Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Waive Certain TRACE Reporting Fees, 29620-29622 [2017-13584]
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29620
Federal Register / Vol. 82, No. 124 / Thursday, June 29, 2017 / Notices
proposed rule change operative upon
filing.22
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 23 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
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 No. SR–
NYSE–2017–25 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–NYSE–2017–25. 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
sradovich on DSK3GMQ082PROD with NOTICES
Trades up to and including $200,000 par value
22 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).
23 15 U.S.C. 78s(b)(2)(B).
24 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
VerDate Sep<11>2014
18:29 Jun 28, 2017
Jkt 241001
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 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 No. SR–NYSE–
2017–25, and should be submitted on or
before July 20, 2017.
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Eduardo A. Aleman,
Assistant Secretary.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2017–13588 Filed 6–28–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81009; File No. SR–FINRA–
2017–022]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Waive Certain TRACE
Reporting Fees
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
FINRA is proposing to waive fees
under Rule 7730 for trade reporting to
the Trade Reporting and Compliance
Engine (‘‘TRACE’’) due to a TRACE
system issue on February 16, 2017 and
February 17, 2017. The proposed rule
change does not make any changes to
the text of FINRA rules.
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
June 23, 2017.
1. Purpose
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 21,
2017, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
FINRA Rule 6730 (Transaction
Reporting) generally requires that
members report trades in TRACEEligible Securities 5 to TRACE. FINRA
assesses fees in connection with TRACE
reporting pursuant to Rule 7730,
including for reporting trades,
cancelling or correcting previously
reported trades, and late reporting, as
summarized below:
$0.475/trade. For Securitized Products where par value is not used to determine the size (volume) of a transaction, for purposes of trade reporting fees, size (volume) is the lesser of
original face value or Remaining Principal Balance (or the equivalent) at the Time of Execution of the transaction.
2 17
CFR 240.19b–4.
U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
5 Rule 6710 provides that ‘‘TRACE-Eligible
Security’’ means a debt security that is United
States (‘‘U.S.’’) dollar-denominated and is: (1)
Issued by a U.S. or foreign private issuer, and, if a
‘‘restricted security’’ as defined in Securities Act
3 15
PO 00000
Frm 00147
Fmt 4703
Sfmt 4703
Rule 144(a)(3), sold pursuant to Securities Act Rule
144A; (2) issued or guaranteed by an Agency as
defined in paragraph (k) or a GovernmentSponsored Enterprise as defined in paragraph (n);
or (3) a U.S. Treasury Security as defined in
paragraph (p), but does not include a debt security
that is issued by a foreign sovereign or a Money
Market Instrument as defined in paragraph (o).
E:\FR\FM\29JNN1.SGM
29JNN1
Federal Register / Vol. 82, No. 124 / Thursday, June 29, 2017 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
Trades over $200,000 and up to and including
$999,999.99 par value.
Trades of $1,000,000 par value or more ...........
All transactions in Securitized Products that are
Agency Pass-Through Mortgage-Backed Securities traded to be announced or SBABacked ABS traded to be announced.
Cancel/Correct ....................................................
‘‘As/of’’ Trade Late ..............................................
FINRA rules also provide that FINRA
will disseminate information on all
reported transactions for public
transparency, unless the transaction is
not subject to dissemination pursuant to
Rule 6750 (Dissemination of
Transaction Information). FINRA is
filing the instant proposed rule change
to waive member trade reporting fees,
cancel/correct fees, and as-of/late fees in
connection with a TRACE system issue
that resulted in a number of transactions
not being disseminated.
Specifically, on February 16, 2017
and February 17, 2017, due to an
inadvertent change to the configuration
settings for a single TRACE-Eligible
Security, the TRACE system did not
disseminate 68 trades that were subject
to dissemination. On February 21, 2017,
FINRA contacted the 12 members that
reported the affected transactions and
requested that these trades be cancelled
and re-reported so that the transactions
would be properly disseminated. All
impacted trades were cancelled and rereported between February 21st and
February 23rd. In addition to the
original trade reporting fees, impacted
members were assessed trade reporting
fees in connection with the corrective
actions necessary to facilitate
dissemination.
To ensure that members are not
charged for such additional
submissions, FINRA is proposing to
waive the TRACE reporting fees under
Rule 7730 that were associated with the
corrective trade reports between
February 21st and February 23rd,
including transaction reporting fees,
cancel/correct fees, and as-of/late fees.
Because the pertinent billing cycle
ended on February 28, 2017, members
impacted by the system glitch will
receive appropriate credits during the
July 2017 billing cycle. FINRA believes
it is equitable to provide this relief to
members.
FINRA has filed the proposed rule
change for immediate effectiveness. The
operative date will be the date of filing.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
VerDate Sep<11>2014
18:29 Jun 28, 2017
Jkt 241001
29621
$0.000002375 times the par value of the transaction (i.e., $0.002375/$1000).
$2.375/trade.
$1.50/trade.
$1.50/trade.
$3/trade.
of Section 15A(b)(5) of the Act,6 which
requires, among other things, that
FINRA rules provide for the equitable
allocation of reasonable dues, fees and
other charges among members and
issuers and other persons using any
facility or system that FINRA operates
or controls. FINRA believes that the
proposed rule change to waive trade
reporting fees under Rule 7730, as
described herein, is appropriate in light
of the TRACE system issue on February
16, 2017 and February 17, 2017. FINRA
does not believe that members should
incur fees resulting from corrective
trade reports submitted following the
TRACE systems issue.
FINRA believes that this limited
waiver results in reasonable fees that are
equitably allocated. In addition, the
proposed trade reporting fee waiver
does not unfairly discriminate between
or among members in that the waiver is
available to any impacted member that
reported impacted transactions to
TRACE on the relevant dates and who
took the requested corrective actions
that resulted in additional fees.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. FINRA
believes that the proposed rule change
to waive the trade reporting fees is
appropriate in light of the TRACE
systems issue, which required members
to take corrective action and resubmit
transaction reports to TRACE. FINRA
believes that the limited trade reporting
fee waiver would not place an
unreasonable fee burden on members,
nor confer an uncompetitive benefit to
members that have their trade reporting
fees waived, in that such waiver would
be applied only to the members that
incurred additional TRACE fees in
connection with the cancellation and rereporting of impacted transactions.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 7 and paragraph (f)(2) of Rule
19b–4 thereunder.8 At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
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 No. SR–
FINRA–2017–022 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–FINRA–2017–022. This file number
should be included on the subject line
if email is used. To help the
Commission process and review your
comments more efficiently, please use
7 15
6 15
PO 00000
U.S.C. 78o–3(b)(5).
Frm 00148
Fmt 4703
8 17
Sfmt 4703
E:\FR\FM\29JNN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
29JNN1
29622
Federal Register / Vol. 82, No. 124 / Thursday, June 29, 2017 / Notices
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 No. SR–FINRA–
2017–022, and should be submitted on
or before July 20, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Eduardo A. Aleman,
Assistant Secretary.
The transaction may be consummated
on July 13, 2017, the effective date of
the exemption (30 days after the verified
notice was filed).
If the notice contains false or
misleading information, the exemption
is void ab initio. Petitions to revoke the
exemption under 49 U.S.C. 10502(d)
may be filed at any time. The filing of
a petition to revoke will not
automatically stay the transaction.
Petitions for stay must be filed no later
than July 6, 2017 (at least seven days
before the exemption becomes
effective).
An original and 10 copies of all
pleadings, referring to Docket No. FD
36129, must be filed with the Surface
Transportation Board, 395 E Street SW.,
Washington, DC 20423–0001. In
addition, one copy of each pleading
must be served on T. Scott Bannister,
111 SW., Fifty-Sixth St., Des Moines, IA
50312.
According to IRR, this action is
categorically excluded from
environmental review under 49 CFR
1105.6(c).
Board decisions and notices are
available on our Web site at
WWW.STB.GOV.
Decided: June 26, 2017.
By the Board, Rachel D. Campbell,
Director, Office of Proceedings.
Marline Simeon,
Clearance Clerk.
[FR Doc. 2017–13645 Filed 6–28–17; 8:45 am]
BILLING CODE 4915–01–P
[FR Doc. 2017–13584 Filed 6–28–17; 8:45 am]
BILLING CODE 8011–01–P
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
SURFACE TRANSPORTATION BOARD
[Docket Number USTR–2017–0010]
[Docket No. FD 36129]
Request for Comments Regarding the
Administration’s Reviews and Report
to the President on Trade Agreement
Violations and Abuses
sradovich on DSK3GMQ082PROD with NOTICES
Iowa River Railroad, Inc.—Acquisition
and Operation Exemption—Rail Line of
North Central Railway Association, Inc.
Iowa River Railroad, Inc. (IRR), a
Class III rail carrier, has filed a verified
notice of exemption under 49 CFR
1150.41 to acquire from North Central
Railway Association, Inc., and operate
0.59 miles of rail line, between Milepost
200.87 and Milepost 201.46, at or near
Ackley, in Hardin County, Iowa.
IRR certifies that the projected annual
revenues as a result of this transaction
will not result in the creation of a Class
II or Class I rail carrier and will not
exceed $5 million.
IRR further certifies that the
transaction does not include an
interchange commitment.
9 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
18:29 Jun 28, 2017
Jkt 241001
Office of the United States
Trade Representative and the
Department of Commerce
ACTION: Request for comments.
AGENCY:
Executive Order 13796 of
April 29, 2017 (82 FR 20819), requires
the United States Trade Representative
and the Secretary of Commerce, in
consultation with the Secretary of State,
the Secretary of the Treasury, the
Attorney General, and the Director of
the Office of Trade and Manufacturing
Policy, to conduct comprehensive
performance reviews of all bilateral,
plurilateral, and multilateral trade
agreements and investment agreements
to which the United States is a party
and all trade relations with countries
SUMMARY:
PO 00000
Frm 00149
Fmt 4703
Sfmt 4703
governed by the rules of the World
Trade Organization (WTO) with which
the United States does not have free
trade agreements but with which the
United States runs significant trade
deficits in goods. The Office of the
United States Trade Representative
(USTR) and the Department of
Commerce (DoC) are seeking comments
that they will consider as part of these
performance reviews and in the
preparation of the subsequent report to
the President.
DATES: Written comments are due by
11:59 p.m. (EDT) on July 31, 2017.
ADDRESSES: USTR and DoC strongly
prefer electronic submissions made
through the Federal eRulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments in
section II below. The docket number is
USTR–2017–0010. For alternatives to
on-line submissions, please contact
Yvonne Jamison, Trade Policy Staff
Committee, at (202) 395–3475.
FOR FURTHER INFORMATION CONTACT: For
procedural questions concerning written
comments, contact Yvonne Jamison at
(202) 395–3475. Direct all other
questions regarding this notice to Sloane
Strickler, USTR Office of General
Counsel, at John_Strickler@ustr.eop.gov.
SUPPLEMENTARY INFORMATION:
I. Topics on Which USTR and
Commerce Seek Information
To assist USTR and DoC in
conducting the performance reviews of
trade agreements and preparing the
report, commenters should submit
information related to one or more of
the following assessments:
a. The performance of individual free
trade agreements (FTAs) and bilateral
investment treaties (BITs) to which the
United States is a party. There currently
are 14 FTAs in force: https://ustr.gov/
trade-agreements/free-tradeagreements.There currently are 40 BITs
in force: https://tcc.export.gov/Trade_
Agreements/Bilateral_Investment_
Treaties/index.asp.
b. The performance of the WTO
agreements with regard to our trade
relations with those trading partners
with which the United States does not
have an FTA, but with which the United
States runs significant trade deficits in
goods. Consistent with the Federal
Register notice regarding the Report on
Significant Trade Deficits (82 FR 18110),
the trading partners subject to these
performance reviews are in alphabetical
order: China, the European Union,
India, Indonesia, Japan, Malaysia,
Switzerland, Taiwan, Thailand, and
Vietnam. You can find a complete list
of the WTO agreements at https://
E:\FR\FM\29JNN1.SGM
29JNN1
]]>Agencies
[Federal Register Volume 82, Number 124 (Thursday, June 29, 2017)]
[Notices]
[Pages 29620-29622]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13584]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81009; File No. SR-FINRA-2017-022]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Waive Certain TRACE Reporting Fees
June 23, 2017.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 21, 2017, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by FINRA. FINRA has
designated the proposed rule change as ``establishing or changing a
due, fee or other charge'' under Section 19(b)(3)(A)(ii) of the Act \3\
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal
effective upon receipt of this filing by the Commission. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
FINRA is proposing to waive fees under Rule 7730 for trade
reporting to the Trade Reporting and Compliance Engine (``TRACE'') due
to a TRACE system issue on February 16, 2017 and February 17, 2017. The
proposed rule change does not make any changes to the text of FINRA
rules.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
FINRA Rule 6730 (Transaction Reporting) generally requires that
members report trades in TRACE-Eligible Securities \5\ to TRACE. FINRA
assesses fees in connection with TRACE reporting pursuant to Rule 7730,
including for reporting trades, cancelling or correcting previously
reported trades, and late reporting, as summarized below:
---------------------------------------------------------------------------
\5\ Rule 6710 provides that ``TRACE-Eligible Security'' means a
debt security that is United States (``U.S.'') dollar-denominated
and is: (1) Issued by a U.S. or foreign private issuer, and, if a
``restricted security'' as defined in Securities Act Rule 144(a)(3),
sold pursuant to Securities Act Rule 144A; (2) issued or guaranteed
by an Agency as defined in paragraph (k) or a Government-Sponsored
Enterprise as defined in paragraph (n); or (3) a U.S. Treasury
Security as defined in paragraph (p), but does not include a debt
security that is issued by a foreign sovereign or a Money Market
Instrument as defined in paragraph (o).
------------------------------------------------------------------------
------------------------------------------------------------------------
Trades up to and including $0.475/trade. For Securitized Products
$200,000 par value. where par value is not used to determine
the size (volume) of a transaction, for
purposes of trade reporting fees, size
(volume) is the lesser of original face
value or Remaining Principal Balance (or
the equivalent) at the Time of Execution
of the transaction.
[[Page 29621]]
Trades over $200,000 and up $0.000002375 times the par value of the
to and including $999,999.99 transaction (i.e., $0.002375/$1000).
par value.
Trades of $1,000,000 par $2.375/trade.
value or more.
All transactions in $1.50/trade.
Securitized Products that
are Agency Pass-Through
Mortgage-Backed Securities
traded to be announced or
SBA-Backed ABS traded to be
announced.
Cancel/Correct............... $1.50/trade.
``As/of'' Trade Late......... $3/trade.
------------------------------------------------------------------------
FINRA rules also provide that FINRA will disseminate information on
all reported transactions for public transparency, unless the
transaction is not subject to dissemination pursuant to Rule 6750
(Dissemination of Transaction Information). FINRA is filing the instant
proposed rule change to waive member trade reporting fees, cancel/
correct fees, and as-of/late fees in connection with a TRACE system
issue that resulted in a number of transactions not being disseminated.
Specifically, on February 16, 2017 and February 17, 2017, due to an
inadvertent change to the configuration settings for a single TRACE-
Eligible Security, the TRACE system did not disseminate 68 trades that
were subject to dissemination. On February 21, 2017, FINRA contacted
the 12 members that reported the affected transactions and requested
that these trades be cancelled and re-reported so that the transactions
would be properly disseminated. All impacted trades were cancelled and
re-reported between February 21st and February 23rd. In addition to the
original trade reporting fees, impacted members were assessed trade
reporting fees in connection with the corrective actions necessary to
facilitate dissemination.
To ensure that members are not charged for such additional
submissions, FINRA is proposing to waive the TRACE reporting fees under
Rule 7730 that were associated with the corrective trade reports
between February 21st and February 23rd, including transaction
reporting fees, cancel/correct fees, and as-of/late fees. Because the
pertinent billing cycle ended on February 28, 2017, members impacted by
the system glitch will receive appropriate credits during the July 2017
billing cycle. FINRA believes it is equitable to provide this relief to
members.
FINRA has filed the proposed rule change for immediate
effectiveness. The operative date will be the date of filing.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(5) of the Act,\6\ which requires, among
other things, that FINRA rules provide for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system that FINRA operates or
controls. FINRA believes that the proposed rule change to waive trade
reporting fees under Rule 7730, as described herein, is appropriate in
light of the TRACE system issue on February 16, 2017 and February 17,
2017. FINRA does not believe that members should incur fees resulting
from corrective trade reports submitted following the TRACE systems
issue.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------
FINRA believes that this limited waiver results in reasonable fees
that are equitably allocated. In addition, the proposed trade reporting
fee waiver does not unfairly discriminate between or among members in
that the waiver is available to any impacted member that reported
impacted transactions to TRACE on the relevant dates and who took the
requested corrective actions that resulted in additional fees.
B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. FINRA believes that the
proposed rule change to waive the trade reporting fees is appropriate
in light of the TRACE systems issue, which required members to take
corrective action and resubmit transaction reports to TRACE. FINRA
believes that the limited trade reporting fee waiver would not place an
unreasonable fee burden on members, nor confer an uncompetitive benefit
to members that have their trade reporting fees waived, in that such
waiver would be applied only to the members that incurred additional
TRACE fees in connection with the cancellation and re-reporting of
impacted transactions.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \7\ and paragraph (f)(2) of Rule 19b-4
thereunder.\8\ At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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 No. SR-FINRA-2017-022 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-FINRA-2017-022. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use
[[Page 29622]]
only one method. The Commission will post all comments on the
Commission's Internet Web site (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 No. SR-FINRA-2017-022, and should be submitted on
or before July 20, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-13584 Filed 6-28-17; 8:45 am]
BILLING CODE 8011-01-P
