Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Fees Related to the MSRB Academic Historical Transaction Data Product, 79069-79071 [2016-27149]

Download as PDF Federal Register / Vol. 81, No. 218 / Thursday, November 10, 2016 / Notices corresponding options rule. The proposed rule change is noncontroversial. The addition of the crossreference is for clarity. 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 noncontroversial rule change will merely add the reference to the options rule next to the current reference for the equity rule to make clear, as noted in the rule changes, that violations of either rule relating to disruptive quoting and trading activity, will be disciplined pursuant to Rule 9400. 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. asabaliauskas on DSK3SPTVN1PROD with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 12 and Rule 19b– 4(f)(6) thereunder.13 A proposed rule change filed pursuant to Rule 19b–4(f)(6) under the Act 14 normally does not become operative for 30 days after the date of its filing. However, Rule 19b–4(f)(6) 15 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it would allow the Exchange to immediately add the cross-reference within Rule 9400 which would provide clarity to members. The Exchange notes that a rule change to permit Rule 9400 to apply to violations of Chapter III, Section 16 was previously filed with the Commission. However, that filing failed to amend the rule text of Rule 9400 and only discussed the intended application 12 15 U.S.C. 78s(b)(3)(A). 13 17 CFR 240.19b–4(f)(6). 14 17 CFR 240.19b–4(f)(6). 15 17 CFR 240.19b–4(f)(6). VerDate Sep<11>2014 19:43 Nov 09, 2016 Jkt 241001 79069 of Rule 9400 to violations of Chapter III, Section 16 in the purpose section of the Form 19b–4. The text of the rule governs what actions the Exchange can take.16 However, because the description in the original filing sets forth what the Exchange intended the rule to cover, and this proposed rule change corrects an oversight by the Exchange in the previous filing, the Commission believes that waiving the 30-day operative delay 17 is consistent with the protection of investors and the public interest and designates the proposal operative on filing. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission will institute proceedings to determine whether the proposed rule change should be approved or disapproved. 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– NASDAQ–2016–146 and should be submitted on or before December 1, 2016. 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: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Brent J. Fields, Secretary. 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– NASDAQ–2016–146 on the subject line. SECURITIES AND EXCHANGE COMMISSION 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–NASDAQ–2016–146. 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 16 See Section 6(b)(1) of the Act. 15 U.S.C. 78f(b)(1). 17 For 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). PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 [FR Doc. 2016–27150 Filed 11–9–16; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–79239; File No. SR–MSRB– 2016–14] Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Fees Related to the MSRB Academic Historical Transaction Data Product November 4, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’ or ‘‘Exchange Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on October 25, 2016 the Municipal Securities Rulemaking Board (the ‘‘MSRB’’ or ‘‘Board’’) 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 MSRB. The 18 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\10NON1.SGM 10NON1 79070 Federal Register / Vol. 81, No. 218 / Thursday, November 10, 2016 / Notices 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 The MSRB filed with the Commission a proposed amendment to the MSRB’s facility for the Real-Time Transaction Reporting System (‘‘RTRS’’) to establish fees related to the MSRB Academic Historical Transaction Data Product (‘‘RTRS Academic Data Product’’) (‘‘proposed rule change’’).3 The MSRB has designated the proposed rule change as establishing or changing a fee or charge of the MSRB, which renders the proposed rule change effective upon receipt of this filing by the Commission. The effective date of the fees will coincide with the effective date of the RTRS Academic Data Product, which the MSRB will announce in a regulatory notice to be published no later than December 12, 2016, and which will be no later than June 9, 2017.4 The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. The text of the proposed rule change is available on the MSRB’s Web site at www.msrb.org/Rules-andInterpretations/SEC-Filings/2016Filings.aspx, at the MSRB’s principal office, 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 asabaliauskas on DSK3SPTVN1PROD with NOTICES In its filing with the Commission, the MSRB 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 MSRB has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. 3 See Exchange Act Release No. 78826 (Sept. 13, 2016), 81 FR 64215 (Sept. 19, 2016) (SR–MSRB– 2016–09) (‘‘Approval Order’’). 4 See id. at 64216 (noting that the effective date of the RTRS Academic Data Product will be announced in a regulatory notice to be published no later than 90 days from the date of the Approval Order, and such effective date will be no later than 270 days following publication of the regulatory notice announcing Commission approval of the proposed rule change); MSRB Notice 2016–22 (Sept. 14, 2016). VerDate Sep<11>2014 17:46 Nov 09, 2016 Jkt 241001 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Under the Exchange Act, the MSRB is charged with adopting rules with respect to transactions in municipal securities effected by brokers, dealers and municipal securities dealers (‘‘dealers’’) and the municipal advisory activities of municipal advisors. In addition, the MSRB has undertaken to create various market transparency products in furtherance of its statutory duties and its mission, which is, in part, to promote a fair and efficient municipal securities market through the collection and dissemination of market information. Historically, the MSRB has operated information systems to collect key disclosure documents and transaction data to create a central warehouse of information that in turn made most of these documents and data available to the market—the Electronic Municipal Market Access (EMMA®) 5 Web site. The MSRB makes post-trade transaction data available to the general public through the EMMA Web site at no cost, and to data vendors, industry utilities and others on a subscription basis through a real-time data feed and on a delayed basis. MSRB Rule G–14, on transaction reporting, requires dealers to report all executed transactions in municipal securities to RTRS within 15 minutes of the time of trade, with limited exceptions.6 The information facility for RTRS serves to outline the high-level parameters by which the MSRB operates the system. The new RTRS Academic Data Product will include the same transactions included in the current RTRS historical transaction data sets, with the inclusion of anonymized dealer identifiers but the exclusion of list offering price and takedown transactions, which are defined such that they generally encompass primary market transactions; will be made available only to academic institutions; and will be highly useful in connection with research activities by allowing academic institutions to attribute transactions to the dealers that facilitated them. The purpose of the proposed rule change is to establish fees related to the 5 EMMA® is a registered trademark of the MSRB. in securities without CUSIP numbers, transactions in municipal fund securities and certain inter-dealer securities movements not eligible for comparison through a clearing agency are the only transactions exempt from the reporting requirements of Rule G–14. 6 Transactions PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 RTRS Academic Data Product. Specifically, the proposed rule change would make the RTRS Academic Data Product available to academic institutions for a fee of $500 per oneyear data set (with a one-time initial setup fee of $500).7 The MSRB customarily waives all fees associated with an MSRB subscription service or historical data product purchase for non-profit organizations (including academic institutions). However, due to the additional legal and operational effort required for the MSRB to offer the RTRS Academic Data Product, the MSRB believes that the $500 fee per one-year data set and $500 one-time initial set-up fee is appropriate to help defray these costs, while not overly burdening academic institutions. 2. Statutory Basis Section 15B(b)(3)(B)(ii) of the Exchange Act 8 provides that the MSRB: shall not be prohibited from charging commercially reasonable fees for automated subscription-based feeds or similar services, or for charging for other data or documentbased services customized upon request of any person, made available to commercial enterprises, municipal securities market professionals, or the general public, whether delivered through the Internet or any other means, that contain all or part of the documents or information, subject to approval of the fees by the Commission under section 19(b). The MSRB believes that the proposed rule change is consistent with Section 15B(b)(3)(B)(ii) of the Exchange Act 9 in that it would charge a fee of $500 per one-year data set (with a one-time initial set-up fee of $500) for the RTRS Academic Data Product. The MSRB believes these fees are commercially reasonably as a means to help defray the additional legal and operational effort required for the MSRB to offer the RTRS Academic Data Product, while not overly burdening academic institutions. B. Self-Regulatory Organization’s Statement on Burden on Competition Section 15B(b)(2)(C) of the Exchange Act 10 requires that MSRB rules not be designed to impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. In determining whether these standards have been met, the MSRB was guided by the Board’s Policy on the Use of Economic Analysis 7 Academic institutions would be able to request the one-year data sets on a rolling basis, and any request that is not in a 12-month increment would be charged the full fee for an additional year. 8 15 U.S.C. 78o–4(b)(3)(B)(ii). 9 Id. 10 15 U.S.C. 78o–4(b)(2)(C). E:\FR\FM\10NON1.SGM 10NON1 Federal Register / Vol. 81, No. 218 / Thursday, November 10, 2016 / Notices in MSRB Rulemaking. In accordance with this policy, the Board has evaluated the potential impacts on competition of the proposed rule change, including in comparison to reasonable alternative regulatory approaches, relative to the baseline. The MSRB also considered other economic impacts of the proposed rule change and has addressed comments relevant to these impacts in other sections of this document. The MSRB does not believe that the proposed rule change will impose any additional burdens on competition, relative to the baseline, that are not necessary or appropriate in furtherance of the purposes of the Act. The MSRB notes that the proposed rule change will apply equally to all academic institutions who choose to purchase the RTRS Academic Data Product. asabaliauskas on DSK3SPTVN1PROD with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The MSRB received 13 comment letters in response to the request for comment that originally proposed the RTRS Academic Data Product.11 As was proposed in the Request for Comment, the RTRS Academic Data Product would have been made available for a fee of $500 per calendar-year data set (with a one-time initial set-up fee of $500).12 Only two of the commenters addressed the proposed fees.13 Specifically, Harris commented that academics should either pay a reduced rate, when compared to the fee charged to industry participants and their various organizations and consultants, or be given access for free because, in his opinion, academics are often not paid to conduct their research while the public obtains a benefit from the research being conducted. ABFM stated that it believes the fee is reasonable. The MSRB notes that there is no occasion to provide the RTRS Academic Data Product at a discount, as it is available only to academic institutions. Further, the MSRB believes that the proposed fees, which are substantially less than the 11 See MSRB Notice 2015–10 (July 16, 2015) (‘‘Request for Comment’’). 12 The MSRB notes that the Request for Comment proposed the availability of the RTRS Academic Data Product in calendar-year data sets, but, as it does with other data products and as described above, the MSRB would make the RTRS Academic Data Product available on a rolling basis in one-year data sets. 13 See letters from: Robert Kravchuk, et al., Association for Budgeting and Financial Management (‘‘ABFM’’), dated September 13, 2015; and Lawrence Harris (‘‘Harris’’), Professor of Finance and Business Economics, University of Southern California, Marshall School of Business, dated September 6, 2015. VerDate Sep<11>2014 19:43 Nov 09, 2016 Jkt 241001 analogous fees for the historical transaction data sets,14 are fair and reasonable given the expenses incurred to create and facilitate the product, and that the fees would not overly burden academic institutions. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 15 and paragraph (f) of Rule 19b–4 thereunder.16 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. 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– MSRB–2016–14 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549. All submissions should refer to File Number SR–MSRB–2016–14. 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 14 The MSRB provides historical transaction data in one-year data sets for $2,500 per year and charges a one-time set-up fee of $2,000. 15 15 U.S.C. 78s(b)(3)(A). 16 17 CFR 240.19b–4(f). PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 79071 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 MSRB. 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–MSRB– 2016–14 and should be submitted on or before December 1, 2016. For the Commission, pursuant to delegated authority.17 Brent J. Fields, Secretary. [FR Doc. 2016–27149 Filed 11–9–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–79245; File No. SR–NSCC– 2016–005) Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change To Accelerate Its Trade Guaranty, Add New Clearing Fund Components, Enhance Its Intraday Risk Management, Provide for Loss Allocation of ‘‘Off-the-Market Transactions,’’ and Make Other Changes November 4, 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, National Securities Clearing Corporation (‘‘NSCC’’ or the ‘‘Corporation’’) 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 primarily by the clearing agency.3 The 17 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 On October 25, 2016, NSCC filed this proposed rule change as an advance notice (SR–NSCC–2016– 803) with the Commission pursuant to Section 806(e)(1) of the Dodd-Frank Wall Street Reform and Consumer Protection Act entitled the Payment, Clearing, and Settlement Supervision Act of 2010, 12 U.S.C. 5465(e)(1), and Rule 19b–4(n)(1)(i) of the 1 15 E:\FR\FM\10NON1.SGM Continued 10NON1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 81, Number 218 (Thursday, November 10, 2016)]
[Notices]
[Pages 79069-79071]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27149]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79239; File No. SR-MSRB-2016-14]

Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change To Establish Fees Related to the MSRB Academic Historical
Transaction Data Product

November 4, 2016.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\
notice is hereby given that on October 25, 2016 the Municipal
Securities Rulemaking Board (the ``MSRB'' or ``Board'') 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 MSRB. The

[[Page 79070]]

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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The MSRB filed with the Commission a proposed amendment to the
MSRB's facility for the Real-Time Transaction Reporting System
(``RTRS'') to establish fees related to the MSRB Academic Historical
Transaction Data Product (``RTRS Academic Data Product'') (``proposed
rule change'').\3\ The MSRB has designated the proposed rule change as
establishing or changing a fee or charge of the MSRB, which renders the
proposed rule change effective upon receipt of this filing by the
Commission. The effective date of the fees will coincide with the
effective date of the RTRS Academic Data Product, which the MSRB will
announce in a regulatory notice to be published no later than December
12, 2016, and which will be no later than June 9, 2017.\4\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

\3\ See Exchange Act Release No. 78826 (Sept. 13, 2016), 81 FR
64215 (Sept. 19, 2016) (SR-MSRB-2016-09) (``Approval Order'').
\4\ See id. at 64216 (noting that the effective date of the RTRS
Academic Data Product will be announced in a regulatory notice to be
published no later than 90 days from the date of the Approval Order,
and such effective date will be no later than 270 days following
publication of the regulatory notice announcing Commission approval
of the proposed rule change); MSRB Notice 2016-22 (Sept. 14, 2016).
---------------------------------------------------------------------------

The text of the proposed rule change is available on the MSRB's Web
site at www.msrb.org/Rules-and-Interpretations/SEC-Filings/2016-Filings.aspx, at the MSRB's principal office, 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 MSRB 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 MSRB 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
Under the Exchange Act, the MSRB is charged with adopting rules
with respect to transactions in municipal securities effected by
brokers, dealers and municipal securities dealers (``dealers'') and the
municipal advisory activities of municipal advisors. In addition, the
MSRB has undertaken to create various market transparency products in
furtherance of its statutory duties and its mission, which is, in part,
to promote a fair and efficient municipal securities market through the
collection and dissemination of market information.
Historically, the MSRB has operated information systems to collect
key disclosure documents and transaction data to create a central
warehouse of information that in turn made most of these documents and
data available to the market--the Electronic Municipal Market Access
(EMMA[supreg]) \5\ Web site. The MSRB makes post-trade transaction data
available to the general public through the EMMA Web site at no cost,
and to data vendors, industry utilities and others on a subscription
basis through a real-time data feed and on a delayed basis.
---------------------------------------------------------------------------

\5\ EMMA[supreg] is a registered trademark of the MSRB.
---------------------------------------------------------------------------

MSRB Rule G-14, on transaction reporting, requires dealers to
report all executed transactions in municipal securities to RTRS within
15 minutes of the time of trade, with limited exceptions.\6\ The
information facility for RTRS serves to outline the high-level
parameters by which the MSRB operates the system. The new RTRS Academic
Data Product will include the same transactions included in the current
RTRS historical transaction data sets, with the inclusion of anonymized
dealer identifiers but the exclusion of list offering price and
takedown transactions, which are defined such that they generally
encompass primary market transactions; will be made available only to
academic institutions; and will be highly useful in connection with
research activities by allowing academic institutions to attribute
transactions to the dealers that facilitated them.
---------------------------------------------------------------------------

\6\ Transactions in securities without CUSIP numbers,
transactions in municipal fund securities and certain inter-dealer
securities movements not eligible for comparison through a clearing
agency are the only transactions exempt from the reporting
requirements of Rule G-14.
---------------------------------------------------------------------------

The purpose of the proposed rule change is to establish fees
related to the RTRS Academic Data Product. Specifically, the proposed
rule change would make the RTRS Academic Data Product available to
academic institutions for a fee of $500 per one-year data set (with a
one-time initial set-up fee of $500).\7\ The MSRB customarily waives
all fees associated with an MSRB subscription service or historical
data product purchase for non-profit organizations (including academic
institutions). However, due to the additional legal and operational
effort required for the MSRB to offer the RTRS Academic Data Product,
the MSRB believes that the $500 fee per one-year data set and $500 one-
time initial set-up fee is appropriate to help defray these costs,
while not overly burdening academic institutions.
---------------------------------------------------------------------------

\7\ Academic institutions would be able to request the one-year
data sets on a rolling basis, and any request that is not in a 12-
month increment would be charged the full fee for an additional
year.
---------------------------------------------------------------------------

2. Statutory Basis
Section 15B(b)(3)(B)(ii) of the Exchange Act \8\ provides that the
MSRB:
---------------------------------------------------------------------------

\8\ 15 U.S.C. 78o-4(b)(3)(B)(ii).

shall not be prohibited from charging commercially reasonable
fees for automated subscription-based feeds or similar services, or
for charging for other data or document-based services customized
upon request of any person, made available to commercial
enterprises, municipal securities market professionals, or the
general public, whether delivered through the Internet or any other
means, that contain all or part of the documents or information,
subject to approval of the fees by the Commission under section
---------------------------------------------------------------------------
19(b).

The MSRB believes that the proposed rule change is consistent with
Section 15B(b)(3)(B)(ii) of the Exchange Act \9\ in that it would
charge a fee of $500 per one-year data set (with a one-time initial
set-up fee of $500) for the RTRS Academic Data Product. The MSRB
believes these fees are commercially reasonably as a means to help
defray the additional legal and operational effort required for the
MSRB to offer the RTRS Academic Data Product, while not overly
burdening academic institutions.
---------------------------------------------------------------------------

\9\ Id.
---------------------------------------------------------------------------

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

Section 15B(b)(2)(C) of the Exchange Act \10\ requires that MSRB
rules not be designed to impose any burden on competition not necessary
or appropriate in furtherance of the purposes of the Act. In
determining whether these standards have been met, the MSRB was guided
by the Board's Policy on the Use of Economic Analysis

[[Page 79071]]

in MSRB Rulemaking. In accordance with this policy, the Board has
evaluated the potential impacts on competition of the proposed rule
change, including in comparison to reasonable alternative regulatory
approaches, relative to the baseline. The MSRB also considered other
economic impacts of the proposed rule change and has addressed comments
relevant to these impacts in other sections of this document. The MSRB
does not believe that the proposed rule change will impose any
additional burdens on competition, relative to the baseline, that are
not necessary or appropriate in furtherance of the purposes of the Act.
The MSRB notes that the proposed rule change will apply equally to all
academic institutions who choose to purchase the RTRS Academic Data
Product.
---------------------------------------------------------------------------

\10\ 15 U.S.C. 78o-4(b)(2)(C).
---------------------------------------------------------------------------

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

The MSRB received 13 comment letters in response to the request for
comment that originally proposed the RTRS Academic Data Product.\11\ As
was proposed in the Request for Comment, the RTRS Academic Data Product
would have been made available for a fee of $500 per calendar-year data
set (with a one-time initial set-up fee of $500).\12\ Only two of the
commenters addressed the proposed fees.\13\ Specifically, Harris
commented that academics should either pay a reduced rate, when
compared to the fee charged to industry participants and their various
organizations and consultants, or be given access for free because, in
his opinion, academics are often not paid to conduct their research
while the public obtains a benefit from the research being conducted.
ABFM stated that it believes the fee is reasonable. The MSRB notes that
there is no occasion to provide the RTRS Academic Data Product at a
discount, as it is available only to academic institutions. Further,
the MSRB believes that the proposed fees, which are substantially less
than the analogous fees for the historical transaction data sets,\14\
are fair and reasonable given the expenses incurred to create and
facilitate the product, and that the fees would not overly burden
academic institutions.
---------------------------------------------------------------------------

\11\ See MSRB Notice 2015-10 (July 16, 2015) (``Request for
Comment'').
\12\ The MSRB notes that the Request for Comment proposed the
availability of the RTRS Academic Data Product in calendar-year data
sets, but, as it does with other data products and as described
above, the MSRB would make the RTRS Academic Data Product available
on a rolling basis in one-year data sets.
\13\ See letters from: Robert Kravchuk, et al., Association for
Budgeting and Financial Management (``ABFM''), dated September 13,
2015; and Lawrence Harris (``Harris''), Professor of Finance and
Business Economics, University of Southern California, Marshall
School of Business, dated September 6, 2015.
\14\ The MSRB provides historical transaction data in one-year
data sets for $2,500 per year and charges a one-time set-up fee of
$2,000.
---------------------------------------------------------------------------

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

The foregoing proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \15\ and paragraph (f) of Rule 19b-4
thereunder.\16\ 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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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-MSRB-2016-14 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-MSRB-2016-14. 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 MSRB. 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-MSRB-2016-14 and should be
submitted on or before December 1, 2016.

For the Commission, pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-27149 Filed 11-9-16; 8:45 am]
BILLING CODE 8011-01-P

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