[Federal Register Volume 82, Number 135 (Monday, July 17, 2017)]
[Notices]
[Page 32728]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14884]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81114; File No. SR-FINRA-2017-015]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Order Granting Approval of Proposed Rule Change To 
Make Available a New End-of-Day TRACE Transaction File

July 11, 2017.

I. Introduction

    On May 18, 2017, the Financial Industry Regulatory Authority, Inc. 
(``FINRA'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend FINRA Rule 7730 (Trade Reporting and 
Compliance Engine (``TRACE'')) to make available a new End-of-Day 
(``EOD'') TRACE Transaction File. The proposed rule change was 
published for comment in the Federal Register on May 30, 2017.\3\ The 
Commission did not receive any comments on the proposal. As discussed 
below, the Commission is approving the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 80805 (May 18, 
2017), 82 FR 25862 (May 30, 2017) (``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposal

    FINRA Rule 7730, among other things, sets forth the TRACE data 
products offered by FINRA. FINRA has proposed to amend Rule 7730 to 
make available a new EOD TRACE Transaction File to provide interested 
parties with an alternative means of receiving the transaction 
information disseminated each trading day as part of Real-Time TRACE 
transaction data product.\4\ FINRA stated in the Notice that some 
market participants had indicated that a simpler alternative that 
allows them to receive transaction information once a day in an EOD 
file would be useful.
---------------------------------------------------------------------------

    \4\ FINRA currently makes available a Real-Time TRACE 
transaction data product, which provides subscribers with access to 
all disseminated transactions as they are reported throughout the 
trading day.
---------------------------------------------------------------------------

    The proposed EOD TRACE Transaction File would include the same data 
elements that are currently disseminated in the Real-Time TRACE 
transaction data product. The proposed EOD TRACE Transaction File would 
also be separately available for each data set for which Real-Time 
TRACE transaction data is available (i.e., the Corporate Bond Data Set, 
Agency Data Set, Securitized Product Data Set, and Rule 144A Data Set). 
Subscribers to the EOD TRACE Transaction File would access the product 
daily after the TRACE system closes.
    FINRA stated that it will announce the effective date of the 
proposed rule change in a Regulatory Notice. The effective date will be 
no later than 365 days following the Commission's approval. FINRA 
stated in the Notice that it intends to establish a fee for the EOD 
product before the effective date of this proposed rule change. The fee 
will be established pursuant to a separate rule filing.

III. Discussion

    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
association.\5\ In particular, the Commission finds that the proposed 
rule change is consistent with Section 15A(b)(6) of the Act,\6\ which 
requires, among other things, that FINRA rules be designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest. The 
Commission notes that the new EOD product does not require member firms 
to provide FINRA with any additional data, and subscription to the 
product is optional. The new product will include the same data 
elements that FINRA already disseminates in its Real-Time TRACE 
transaction data product and is a reasonable accommodation to market 
participants who may wish to obtain the same data in an EOD file.
---------------------------------------------------------------------------

    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule change's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered pursuant to Section 19(b)(2) of the Act \7\ 
that the proposed rule change (SR-FINRA-2017-015) be, and hereby is, 
approved.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2017-14884 Filed 7-14-17; 8:45 am]
BILLING CODE 8011-01-P