Daily Rules, Proposed Rules, and Notices of the Federal Government
FINRA is proposing to waive and issue a credit for fees that were charged to FINRA members under FINRA Rules 7620A and 7710 for the submission of "as/of" trade reports to the FINRA/Nasdaq Trade Reporting Facility ("FINRA/Nasdaq TRF") and the OTC Reporting Facility ("ORF"), respectively, for eight days in the months of August and September 2009. The proposed rule change does not require amendments to any 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.
Pursuant to FINRA Rules 7620A and 7710, members are charged fees for trade reporting to the FINRA/Nasdaq TRF and ORF, respectively, and the fee for the submission of late trade reports, including "as/of" reports, is higher than the fee for the submission of timely trade reports. "As/of" reports are reports of trades that were executed on a date prior to the date they were reported.
During the months of August and September 2009, various Automated Confirmation Transaction Service ("ACT") technology issues impacted trade reporting to the FINRA/Nasdaq TRF and the ORF for a period of eight days: August 3, August 4, August 5, August 17, August 21, September 16, September 25 and September 28. Due to the ACT technology issues, members were unable to report trades on trade date and thus incurred higher than normal reporting charges due to the higher number of "as/of" reports that they were compelled to submit.
Because the higher charges were the result of an ACT technology issue and not the fault of the member, FINRA is proposing to waive the fees for "as/of" trade reports submitted on each day following the day on which the ACT technology issues occurred. Specifically, FINRA will waive the "as/of" report fees for the following days in 2009: August 4, August 5, August 6, August 18, August 24, September 17, September 28 and September 29. Members will be issued a credit for the "as/of" trade report fees charged on these dates on a future invoice.
FINRA believes that the proposed rule change is consistent with Section 15A(b)(5) of the Act,
FINRA 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.
No written comments were either solicited or received.
The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act
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:
* Use the Commission's Internet comment form (
* Send an e-mail to
* Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.