Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend FINRA Rule 7730 To Establish a Fee for the Academic Corporate Bond TRACE Data Product, 76683-76685 [2016-26509]
Download as PDF
Federal Register / Vol. 81, No. 213 / Thursday, November 3, 2016 / Notices
The individual firm benefits of
enhanced risk protections flow
downstream to counterparties both at
the Exchange and at other options
exchanges, which increases systemic
protections as well. The Exchange
believes these risk protections will
allow TPHs to enter orders and quotes
with reduced fear of inadvertent
exposure to excessive risk, which will
benefit investors through increased
liquidity for the execution of their
orders. Without adequate risk
management tools, such as those
proposed in this filing, TPHs could
reduce the amount of order flow and
liquidity they provide. Such actions
may undermine the quality of the
markets available to customers and
other market participants. Accordingly,
the proposed rule change is designed to
encourage TPHs to submit additional
order flow and liquidity to the
Exchange, which may ultimately
promote competition. In addition,
providing TPHs with more tools for
managing risk will facilitate transactions
in securities because, as noted above,
TPHs will have more confidence
protections are in place that reduce the
risks from potential system errors and
market events.
Based on discussions with TPHs
regarding its current and proposed
package of risk controls and price
protection mechanisms, the Exchange
understands TPHs support the
implementation of price protection
mechanisms such as these and expects
TPHs to input settings that are
meaningful so they can take full
advantage of the benefits these
mechanisms are intended to provide.
mstockstill on DSK3G9T082PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the Exchange consents, the Commission
will:
A. By order approve or disapprove
such proposed rule change, or
B. institute proceedings to determine
whether the proposed rule change
should be disapproved.
VerDate Sep<11>2014
17:54 Nov 02, 2016
Jkt 241001
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 email to rule-comments@
sec.gov. Please include File Number SR–
C2–2016–020 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–C2–2016–020. 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 (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
10:00 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;
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–C2–
2016–020, and should be submitted on
or before November 25, 2016.
PO 00000
Frm 00131
Fmt 4703
Sfmt 4703
76683
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.61
Brent J. Fields,
Secretary.
[FR Doc. 2016–26510 Filed 11–2–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79190; File No. SR–FINRA–
2016–040]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend FINRA Rule
7730 To Establish a Fee for the
Academic Corporate Bond TRACE
Data Product
October 28, 2016.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
25, 2016, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared by FINRA. FINRA has
designated the proposed rule change as
‘‘establishing or changing a due, fee or
other charge’’ under Section
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
4(f)(2) thereunder,4 which renders the
proposal effective upon receipt of this
filing by the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to amend FINRA
Rule 7730 to establish a fee for the
Academic Corporate Bond TRACE Data
product.
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s Public Reference Room.
61 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
E:\FR\FM\03NON1.SGM
03NON1
76684
Federal Register / Vol. 81, No. 213 / Thursday, November 3, 2016 / 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 the
Statutory Basis for, the Proposed Rule
Change
mstockstill on DSK3G9T082PROD with NOTICES
1. Purpose
FINRA’s TRACE data product
offerings, set forth in Rule 7730 (Trade
Reporting and Compliance Engine
(TRACE)), include both real-time as well
as historic data for most TRACE-eligible
securities. The SEC recently approved a
new TRACE data product composed of
enhanced historic data available solely
to academics (i.e., requests originating
from an institution of higher
education).5 The new TRACE data
product—Academic Corporate Bond
TRACE Data — will contain transactionlevel data on historic transactions in
corporate bonds and will include
masked counterparty information.6
Specifically, ‘‘Academic Corporate Bond
TRACE Data’’ means historic
transaction-level data on all transactions
in corporate bonds reported to TRACE
(except a transaction that is a List or
Fixed Offering Price Transaction, as
defined in Rule 6710(q), or a Takedown
Transaction, as defined in Rule 6710(r)),
including Rule 144A transactions in
corporate bonds, with elements to be
determined from time to time by FINRA
in its discretion and as stated in a
Regulatory Notice or other equivalent
publication.7
The Academic Corporate Bond
TRACE Data will be delayed a minimum
of 36 months and will not include
Market Participant Identifiers
(‘‘MPIDs’’), but will substitute a masked
dealer identifier for each MPID included
in the data.8 Applicants for Academic
Corporate Bond TRACE Data will be
required to execute appropriate
agreements with FINRA.9
FINRA is now proposing to amend
FINRA Rule 7730 (Trade Reporting and
Compliance Engine (TRACE)) to
establish fees for the Academic
Corporate Bond TRACE Data product.
FINRA is proposing to establish a data
fee of $500 per calendar year (with a
single set-up fee of $500) for receipt of
the Academic Corporate Bond TRACE
Data product. FINRA believes that this
fee is reasonable, and notes that the
subscription fee for the Historic TRACE
Data Sets is $500 per year (per data set),
with a single fee of $1,000 for
development and set-up to receive
Historic TRACE Data for qualifying taxexempt organizations.
FINRA has filed the proposed rule
change for immediate effectiveness. The
effective date of the proposed rule
change will be the date of effectiveness
of the Academic Corporate Bond TRACE
Data product.10
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(5) of the Act,11 which
requires, among other things, that
FINRA rules provide for the equitable
allocation of reasonable dues, fees and
other charges among members and
issuers and other persons using any
facility or system that FINRA operates
or controls.
Pursuant to the proposal, FINRA will
establish fees to make available to
institutions of higher education an
enhanced historic TRACE data product
that will include transaction-level data
on corporate bonds on a 36-month
delayed basis with masked MPIDs.
Academic Corporate Bond TRACE Data
will be made available only to
institutions of higher education for a fee
of $500 per calendar year (with a single
set-up fee of $500). FINRA believes that
the proposed fees are reasonable, and
notes that the fees will be applied
equally to all institutions of higher
education that choose to subscribe to
the data product. Thus, FINRA believes
that the proposed rule change is
consistent with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
9 See
5 See
Securities Exchange Act Release No. 78759
(September 2, 2016), 81 FR 62222 (September 8,
2016) (‘‘Order Approving File No. SR–FINRA–
2016–024’’).
6 See Rule 7730(g)(5).
7 See supra note 6.
8 See supra note 6.
VerDate Sep<11>2014
17:54 Nov 02, 2016
Jkt 241001
Rule 7730(e).
Order Approving File No. SR–FINRA–
2016–024. FINRA will announce the effective date
of the Academic Corporate Bond TRACE Data
product in a Regulatory Notice to be published no
later than 90 days following Commission approval.
The effective date will be no later than 270 days
following publication of that Regulatory Notice.
11 15 U.S.C. 78o–3(b)(5).
10 See
PO 00000
Frm 00132
Fmt 4703
Sfmt 4703
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The proposal
to create a new Academic Corporate
Bond TRACE Data product would not
impose any additional reporting
requirements or costs on firms and, as
a result, would have no direct impact on
firms. The proposal to establish fees in
connection with the new Academic
Corporate Bond TRACE Data product
applies only to institutions of higher
education that choose to subscribe to
the data product, and the proposed fees
will apply equally to all such
subscribers.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
FINRA solicited comment on a
proposal to establish an enhanced
historic data product with masked
dealer identifiers in Regulatory Notice
15–26, including the proposal of a $500
fee per data set and a one-time initial
set-up fee of $500. FINRA received four
comment letters in response to the
Regulatory Notice.12 A copy of the
Regulatory Notice is attached as Exhibit
2a. A list of comment letters received in
response to the Regulatory Notice is
attached as Exhibit 2b. Copies of the
comment letters received in response to
the Regulatory Notice are attached as
Exhibit 2c. Of the four comment letters
received, none of the commenters
discussed the $500 fee per data set or
the single set-up fee of $500.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 13 and paragraph (f)(2) of Rule
19b–4 thereunder.14 At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
12 See Letter from Michael Nicholas, Chief
Executive Officer, Bond Dealers of America, to
Marcia E. Asquith, Corporate Secretary, FINRA,
dated August 24, 2015 (‘‘BDA’’), letter from Luis
Palacios, Director of Research Services, The
Wharton School, to Marcia E. Asquith, Corporate
Secretary, FINRA, dated September 10, 2015
(‘‘Wharton’’), letter from David L. Cohen, Managing
Director & Associate General Counsel, and Sean
Davy, Managing Director, Securities Industry and
Financial Markets Association, to Marcia E.
Asquith, Corporate Secretary, FINRA, dated
September 11, 2015 (‘‘SIFMA’’), and letter from
Carrie Devorah, Founder, The Center for Copyrights
Integrity, to Marcia E. Asquith, Corporate Secretary,
FINRA, dated September 14, 2015 (‘‘CCI’’).
13 15 U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b–4(f)(2).
E:\FR\FM\03NON1.SGM
03NON1
Federal Register / Vol. 81, No. 213 / Thursday, November 3, 2016 / Notices
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.
IV. Solicitation of Comments
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
FINRA–2016–040 on the subject line.
mstockstill on DSK3G9T082PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–FINRA–2016–040. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (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
10:00 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–
17:54 Nov 02, 2016
Jkt 241001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Brent J. Fields,
Secretary.
[FR Doc. 2016–26509 Filed 11–2–16; 8:45 am]
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:
VerDate Sep<11>2014
2016–040, and should be submitted on
or before November 25, 2016.
BILLING CODE 8011–01–P
[Public Notice 9781]
E.O. 13224 Designation of Abu Ali
Tabatabai, aka Abu Ali Tabtabai, aka
Abu ‘Ali Al-Tabataba’i, aka Haytham
‘Ali Tabataba’i, as a Specially
Designated Global Terrorist
Acting under the authority of and in
accordance with section 1(b) of
Executive Order 13224 of September 23,
2001, as amended by Executive
Order13268 of July 2, 2002, and
Executive Order 13284 of January 23,
2003, I hereby determine that the
individual known as Abu Ali Tabatabai,
aka Abu Ali Tabtabai, aka Abu ‘Ali AlTabataba’i, aka Haytham ‘Ali
Tabataba’i,, committed, or poses a
significant risk of committing, acts of
terrorism that threaten the security of
U.S. nationals or the national security,
foreign policy, or economy of the United
States.
Consistent with the determination in
section 10 of Executive Order 13224 that
prior notice to persons determined to be
subject to the Order who might have a
constitutional presence in the United
States would render ineffectual the
blocking and other measures authorized
in the Order because of the ability to
transfer funds instantaneously, I
determine that no prior notice needs to
be provided to any person subject to this
determination who might have a
constitutional presence in the United
States, because to do so would render
ineffectual the measures authorized in
the Order.
This notice shall be published in the
Federal Register.
Dated: September 12, 2016.
John F. Kerry,
Secretary of State.
[FR Doc. 2016–26596 Filed 11–2–16; 8:45 am]
BILLING CODE 4710–AD–P
PO 00000
CFR 200.30–3(a)(12).
Frm 00133
Fmt 4703
DEPARTMENT OF STATE
[Public Notice: 9783]
60-Day Notice of Proposed Information
Collection: Exchange Programs
Alumni Web Site Registration
Notice of request for public
comment.
ACTION:
The Department of State is
seeking Office of Management and
Budget (OMB) approval for the
information collection described below.
In accordance with the Paperwork
Reduction Act of 1995, we are
requesting comments on this collection
from all interested individuals and
organizations. The purpose of this
notice is to allow 60 days for public
comment preceding submission of the
collection to OMB.
DATES: The Department will accept
comments from the public up to January
3, 2017.
ADDRESSES: You may submit comments
by any of the following methods:
• Web: Persons with access to the
Internet may use the Federal Docket
Management System (FDMS) to
comment on this notice by going to
www.Regulations.gov. You can search
for the document by entering the docket
number (DOS–2016–0052) in the Search
bar.
• Email: MessingerCB@state.gov.
• Mail: Bureau of Educational and
Cultural Affairs; U.S. Department of
State; SA–5, Room C2–C20;
Washington, DC 20522–0503.
You must include the DS form
number, information collection title,
and the OMB control number in any
correspondence.
SUMMARY:
DEPARTMENT OF STATE
15 17
76685
Sfmt 4703
FOR FURTHER INFORMATION CONTACT:
Direct requests for additional
information regarding the collection
listed in this notice, including requests
for copies of the proposed collection
instrument and supporting documents,
to Carlyn Messinger, Alumni Outreach
Specialist, Bureau of Educational and
Cultural Affairs; U.S. Department of
State; SA–5, Room C2–C20;
Washington, DC 20522–0503, who may
be reached on 202–632–6183 or at
MessingerCB@state.gov.
SUPPLEMENTARY INFORMATION:
• Title of Information Collection:
Exchange Programs Alumni Web site
Registration.
• OMB Control Number: 1405–0192.
• Type of Request: Revision of an
Approved Request.
• Originating Office: Bureau of
Educational and Cultural Affairs, ECA/
P/A.
• Form Number: DS–7006.
E:\FR\FM\03NON1.SGM
03NON1
Agencies
[Federal Register Volume 81, Number 213 (Thursday, November 3, 2016)]
[Notices]
[Pages 76683-76685]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26509]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79190; File No. SR-FINRA-2016-040]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend FINRA Rule 7730 To Establish a Fee for
the Academic Corporate Bond TRACE Data Product
October 28, 2016.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 25, 2016, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by FINRA. FINRA has
designated the proposed rule change as ``establishing or changing a
due, fee or other charge'' under Section 19(b)(3)(A)(ii) of the Act \3\
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal
effective upon receipt of this filing by the Commission. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to amend FINRA Rule 7730 to establish a fee for
the Academic Corporate Bond TRACE Data product.
The text of the proposed rule change is available on FINRA's Web
site at https://www.finra.org, at the principal office of FINRA and at
the Commission's Public Reference Room.
[[Page 76684]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
FINRA's TRACE data product offerings, set forth in Rule 7730 (Trade
Reporting and Compliance Engine (TRACE)), include both real-time as
well as historic data for most TRACE-eligible securities. The SEC
recently approved a new TRACE data product composed of enhanced
historic data available solely to academics (i.e., requests originating
from an institution of higher education).\5\ The new TRACE data
product--Academic Corporate Bond TRACE Data -- will contain
transaction-level data on historic transactions in corporate bonds and
will include masked counterparty information.\6\ Specifically,
``Academic Corporate Bond TRACE Data'' means historic transaction-level
data on all transactions in corporate bonds reported to TRACE (except a
transaction that is a List or Fixed Offering Price Transaction, as
defined in Rule 6710(q), or a Takedown Transaction, as defined in Rule
6710(r)), including Rule 144A transactions in corporate bonds, with
elements to be determined from time to time by FINRA in its discretion
and as stated in a Regulatory Notice or other equivalent
publication.\7\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 78759 (September 2,
2016), 81 FR 62222 (September 8, 2016) (``Order Approving File No.
SR-FINRA-2016-024'').
\6\ See Rule 7730(g)(5).
\7\ See supra note 6.
---------------------------------------------------------------------------
The Academic Corporate Bond TRACE Data will be delayed a minimum of
36 months and will not include Market Participant Identifiers
(``MPIDs''), but will substitute a masked dealer identifier for each
MPID included in the data.\8\ Applicants for Academic Corporate Bond
TRACE Data will be required to execute appropriate agreements with
FINRA.\9\
---------------------------------------------------------------------------
\8\ See supra note 6.
\9\ See Rule 7730(e).
---------------------------------------------------------------------------
FINRA is now proposing to amend FINRA Rule 7730 (Trade Reporting
and Compliance Engine (TRACE)) to establish fees for the Academic
Corporate Bond TRACE Data product. FINRA is proposing to establish a
data fee of $500 per calendar year (with a single set-up fee of $500)
for receipt of the Academic Corporate Bond TRACE Data product. FINRA
believes that this fee is reasonable, and notes that the subscription
fee for the Historic TRACE Data Sets is $500 per year (per data set),
with a single fee of $1,000 for development and set-up to receive
Historic TRACE Data for qualifying tax-exempt organizations.
FINRA has filed the proposed rule change for immediate
effectiveness. The effective date of the proposed rule change will be
the date of effectiveness of the Academic Corporate Bond TRACE Data
product.\10\
---------------------------------------------------------------------------
\10\ See Order Approving File No. SR-FINRA-2016-024. FINRA will
announce the effective date of the Academic Corporate Bond TRACE
Data product in a Regulatory Notice to be published no later than 90
days following Commission approval. The effective date will be no
later than 270 days following publication of that Regulatory Notice.
---------------------------------------------------------------------------
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(5) of the Act,\11\ which requires, among
other things, that FINRA rules provide for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system that FINRA operates or
controls.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------
Pursuant to the proposal, FINRA will establish fees to make
available to institutions of higher education an enhanced historic
TRACE data product that will include transaction-level data on
corporate bonds on a 36-month delayed basis with masked MPIDs. Academic
Corporate Bond TRACE Data will be made available only to institutions
of higher education for a fee of $500 per calendar year (with a single
set-up fee of $500). FINRA believes that the proposed fees are
reasonable, and notes that the fees will be applied equally to all
institutions of higher education that choose to subscribe to the data
product. Thus, FINRA believes that the proposed rule change is
consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposal to create a new
Academic Corporate Bond TRACE Data product would not impose any
additional reporting requirements or costs on firms and, as a result,
would have no direct impact on firms. The proposal to establish fees in
connection with the new Academic Corporate Bond TRACE Data product
applies only to institutions of higher education that choose to
subscribe to the data product, and the proposed fees will apply equally
to all such subscribers.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
FINRA solicited comment on a proposal to establish an enhanced
historic data product with masked dealer identifiers in Regulatory
Notice 15-26, including the proposal of a $500 fee per data set and a
one-time initial set-up fee of $500. FINRA received four comment
letters in response to the Regulatory Notice.\12\ A copy of the
Regulatory Notice is attached as Exhibit 2a. A list of comment letters
received in response to the Regulatory Notice is attached as Exhibit
2b. Copies of the comment letters received in response to the
Regulatory Notice are attached as Exhibit 2c. Of the four comment
letters received, none of the commenters discussed the $500 fee per
data set or the single set-up fee of $500.
---------------------------------------------------------------------------
\12\ See Letter from Michael Nicholas, Chief Executive Officer,
Bond Dealers of America, to Marcia E. Asquith, Corporate Secretary,
FINRA, dated August 24, 2015 (``BDA''), letter from Luis Palacios,
Director of Research Services, The Wharton School, to Marcia E.
Asquith, Corporate Secretary, FINRA, dated September 10, 2015
(``Wharton''), letter from David L. Cohen, Managing Director &
Associate General Counsel, and Sean Davy, Managing Director,
Securities Industry and Financial Markets Association, to Marcia E.
Asquith, Corporate Secretary, FINRA, dated September 11, 2015
(``SIFMA''), and letter from Carrie Devorah, Founder, The Center for
Copyrights Integrity, to Marcia E. Asquith, Corporate Secretary,
FINRA, dated September 14, 2015 (``CCI'').
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III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \13\ and paragraph (f)(2) of Rule 19b-4
thereunder.\14\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the
[[Page 76685]]
public interest, for the protection of investors, or otherwise in
furtherance of the purposes of the Act. If the Commission takes such
action, the Commission shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 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 email to rule-comments@sec.gov. Please include
File Number SR-FINRA-2016-040 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2016-040. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (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
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of FINRA. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-FINRA-2016-040, and should
be submitted on or before November 25, 2016.
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\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
Brent J. Fields,
Secretary.
[FR Doc. 2016-26509 Filed 11-2-16; 8:45 am]
BILLING CODE 8011-01-P