Daily Rules, Proposed Rules, and Notices of the Federal Government
FINRA is proposing to waive certain Trade Reporting and Compliance Engine ("TRACE") late trade reporting fees specified in FINRA Rule 7730(b)(3) due to disruptions in normal business operations as a result of Hurricane Sandy.
The text of the proposed rule change is available on FINRA's Web site at
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.
Transactions in TRACE-Eligible Securities, as defined in FINRA Rule 6710(a), are required to be reported to FINRA within the time frames specified in FINRA Rule 6730(a). FINRA Rule 7730(b) sets forth the charges to be assessed against each member responsible for reporting such transactions. FINRA Rule 7730(b)(3) provides that members shall be charged a $3.00 per transaction late fee for those transactions that are not timely reported "as/of" as required by the FINRA Rule 6700 Series. Due to significant disruptions in normal business operations as a result of Hurricane Sandy or Superstorm Sandy ("Sandy") that made landfall along the mid-Atlantic Coast on October 29, 2012, FINRA proposes to waive such TRACE late trade reporting fees if a firm in an area affected by Sandy
FINRA has filed the proposed rule change for immediate effectiveness. The effective date and the implementation date will be the date of filing.
FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(5) of the Act,
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 late trade reporting fee for those firms that were adversely affected by Sandy is appropriate considering the lack of communications, transportation, electricity, facilities and available staff as a result of Sandy that hampered the ability of members in the affected areas (or with fixed income operations in the affected area) to meet their TRACE reporting deadlines. FINRA believes that the limited late trade reporting fee waiver would not place an unreasonable fee burden on members, nor confer an uncompetitive benefit to members that may have their late trade reporting fees waived, in that such waiver would be available for a very limited period (only for trades executed on Monday, October 29, 2012 or Tuesday, October 30, 2012 provided that such transactions were reported no later than Wednesday, October 31, 2012, by the TRACE system closing), and the financial impact of such a waiver would be
Written comments were neither solicited nor received.
The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) 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 email to
* Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.