[Federal Register Volume 84, Number 62 (Monday, April 1, 2019)]
[Notices]
[Pages 12306-12307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06176]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85420; File No. SR-FINRA-2019-003]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Order Approving Proposed Rule Change To Allow the
Publication or Distribution of Aggregated Transaction Information and
Statistics on Certain Non-Disseminated TRACE-Eligible Securities
March 26, 2019.
I. Introduction
On January 29, 2019, 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 6750 to allow the publication
or distribution of aggregated transaction information and statistics on
certain non-disseminated TRACE-Eligible Securities at no charge. The
proposed rule change was published for comment in the Federal Register
on February 13, 2019.\3\ The Commission received no comment letters on
the proposed rule change. This order approves the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 85073 (February 7,
2019), 84 FR 3842 (February 13, 2019) (``Notice'').
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II. Description of the Proposal
FINRA Rule 6750(a) provides that FINRA will publicly disseminate
information on all transactions in TRACE-Eligible Securities \4\
immediately upon receipt of a transaction report unless an exception
applies. FINRA Rule 6750(c) sets out those exceptions.\5\ In addition,
FINRA offers a number of real-time and historic TRACE data products on
disseminated transactions for a fee,\6\ and also publishes and
distributes aggregated transaction information and statistics on
disseminated transactions at no charge.\7\
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\4\ See FINRA Rule 6710(a) (defining ``TRACE-Eligible
Security'').
\5\ See FINRA Rule 6750(c). FINRA currently will not disseminate
information for non-member affiliate transactions, certain transfers
of proprietary interests, List or Fixed Offering Price or Takedown
Transactions, and transactions in U.S. Treasury Securities and
certain Securitized Products.
\6\ See FINRA Rule 7730.
\7\ See Notice, 84 FR at 3842.
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FINRA has proposed to add Supplementary Material .01 to FINRA Rule
6750 to provide that, notwithstanding FINRA Rule 6750(c), FINRA may, in
its discretion, publish or distribute aggregated transaction
information and statistics on certain non-disseminated TRACE-Eligible
Securities at no charge--unless FINRA submits a rule filing to the
Commission imposing a fee for such data. FINRA stated in the Notice
that it will not identify individual market participants or
transactions or publish aggregated transaction information and
statistics by individual securities. In addition, the proposed rule
change will not apply to U.S. Treasury Securities. FINRA has stated
that the proposed rule change will become effective the date of
Commission approval.\8\
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\8\ See id. at 3843.
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III. Discussion and Commission Findings
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.\9\ In particular, the Commission finds that the proposed
rule change is consistent with Section 15A(b)(6) of the Act,\10\ 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, and, in general, to protect investors
and the public interest. The Commission believes that the proposal will
promote some degree of public transparency, at no cost, for certain
classes of TRACE-Eligible Securities for which individual transactions
are not publicly disseminated. Moreover, the Commission believes that
the proposal is reasonably designed to preserve the confidentiality of
counterparty identities, consistent with the protection of investors
and the public interest.
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\9\ In approving this proposal, the Commission has considered
the proposed rule's impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
\10\ 15 U.S.C. 78o-3(b)(6).
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IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\11\ that the proposed rule change (SR-FINRA-2019-003) is approved.
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\11\ 15 U.S.C. 78s(b)(2).
[[Page 12307]]
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-06176 Filed 3-29-19; 8:45 am]
BILLING CODE 8011-01-P