395–3475.
Commission does not edit personal categorically excluded from
FOR FURTHER INFORMATION CONTACT: For
identifying information from environmental review under 49 CFR
procedural questions concerning written
submissions. You should submit only 1105.6(c).
Board decisions and notices are comments, contact Yvonne Jamison at
information that you wish to make (202) 395–3475. Direct all other
available publicly. All submissions available on our Web site at
WWW.STB.GOV. questions regarding this notice to Sloane
should refer to File No. SR–FINRA– Strickler, USTR Office of General
2017–022, and should be submitted on Decided: June 26, 2017. Counsel, at John_Strickler@ustr.eop.gov.
or before July 20, 2017. By the Board, Rachel D. Campbell, SUPPLEMENTARY INFORMATION:
For the Commission, by the Division of Director, Office of Proceedings.
Trading and Markets, pursuant to delegated Marline Simeon, I. Topics on Which USTR and
authority.9 Clearance Clerk. Commerce Seek Information
Eduardo A. Aleman, [FR Doc. 2017–13645 Filed 6–28–17; 8:45 am] To assist USTR and DoC in
Assistant Secretary. BILLING CODE 4915–01–P conducting the performance reviews of
[FR Doc. 2017–13584 Filed 6–28–17; 8:45 am] trade agreements and preparing the
BILLING CODE 8011–01–P report, commenters should submit
OFFICE OF THE UNITED STATES information related to one or more of
TRADE REPRESENTATIVE the following assessments:
a. The performance of individual free
SURFACE TRANSPORTATION BOARD [Docket Number USTR–2017–0010] trade agreements (FTAs) and bilateral
[Docket No. FD 36129]
investment treaties (BITs) to which the
Request for Comments Regarding the United States is a party. There currently
Administration’s Reviews and Report are 14 FTAs in force: https://ustr.gov/
Iowa River Railroad, Inc.—Acquisition to the President on Trade Agreement
and Operation Exemption—Rail Line of trade-agreements/free-trade-
Violations and Abuses agreements.There currently are 40 BITs
North Central Railway Association, Inc.
AGENCY: Office of the United States in force: http://tcc.export.gov/Trade_
Iowa River Railroad, Inc. (IRR), a Trade Representative and the Agreements/Bilateral_Investment_
Class III rail carrier, has filed a verified Department of Commerce Treaties/index.asp.
notice of exemption under 49 CFR ACTION: Request for comments. b. The performance of the WTO
1150.41 to acquire from North Central agreements with regard to our trade
Railway Association, Inc., and operate SUMMARY: Executive Order 13796 of relations with those trading partners
0.59 miles of rail line, between Milepost April 29, 2017 (82 FR 20819), requires with which the United States does not
200.87 and Milepost 201.46, at or near the United States Trade Representative have an FTA, but with which the United
Ackley, in Hardin County, Iowa. and the Secretary of Commerce, in States runs significant trade deficits in
IRR certifies that the projected annual consultation with the Secretary of State, goods. Consistent with the Federal
revenues as a result of this transaction the Secretary of the Treasury, the Register notice regarding the Report on
will not result in the creation of a Class Attorney General, and the Director of Significant Trade Deficits (82 FR 18110),
sradovich on DSK3GMQ082PROD with NOTICES
II or Class I rail carrier and will not the Office of Trade and Manufacturing the trading partners subject to these
exceed $5 million. Policy, to conduct comprehensive performance reviews are in alphabetical
IRR further certifies that the performance reviews of all bilateral, order: China, the European Union,
transaction does not include an plurilateral, and multilateral trade India, Indonesia, Japan, Malaysia,
interchange commitment. agreements and investment agreements Switzerland, Taiwan, Thailand, and
to which the United States is a party Vietnam. You can find a complete list
9 17 CFR 200.30–3(a)(12). and all trade relations with countries of the WTO agreements at https://
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Document Created: 2018-11-14 10:17:18
Document Modified: 2018-11-14 10:17:18
| 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 | 82 FR 29620 |
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