Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify FINRA/Nasdaq Trade Reporting Securities Transaction Credit, 17460-17462 [2010-7694]
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17460
Federal Register / Vol. 75, No. 65 / Tuesday, April 6, 2010 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
Commission may summarily abrogate
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.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.12 However, Rule 19b–
4(f)(6)(iii)13 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay. The Exchange notes that the
proposal will allow the Exchange to
continue receiving inbound routes of
equities orders from Arca Securities, in
a manner consistent with prior
approvals and established protections,
while also permitting the Exchange and
the Commission to assess the impact of
the pilot.14 The Commission believes
that waiving the 30-day operative delay
is consistent with the protection of
investors and the public interest
because such waiver would allow the
pilot period to be extended without
interruption through September 30,
2010. For this reason, the Commission
designates the proposed rule change to
be operative upon filing with the
Commission.15
At any time within 60 days of the
filing of such proposed rule change the
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:
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission written
notice of its intent to file the proposed rule change,
along with a brief description and text of the
proposed rule change, at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
13 Id.
14 See supra note 9 and accompanying text.
15 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2010–19 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2010–19. This
file number should be included on the
subject line if e-mail 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 (https://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 inspection and copying in
the Commission’s Public Reference
Room on official business days between
the hours of 10 a.m. and 3 p.m. Copies
of such filing also will be available for
inspection and copying at the principal
office of the Exchange. 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–
NYSEArca–2010–19 and should be
submitted on or before April 27, 2010.
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–7696 Filed 4–5–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61806; File No. SR–FINRA–
2010–013]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Modify FINRA/Nasdaq
Trade Reporting Securities
Transaction Credit
March 31, 2010.
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 March 26,
2010, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to amend FINRA
Rule 7610A (Securities Transaction
Credit) to modify credits provided to
members that use the FINRA/Nasdaq
Trade Reporting Facility (‘‘FINRA/
Nasdaq TRF’’).
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s Public Reference Room.
16 17
CFR 200.30–3(a)(12).
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).
1 15
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Federal Register / Vol. 75, No. 65 / Tuesday, April 6, 2010 / Notices
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
Background
The FINRA/Nasdaq TRF is a facility
of FINRA that is operated by The
NASDAQ OMX Group, Inc. (‘‘NASDAQ
OMX’’). In connection with the
establishment of the FINRA/Nasdaq
TRF, FINRA and NASDAQ OMX
entered into a limited liability company
agreement (the ‘‘LLC Agreement’’).
Under the LLC Agreement, FINRA, the
‘‘SRO Member,’’ has sole regulatory
responsibility for the FINRA/Nasdaq
TRF. NASDAQ OMX, the ‘‘Business
Member,’’ is primarily responsible for
the management of the FINRA/Nasdaq
TRF’s business affairs, including
establishing pricing for use of the
FINRA/Nasdaq TRF, to the extent those
affairs are not inconsistent with the
regulatory and oversight functions of
FINRA. Additionally, the Business
Member is obligated to pay the cost of
regulation and is entitled to the profits
and losses, if any, derived from the
operation of the FINRA/Nasdaq TRF.
The FINRA/Nasdaq TRF receives
revenue for transactions reported to the
three tapes 5 from the Consolidated Tape
Association and Nasdaq Securities
Information Processor (the ‘‘Tapes’’).
Pursuant to Rule 7610A, FINRA
members are provided with a fractional
share of this revenue based on their
‘‘Market Share.’’ 6 Market Share is
calculated quarterly for each member
based on the transactions attributed to
them in each of the three Tapes. Rule
7610A provides four tiers of revenue
share: 0%, 50%, 80% and 100%.
Eligibility for a tier is based on the
percentage of Market Share, and the
percentage of Market Share required
increases as the tiers of revenue share
increase. Currently, the amount of
Market Share required to receive an
allocation under each tier is different for
each Tape. For example, to receive an
80% share of revenue, a member must
have 0.15% but less than 0.25% of
Market Share if reporting an NYSE
security, 0.25% but less than 0.50% if
reporting an Amex security, or 0.25%
but less than 0.75% if reporting a
Nasdaq security.
Proposed Amendments to Credit
Schedule
NASDAQ OMX, as the FINRA/Nasdaq
TRF Business Member, has determined
to amend the Market Share percentages
for revenue sharing eligibility applicable
to Tapes A and B so that they are
consistent with the current levels of
Tape C. Accordingly, FINRA is
proposing to amend Rule 7610A to
reflect the new credit schedule. The
following table provides a comparison
of the old Market Share tier structure
with the proposed new structure:
Previous tier break point
New tier break point
Revenue
share
(percent)
A
A
A
A
Tier
Tier
Tier
Tier
1
2
3
4
.....................................................................................
.....................................................................................
.....................................................................................
.....................................................................................
=>0.25% .............................
<0.25%, =>0.15% ...............
<0.15%, =>0.10% ...............
<0.10% ...............................
=>0.75% .............................
<0.75%, =>0.25% ...............
<0.25%, =>10% ..................
<0.10% ...............................
100
80
50
0
Tape
Tape
Tape
Tape
B
B
B
B
Tier
Tier
Tier
Tier
1
2
3
4
.....................................................................................
.....................................................................................
.....................................................................................
.....................................................................................
=>0.50% .............................
<0.50%, =>0.25% ...............
<0.25%, =>0.10% ...............
<0.10% ...............................
=>0.75% .............................
<0.75%, =>0.25% ...............
<0.25%, =>0.10% ...............
<0.10% ...............................
100
80
50
0
Tape
Tape
Tape
Tape
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Tape
Tape
Tape
Tape
C
C
C
C
Tier
Tier
Tier
Tier
1
2
3
4
....................................................................................
....................................................................................
....................................................................................
....................................................................................
=>0.75% .............................
<0.75%, =>0.25% ...............
<0.25%, =>0.10% ...............
<0.10% ...............................
=>0.75% .............................
<0.75%, =>0.25% ...............
<0.25%, =>0.10% ...............
<0.10% ...............................
100
80
50
0
The Business Member notes that the
volume and distribution of Market
Share among both Tapes A and B have
matured so that they more closely
resemble the Market Share distribution
of Tape C. As such, the Business
Member believes that it is appropriate to
align the tier structure of Tapes A and
B to that of Tape C.
The Business Member has advised
FINRA that it believes that the proposed
amended credit schedule more
equitably allocates the revenue share
provided to members for their use of the
FINRA/Nasdaq TRF. The proposed rule
change will eliminate the differences in
allocation, thus rewarding each member
consistently for its use of the FINRA/
Nasdaq TRF, irrespective of the Tape to
which the transaction is reported.
Under the proposed credit schedule,
the thresholds for receiving revenue
share under the tiers of Tapes A and B
have increased. As a consequence,
members that have historically qualified
to receive revenue share from Tapes A
and B may no longer qualify for the
same tier, notwithstanding that they
have achieved the same level of Market
Share. The Business Member believes
that this is an appropriate result of
aligning Market Share with the revenues
received from the Tapes for reporting
those transactions.
FINRA has filed the proposed rule
change for immediate effectiveness.
5 Market data is transmitted to three tapes based
on the listing venue of the security: New York Stock
Exchange securities (‘‘Tape A’’), American Stock
Exchange and regional exchange securities (‘‘Tape
B’’), and Nasdaq Stock Market securities (‘‘Tape C’’).
Tape A and Tape B are generally referred to as the
Consolidated Tape.
6 Rule 7610A defines Market Share as a
percentage calculated by dividing the total number
of shares represented by trades reported by a FINRA
member to the FINRA/Nasdaq TRF during a given
calendar quarter by the total number of shares
represented by all trades reported to the
Consolidated Tape Association or the Nasdaq
Securities Information Processor, as applicable,
during that quarter. Market Share is calculated
separately for each tape.
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17462
Federal Register / Vol. 75, No. 65 / Tuesday, April 6, 2010 / Notices
FINRA is proposing that the operative
date of the proposed rule change will be
April 1, 2010.
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. FINRA believes that the
amended credit schedule is fair and
provides an equitable allocation of the
credits provided to the FINRA/Nasdaq
TRF in that it will apply uniformly to
all FINRA members that use the FINRA/
Nasdaq TRF.
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.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or 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)(ii) 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
may summarily abrogate 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.
sroberts on DSKD5P82C1PROD with NOTICES
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
DEPARTMENT OF TRANSPORTATION
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–FINRA–2010–013 on the
subject line.
Surface Transportation Board
Paper Comments
16:37 Apr 05, 2010
AGENCY:
ACTION:
Surface Transportation Board.
Approval of rail cost adjustment
factor.
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
Decided: March 31, 2010.
By the Board, Chairman Elliott, Vice
Chairman Mulvey, and Commissioner
Nottingham.
Jeffrey Herzig,
Clearance Clerk.
SUMMARY: The Board has approved the
second quarter 2010 Rail Cost
Adjustment Factor (RCAF) and cost
index filed by the Association of
All submissions should refer to File
American Railroads. The second quarter
Number SR–FINRA–2010–013. This file
2010 RCAF (Unadjusted) is 1.060. The
number should be included on the
second quarter 2010 RCAF (Adjusted) is
subject line if e-mail is used. To help the 0.477. The second quarter 2010 RCAF–
Commission process and review your
5 is 0.452. As part of its March 30, 2010
comments more efficiently, please use
submission, AAR asks the Board to
only one method. The Commission will ‘‘correct the productivity calculation for
post all comments on the Commission’s the period 2003–2007,’’ and requests
Internet Web site (https://www.sec.gov/
that the Board recalculate earlier RCAF
rules/sro.shtml). Copies of the
(Adjusted) and RCAF–5 values that
submission, all subsequent
were determined with the 2003–2007
amendments, all written statements
productivity adjustment factor. AAR’s
with respect to the proposed rule
additional request will be considered in
change that are filed with the
a separate proceeding.
Commission, and all written
DATES: Effective Date: April 1, 2010.
communications relating to the
proposed rule change between the
FOR FURTHER INFORMATION CONTACT:
Commission and any person, other than Pedro Ramirez, (202) 245–0333. (Federal
Information Relay Service (FIRS) for the
those that may be withheld from the
hearing impaired: 1–800–877–8339.)
public in accordance with the
provisions of 5 U.S.C. 552, will be
SUPPLEMENTARY INFORMATION:
available for Web site viewing and
Additional information is contained in
printing in the Commission’s Public
the Board’s decision, which is available
Reference Room, 100 F Street, NE.,
on our Web site https://www.stb.dot.gov.
Washington, DC 20549, on official
Copies of the decision may be
business days between the hours of 10
purchased by contacting the office of
a.m. and 3 p.m. Copies of such filing
Public Assistance, Governmental
also will be available for inspection and Affairs, and Compliance at (202)–245–
copying at the principal office of
0235. Assistance for the hearing
FINRA. All comments received will be
impaired is available through FIRS at 1–
posted without change; the Commission 800–877–8339.
does not edit personal identifying
This action will not significantly
information from submissions. You
affect either the quality of the human
should submit only information that
environment or energy conservation.
you wish to make publicly available. All
Pursuant to 5 U.S.C. 605(b), we
submissions should refer to File
conclude that our action will not have
Number SR–FINRA–2010–013 and
a significant economic impact on a
should be submitted on or before April
substantial number of small entities
27, 2010.
within the meaning of the Regulatory
Flexibility Act.
For the Commission, by the Division of
[FR Doc. 2010–7694 Filed 4–5–10; 8:45 am]
7 15
VerDate Nov<24>2008
Quarterly Rail Cost Adjustment Factor
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
BILLING CODE 8011–01–P
U.S.C. 78o–3(b)(5).
8 15 U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
[STB Ex Parte No. 290 (Sub-No. 5) (2010–
2)]
[FR Doc. 2010–7684 Filed 4–5–10; 8:45 am]
10 17
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]]>Agencies
[Federal Register Volume 75, Number 65 (Tuesday, April 6, 2010)]
[Notices]
[Pages 17460-17462]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-7694]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61806; File No. SR-FINRA-2010-013]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Modify FINRA/Nasdaq Trade Reporting Securities
Transaction Credit
March 31, 2010.
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 March 26, 2010, 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 7610A (Securities
Transaction Credit) to modify credits provided to members that use the
FINRA/Nasdaq Trade Reporting Facility (``FINRA/Nasdaq TRF'').
The text of the proposed rule change is available on FINRA's Web
site at https://www.finra.org, at the principal office of FINRA and at
the Commission's Public Reference Room.
[[Page 17461]]
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
Background
The FINRA/Nasdaq TRF is a facility of FINRA that is operated by The
NASDAQ OMX Group, Inc. (``NASDAQ OMX''). In connection with the
establishment of the FINRA/Nasdaq TRF, FINRA and NASDAQ OMX entered
into a limited liability company agreement (the ``LLC Agreement'').
Under the LLC Agreement, FINRA, the ``SRO Member,'' has sole regulatory
responsibility for the FINRA/Nasdaq TRF. NASDAQ OMX, the ``Business
Member,'' is primarily responsible for the management of the FINRA/
Nasdaq TRF's business affairs, including establishing pricing for use
of the FINRA/Nasdaq TRF, to the extent those affairs are not
inconsistent with the regulatory and oversight functions of FINRA.
Additionally, the Business Member is obligated to pay the cost of
regulation and is entitled to the profits and losses, if any, derived
from the operation of the FINRA/Nasdaq TRF.
The FINRA/Nasdaq TRF receives revenue for transactions reported to
the three tapes \5\ from the Consolidated Tape Association and Nasdaq
Securities Information Processor (the ``Tapes''). Pursuant to Rule
7610A, FINRA members are provided with a fractional share of this
revenue based on their ``Market Share.'' \6\ Market Share is calculated
quarterly for each member based on the transactions attributed to them
in each of the three Tapes. Rule 7610A provides four tiers of revenue
share: 0%, 50%, 80% and 100%. Eligibility for a tier is based on the
percentage of Market Share, and the percentage of Market Share required
increases as the tiers of revenue share increase. Currently, the amount
of Market Share required to receive an allocation under each tier is
different for each Tape. For example, to receive an 80% share of
revenue, a member must have 0.15% but less than 0.25% of Market Share
if reporting an NYSE security, 0.25% but less than 0.50% if reporting
an Amex security, or 0.25% but less than 0.75% if reporting a Nasdaq
security.
---------------------------------------------------------------------------
\5\ Market data is transmitted to three tapes based on the
listing venue of the security: New York Stock Exchange securities
(``Tape A''), American Stock Exchange and regional exchange
securities (``Tape B''), and Nasdaq Stock Market securities (``Tape
C''). Tape A and Tape B are generally referred to as the
Consolidated Tape.
\6\ Rule 7610A defines Market Share as a percentage calculated
by dividing the total number of shares represented by trades
reported by a FINRA member to the FINRA/Nasdaq TRF during a given
calendar quarter by the total number of shares represented by all
trades reported to the Consolidated Tape Association or the Nasdaq
Securities Information Processor, as applicable, during that
quarter. Market Share is calculated separately for each tape.
---------------------------------------------------------------------------
Proposed Amendments to Credit Schedule
NASDAQ OMX, as the FINRA/Nasdaq TRF Business Member, has determined
to amend the Market Share percentages for revenue sharing eligibility
applicable to Tapes A and B so that they are consistent with the
current levels of Tape C. Accordingly, FINRA is proposing to amend Rule
7610A to reflect the new credit schedule. The following table provides
a comparison of the old Market Share tier structure with the proposed
new structure:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Revenue share
Previous tier break point New tier break point (percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Tape A Tier 1............................ =>0.25%....................................... =>0.75%...................................... 100
Tape A Tier 2............................ <0.25%, =>0.15%............................... <0.75%, =>0.25%.............................. 80
Tape A Tier 3............................ <0.15%, =>0.10%............................... <0.25%, =>10%................................ 50
Tape A Tier 4............................ <0.10%........................................ <0.10%....................................... 0
--------------------------------------------------------------------------------------------------------------------------------------------------------
Tape B Tier 1............................ =>0.50%....................................... =>0.75%...................................... 100
Tape B Tier 2............................ <0.50%, =>0.25%............................... <0.75%, =>0.25%.............................. 80
Tape B Tier 3............................ <0.25%, =>0.10%............................... <0.25%, =>0.10%.............................. 50
Tape B Tier 4............................ <0.10%........................................ <0.10%....................................... 0
--------------------------------------------------------------------------------------------------------------------------------------------------------
Tape C Tier 1............................ =>0.75%....................................... =>0.75%...................................... 100
Tape C Tier 2............................ <0.75%, =>0.25%............................... <0.75%, =>0.25%.............................. 80
Tape C Tier 3............................ <0.25%, =>0.10%............................... <0.25%, =>0.10%.............................. 50
Tape C Tier 4............................ <0.10%........................................ <0.10%....................................... 0
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The Business Member notes that the volume and distribution of
Market Share among both Tapes A and B have matured so that they more
closely resemble the Market Share distribution of Tape C. As such, the
Business Member believes that it is appropriate to align the tier
structure of Tapes A and B to that of Tape C.
The Business Member has advised FINRA that it believes that the
proposed amended credit schedule more equitably allocates the revenue
share provided to members for their use of the FINRA/Nasdaq TRF. The
proposed rule change will eliminate the differences in allocation, thus
rewarding each member consistently for its use of the FINRA/Nasdaq TRF,
irrespective of the Tape to which the transaction is reported.
Under the proposed credit schedule, the thresholds for receiving
revenue share under the tiers of Tapes A and B have increased. As a
consequence, members that have historically qualified to receive
revenue share from Tapes A and B may no longer qualify for the same
tier, notwithstanding that they have achieved the same level of Market
Share. The Business Member believes that this is an appropriate result
of aligning Market Share with the revenues received from the Tapes for
reporting those transactions.
FINRA has filed the proposed rule change for immediate
effectiveness.
[[Page 17462]]
FINRA is proposing that the operative date of the proposed rule change
will be April 1, 2010.
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. FINRA believes that the amended credit schedule is fair and
provides an equitable allocation of the credits provided to the FINRA/
Nasdaq TRF in that it will apply uniformly to all FINRA members that
use the FINRA/Nasdaq TRF.
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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.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or 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)(ii) 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 may summarily abrogate 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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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\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 (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-FINRA-2010-013 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2010-013. This
file number should be included on the subject line if e-mail 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 (https://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 a.m. and 3 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 publicly
available. All submissions should refer to File Number SR-FINRA-2010-
013 and should be submitted on or before April 27, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-7694 Filed 4-5-10; 8:45 am]
BILLING CODE 8011-01-P
