83 FR 42739 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Options Regulatory Fee

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 164 (August 23, 2018)

Page Range		42739-42741
FR Document		2018-18164
Federal Register, Volume 83 Issue 164 (Thursday, August 23, 2018)
[Federal Register Volume 83, Number 164 (Thursday, August 23, 2018)]
[Notices]
[Pages 42739-42741]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-18164]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83879; File No. SR-CboeBZX-2018-063]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
the Options Regulatory Fee

August 17, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on August 10, 2018, Cboe BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. The 
Exchange has designated the proposed rule change as one establishing or 
changing a member due, fee, or other charge imposed by the Exchange 
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposed rule change effective upon 
filing with 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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Self-Regulatory Organization's Statement of the Terms of Substance of 
the Proposed Rule Change

    The Exchange filed a proposal to amend its fee schedule related to 
the Options Regulatory Fee.
    The text of the proposed rule change is available at the Exchange's 
website at www.markets.cboe.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange 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. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant parts of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to modify the fee schedule applicable to the 
Exchange's options platform (``BZX Options'') to amend the rate of its 
Options Regulatory Fee (``ORF'').\5\ Currently, the Exchange charges an 
ORF in the amount of $0.0005 per contract side. The Exchange proposes 
to decrease the amount of ORF from $0.0005 per contract side to $0.0002 
per contract side. The proposed change to ORF should continue to 
balance the Exchange's regulatory expenses against the anticipated 
revenue.
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    \5\ The Exchange initially filed the proposed fee change on 
August 1, 2018 (SR-CboeEDGX-2018-028) for August 1, 2018 
effectiveness. On business date August 9, 2018, the Exchange 
withdrew that SR-CboeBZX-2018-055 and submitted SR-CboeBZX-2018-062 
in its place. On business date August 10, 2018 the Exchange withdrew 
SR-CboeBZX-2018-062 and submitted this filing.
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    The ORF is assessed by the Exchange on each Member for options 
transactions cleared by the Member that are cleared by the Options 
Clearing Corporation (OCC) in the customer range, regardless of the 
exchange on which the transaction occurs. In other words, the Exchange 
imposes the ORF on all customer-range transactions cleared by a Member, 
even if the transactions do not take place on the Exchange. The ORF is 
collected by OCC on behalf of the Exchange from the Clearing Member or 
non-Clearing Member that ultimately clears the transaction. With 
respect to linkage transactions, the Exchange reimburses its routing 
broker providing Routing Services for options regulatory fees it incurs 
in connection with the Routing Services it provides.
    Revenue generated from ORF, when combined with all of the 
Exchange's other regulatory fees and fines, is designed to recover a 
material portion of the regulatory costs to the Exchange of the 
supervision and regulation of Member customer options business. 
Regulatory costs include direct regulatory expenses and certain 
indirect expenses for work allocated in support of the regulatory 
function. The direct expenses include in-house and third party service 
provider costs to support the day to day regulatory work such as 
surveillances, investigations and examinations. The indirect expenses 
include support from such areas as human resources, legal, information 
technology and accounting. These indirect expenses are estimated to be 
approximately 10% of BZX Options' total regulatory costs for 2018. 
Thus, direct expenses are estimated to be approximately 90% of total 
regulatory costs for 2018. In addition, it is BZX Options' practice 
that revenue generated from ORF not exceed more than 75% of total 
annual regulatory costs. These expectations are estimated, preliminary 
and may change. There can be no assurance that our final costs for 2018 
will not differ materially from these expectations and prior practice; 
however, the Exchange believes that revenue generated from the ORF, 
when combined with all of the Exchange's other regulatory fees and 
fines, will cover a material portion, but not all, of the Exchange's 
regulatory costs.\6\
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    \6\ The Exchange notes that its regulatory responsibilities with 
respect to compliance with options sales practice rules has been 
allocated to the Financial Industry Regulatory Authority, Inc. 
(``FINRA'') under a 17d-2 Agreement. The ORF is not designed to 
cover the cost of options sales practice regulation.
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    The Exchange will continue to monitor the amount of revenue 
collected from the ORF to ensure that it, in combination with its other 
regulatory fees and fines, does not exceed the Exchange's total 
regulatory costs. The Exchange monitors its regulatory costs and 
revenues at a minimum on a semi-annual basis. If the Exchange

[[Page 42740]]

determines regulatory revenues exceed or are insufficient to cover a 
material portion of its regulatory costs, the Exchange will adjust the 
ORF by submitting a fee change filing to the Commission. The Exchange 
notifies Members of adjustments to the ORF via regulatory circular. The 
Exchange provides Members with such notice at least 30 calendar days 
prior to the effective date of the change.
    The Exchange lastly proposes a couple of minor clean up changes to 
the Fees Schedule. Particularly, the ORF is listed as being $0.0009 per 
contract through January 31, 2018 and $0.0005 per contract effective 
February 1, 2018. As these dates have passed and the ORF is now simply 
$0.0002 per contract, the Exchange proposes to delete the reference to 
the ORF being $0.0009 per contract through January 31, 2018 and the 
February 1, 2018 effective date of the $0.0005 per contract ORF.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder that are applicable to a national securities exchange, and, 
in particular, with the requirements of Section 6 of the Act.\7\ 
Specifically, the Exchange believes that the proposed rule change is 
consistent with Section 6(b)(4) of the Act,\8\ in that it provides for 
the equitable allocation of reasonable dues, fees and other charges 
among members and other persons using its facilities. The Exchange 
notes that it operates in a highly competitive market in which market 
participants can readily direct order flow to competing venues or 
providers of routing services if they deem fee levels to be excessive.
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    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes the decreased ORF is equitable and not 
unfairly discriminatory because it would be objectively allocated to 
Members in that it would be charged to all Members on all their 
transactions that clear as customer transactions at the OCC. The 
Exchange believes that decreasing the ORF is reasonable because the 
Exchange's collection of ORF needs to be balanced against the amount of 
regulatory revenue collected by the Exchange. The Exchange believes 
that the proposed adjustment noted herein will serve to continue to 
balance the Exchange's regulatory revenue against its anticipated 
regulatory costs.
    The Exchange has designed the ORF to generate revenues that, when 
combined with all of the Exchange's other regulatory fees, will be less 
than or equal to the Exchange's regulatory costs, which is consistent 
with the Commission's view that regulatory fees be used for regulatory 
purposes and not to support the Exchange's business side. In this 
regard, the Exchange believes that the decreased level of the fee is 
reasonable and appropriate.
    The Exchange believes the proposal to eliminate obsolete language 
with respect to past ORF rates maintains clarity in the rules and 
alleviates potential confusion, thereby protecting investors and the 
public interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. This proposal does not create 
an unnecessary or inappropriate intra-market burden on competition 
because the ORF applies to all customer activity, thereby raising 
regulatory revenue to offset regulatory expenses. It also supplements 
the regulatory revenue derived from non-customer activity. This 
proposal does not create an unnecessary or inappropriate inter-market 
burden on competition because it is a regulatory fee that supports 
regulation in furtherance of the purposes of the Act. The Exchange is 
obligated to ensure that the amount of regulatory revenue collected 
from the ORF, in combination with its other regulatory fees and fines, 
does not exceed regulatory costs.

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

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any written comments from members or other interested parties.

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 \9\ and paragraph (f) of Rule 19b-4 
thereunder.\10\ 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f).
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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 No. SR-CboeBZX-2018-063 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-CboeBZX-2018-063. 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 website (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 website 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 the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File No. SR-CboeBZX-2018-063, and should be submitted 
on or before September 13, 2018.


[[Page 42741]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-18164 Filed 8-22-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 164 / Thursday, August 23, 2018 / Notices 42739

proposed rule change between the proposed rule change effective upon words, the Exchange imposes the ORF
Commission and any person, other than filing with the Commission. The on all customer-range transactions
those that may be withheld from the Commission is publishing this notice to cleared by a Member, even if the
public in accordance with the solicit comments on the proposed rule transactions do not take place on the
provisions of 5 U.S.C. 552, will be change from interested persons. Exchange. The ORF is collected by OCC
available for website viewing and on behalf of the Exchange from the
Self-Regulatory Organization’s
printing in the Commission’s Public Clearing Member or non-Clearing
Statement of the Terms of Substance of
Reference Room, 100 F Street NE, Member that ultimately clears the
the Proposed Rule Change
Washington, DC 20549, on official transaction. With respect to linkage
business days between the hours of The Exchange filed a proposal to transactions, the Exchange reimburses
10:00 a.m. and 3:00 p.m. Copies of the amend its fee schedule related to the its routing broker providing Routing
filing also will be available for Options Regulatory Fee. Services for options regulatory fees it
inspection and copying at the principal The text of the proposed rule change incurs in connection with the Routing
office of the Exchange. All comments is available at the Exchange’s website at Services it provides.
received will be posted without change. www.markets.cboe.com, at the principal Revenue generated from ORF, when
Persons submitting comments are office of the Exchange, and at the combined with all of the Exchange’s
cautioned that we do not redact or edit Commission’s Public Reference Room. other regulatory fees and fines, is
personal identifying information from II. Self-Regulatory Organization’s designed to recover a material portion of
comment submissions. You should Statement of the Purpose of, and the regulatory costs to the Exchange of
submit only information that you wish Statutory Basis for, the Proposed Rule the supervision and regulation of
to make available publicly. All Change Member customer options business.
submissions should refer to File No. Regulatory costs include direct
SR–CboeEDGX–2018–034, and should In its filing with the Commission, the regulatory expenses and certain indirect
be submitted on or before September 13, Exchange included statements expenses for work allocated in support
2018. concerning the purpose of and basis for of the regulatory function. The direct
the proposed rule change and discussed expenses include in-house and third
For the Commission, by the Division of
any comments it received on the party service provider costs to support
Trading and Markets, pursuant to delegated
authority.11 proposed rule change. The text of these the day to day regulatory work such as
Eduardo A. Aleman,
statements may be examined at the surveillances, investigations and
places specified in Item IV below. The examinations. The indirect expenses
Assistant Secretary.
Exchange has prepared summaries, set include support from such areas as
[FR Doc. 2018–18166 Filed 8–22–18; 8:45 am]
forth in Sections A, B, and C below, of human resources, legal, information
BILLING CODE 8011–01–P
the most significant parts of such technology and accounting. These
statements. indirect expenses are estimated to be
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s approximately 10% of BZX Options’
COMMISSION Statement of the Purpose of, and the total regulatory costs for 2018. Thus,
Statutory Basis for, the Proposed Rule direct expenses are estimated to be
[Release No. 34–83879; File No. SR– approximately 90% of total regulatory
CboeBZX–2018–063] Change
costs for 2018. In addition, it is BZX
1. Purpose Options’ practice that revenue generated
Self-Regulatory Organizations; Cboe
The Exchange proposes to modify the from ORF not exceed more than 75% of
BZX Exchange, Inc.; Notice of Filing
fee schedule applicable to the total annual regulatory costs. These
and Immediate Effectiveness of a
Exchange’s options platform (‘‘BZX expectations are estimated, preliminary
Proposed Rule Change To Amend the
Options’’) to amend the rate of its and may change. There can be no
Options Regulatory Fee
Options Regulatory Fee (‘‘ORF’’).5 assurance that our final costs for 2018
August 17, 2018. Currently, the Exchange charges an ORF will not differ materially from these
Pursuant to Section 19(b)(1) of the in the amount of $0.0005 per contract expectations and prior practice;
Securities Exchange Act of 1934 (the side. The Exchange proposes to decrease however, the Exchange believes that
‘‘Act’’),1 and Rule 19b–4 thereunder,2 the amount of ORF from $0.0005 per revenue generated from the ORF, when
notice is hereby given that on August contract side to $0.0002 per contract combined with all of the Exchange’s
10, 2018, Cboe BZX Exchange, Inc. (the side. The proposed change to ORF other regulatory fees and fines, will
‘‘Exchange’’ or ‘‘BZX’’) filed with the should continue to balance the cover a material portion, but not all, of
Securities and Exchange Commission Exchange’s regulatory expenses against the Exchange’s regulatory costs.6
(‘‘Commission’’) the proposed rule the anticipated revenue. The Exchange will continue to
change as described in Items I, II and III The ORF is assessed by the Exchange monitor the amount of revenue
below, which Items have been prepared on each Member for options collected from the ORF to ensure that it,
by the Exchange. The Exchange has transactions cleared by the Member that in combination with its other regulatory
designated the proposed rule change as are cleared by the Options Clearing fees and fines, does not exceed the
one establishing or changing a member Corporation (OCC) in the customer Exchange’s total regulatory costs. The
due, fee, or other charge imposed by the range, regardless of the exchange on Exchange monitors its regulatory costs
Exchange under Section 19(b)(3)(A)(ii) which the transaction occurs. In other and revenues at a minimum on a semi-
of the Act 3 and Rule 19b–4(f)(2) annual basis. If the Exchange
daltland on DSKBBV9HB2PROD with NOTICES

thereunder,4 which renders the 5 The Exchange initially filed the proposed fee

change on August 1, 2018 (SR–CboeEDGX–2018– 6 The Exchange notes that its regulatory

028) for August 1, 2018 effectiveness. On business responsibilities with respect to compliance with
11 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
date August 9, 2018, the Exchange withdrew that options sales practice rules has been allocated to
SR–CboeBZX–2018–055 and submitted SR– the Financial Industry Regulatory Authority, Inc.
2 17 CFR 240.19b–4.
CboeBZX–2018–062 in its place. On business date (‘‘FINRA’’) under a 17d–2 Agreement. The ORF is
3 15 U.S.C. 78s(b)(3)(A)(ii).
August 10, 2018 the Exchange withdrew SR– not designed to cover the cost of options sales
4 17 CFR 240.19b–4(f)(2). CboeBZX–2018–062 and submitted this filing. practice regulation.

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Federal Register / Vol. 83, No. 164 / Thursday, August 23, 2018 / Notices 42741

For the Commission, by the Division of in Item IV below. FINRA has prepared amount of firms and service bureaus
Trading and Markets, pursuant to delegated summaries, set forth in sections A, B, will continue to migrate to FIX.6 FINRA
authority.11 and C below, of the most significant also believes that removing CTCI as a
Eduardo A. Aleman, aspects of such statements. means of connectivity will reduce
Assistant Secretary. operational overhead and risk for
A. Self-Regulatory Organization’s
[FR Doc. 2018–18164 Filed 8–22–18; 8:45 am]
Statement of the Purpose of, and the FINRA.
BILLING CODE 8011–01–P
Statutory Basis for, the Proposed Rule Accordingly, FINRA is proposing to
Change amend Rule 7730 to remove CTCI as a
means of connectivity for members to
SECURITIES AND EXCHANGE 1. Purpose report transactions to TRACE.7 FINRA
COMMISSION FINRA is proposing to amend Rule intends to provide ample time, until
[Release No. 34–83868; File No. SR–FINRA– 7730 (Trade Reporting and Compliance February 3, 2020, to allow firms that
2018–030] Engine (TRACE)) to remove Computer- still use CTCI as a means of connectivity
to-Computer Interface (‘‘CTCI’’) as a to migrate, and will permit members to
Self-Regulatory Organizations; technological means of connectivity for migrate at any point throughout the
Financial Industry Regulatory use in reporting transactions to TRACE. implementation period. During that
Authority, Inc.; Notice of Filing of a Technology and connectivity options timeframe, FINRA also will engage in
Proposed Rule Change To Amend have evolved since the inception of the extensive outreach with the industry to
FINRA Rule 7730 (Trade Reporting and TRACE system (at which time CTCI, assist in migration awareness and
Compliance Engine (TRACE)) To rather than Financial Information efforts.8
Remove Computer-to-Computer eXchange (‘‘FIX’’), was made available If the Commission approves the
Interface as a Technological Option for for TRACE reporting purposes).3 FINRA proposed rule change, the effective date
TRACE Reporting has determined that it is now of the proposed rule change will be
appropriate to remove CTCI—a Nasdaq February 3, 2020.
August 17, 2018. proprietary protocol—as a means of
Pursuant to Section 19(b)(1) of the connectivity. Accordingly, firms would 2. Statutory Basis
Securities Exchange Act of 1934 be required to report transactions to FINRA believes that the proposed rule
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 TRACE using one of the remaining change is consistent with the provisions
notice is hereby given that on August currently available options: (i) Web of Section 15A(b)(6) of the Act,9 which
15, 2018, Financial Industry Regulatory browser access; (ii) FIX line access; or requires, among other things, that
Authority, Inc. (‘‘FINRA’’) filed with the (iii) indirectly via third-party FINRA rules must be designed to
Securities and Exchange Commission intermediaries (e.g., service bureaus).4 prevent fraudulent and manipulative
(‘‘Commission’’) the proposed rule FINRA notes that FIX—an industry acts and practices, to promote just and
change as described in Items I, II, and standard protocol—is an immediately equitable principles of trade, and, in
III below, which Items have been available and viable alternative to CTCI general, to protect investors and the
prepared by FINRA. The Commission is that already is widely used by members. public interest.
publishing this notice to solicit Since adding FIX as a protocol for FINRA is proposing to amend Rule
comments on the proposed rule change transaction reporting to TRACE in 2011 7730 to remove CTCI as a means of
from interested persons. for Securitized Products (and for connectivity for members to report
I. Self-Regulatory Organization’s corporates and Agency Debt Securities transactions to TRACE. FINRA does not
Statement of the Terms of Substance of in 2012), approximately two thirds of believe the proposed rule change will
the Proposed Rule Change firms with direct connections, and half have a significant impact, as a majority
of the service bureaus, have opted to of members already use FIX as a means
FINRA is proposing to amend FINRA migrate from CTCI to FIX. In fact, the of connectivity to report trades to
Rule 7730 to modify the technological majority of members that report trades TRACE, and FINRA believes that an
connectivity options available to to TRACE currently connect via FIX,5 increasing amount of members and
members for reporting transactions to and FINRA believes that an increasing service providers are migrating to
TRACE. exclusive use of FIX. FIX is an industry
The text of the proposed rule change 3 See Securities Exchange Act Release No. 42201
standard protocol that is an immediately
is available on FINRA’s website at (December 3, 1999), 64 FR 69305 (December 10,
available and viable alternative for the
http://www.finra.org, at the principal 1999) (Notice of Filing of File No. SR–NASD–99–
65). minority of members who directly use
office of FINRA and at the 4 See Rule 7730. CTCI as a means of connectivity to
Commission’s Public Reference Room. 5 Currently, 61 members have direct FIX report transactions to TRACE.
II. Self-Regulatory Organization’s connections for TRACE reporting, 32 have direct
CTCI connections, and 709 members have web
Statement of the Purpose of, and browser access (the 709 firms with web browser
6 For example, members may report trades to the

Statutory Basis for, the Proposed Rule access also may have CTCI or FIX access for recently approved second FINRA/Nasdaq Trade
Reporting Facility via FIX but firms will not have
Change connecting to TRACE). The top five members that
the option to report trades via CTCI. See Securities
connect through CTCI for reporting transactions to
In its filing with the Commission, TRACE represent 63% of all TRACE reports Exchange Act Release No. 83082 (April 20, 2018),
83 FR 18379 (April 26, 2018) (Notice of Filing of
FINRA included statements concerning submitted directly using a CTCI connection. In
File No. SR–FINRA–2018–013).
the purpose of and basis for the addition, five service bureaus report to TRACE
7 FINRA will be eliminating CTCI as a means of
through CTCI connections and five report through
proposed rule change and discussed any
daltland on DSKBBV9HB2PROD with NOTICES

FIX connections. The five service bureaus that use connectivity for reporting to all FINRA trade
comments it received on the proposed CTCI report transactions to TRACE on behalf of 191 reporting facilities.
8 In addition to general outreach (industry-wide
rule change. The text of these statements members in aggregate, with over 95% of these
transaction reports received from one service calls and a Technical Notice), FINRA will contact
may be examined at the places specified each individual firm that directly reports to TRACE
bureau. For all TRACE-eligible securities,
approximately 33% of all transaction reports are via CTCI by email and telephone to provide
11 17 CFR 200.30–3(a)(12). received via CTCI, which consists of 23% submitted information and assistance in connection with the
1 15 U.S.C. 78s(b)(1). migration.
by members with direct CTCI connections and 10%
2 17 CFR 240.19b–4. by service bureaus connected via CTCI. 9 15 U.S.C. 78o–3(b)(6).

VerDate Sep<11>2014 19:43 Aug 22, 2018 Jkt 244001 PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 E:\FR\FM\23AUN1.SGM 23AUN1
Document Created: 2018-08-23 00:33:23
Document Modified: 2018-08-23 00:33:23
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		83 FR 42739