Federal Register / Vol. 87, No. 28 / Thursday, February 10, 2022 / Notices 7883 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). A proposed rule change 

may take effect upon filing with the Commission if 

it is designated by the exchange as ‘‘establishing or 

changing a due, fee, or other charge imposed by the 

self-regulatory organization on any person, whether 

or not the person is a member of the self-regulatory 

organization.’’ 15 U.S.C. 78s(b)(3)(A)(ii). 

4See Securities Exchange Act Release No. 93776 

(December 14, 2021), 86 FR 71983. 

5 15 U.S.C. 78s(b)(2)(B). 

6See Securities Exchange Act Release No. 94089, 

87 FR 5910 (February 2, 2022). 

7 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 ‘‘Retail Participants,’’ as that term is defined in 

Supplementary Material .01 to Rule 7620A, is ‘‘a 

participant in the FINRA/Nasdaq Trade Reporting 

Facility for which substantially all of its trade 

reporting activity on the FINRA/Nasdaq Trade 

Reporting Facility comprises Retail Orders.’’ 

4WebLink ACT is a browser-based application 

that electronically facilitates trade reporting and 

clearing functions for trades reported to the FINRA/ 

Nasdaq Trade Reporting Facility. 

5Workstation is a web-based application that 

electronically facilitates trade reporting and 

clearing functions for trades reported to the FINRA/ 

Nasdaq TRF. Workstation services include trade 

entry, trade scan, and uploads for bulk trade entry 

to support FINRA/Nasdaq TRF participant trade 

reporting in accordance with FINRA rules. 

6WorkX is a re-platformed version of Workstation 

that simplifies regulatory responsibilities and 

enhances the user experience with improved 

workflow, system performance, and data 

visualization. WorkX also upgrades trade reporting 

and monitoring with a modern user interface using 

cloud-based technology. FINRA rules and FINRA/ 

Nasdaq Trade Reporting Facility system processing 

are unchanged. 

7FINRA notes that firms reporting to the FINRA/ 

Nasdaq TRF pay Nasdaq associated user fees for 

WebLink, Workstation, and WorkX under Nasdaq 

rules. See, e.g., Equity 7 Pricing Schedule, Section 

115(e) of the Nasdaq Rule. 

8FINRA’s oversight of this function performed by 

the Business Member is conducted through a 

recurring assessment and review of TRF operations 

by an outside independent audit firm. 

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 the Exchange’s Fee 

Schedule to adopt a tiered pricing 

structure for certain connectivity fees. 

The proposed rule change was 

immediately effective upon filing with 

the Commission pursuant to Section 

19(b)(3)(A) of the Act.3 The proposed 

rule change was published for comment 

in the Federal Register on December 20, 

2021.4 On January 27, 2022, the 

Commission temporarily suspended the 

proposed rule change and instituted 

proceedings under Section 19(b)(2)(B) of 

the Act 5 to determine whether to 

approve or disapprove the proposed 

rule change.6 On Febraury 1, 2022, the 

Exchange withdrew the proposed rule 

change (SR–EMERALD–2021–42). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–02786 Filed 2–9–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94156; File No. SR–FINRA– 

2022–002] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Eliminate the 

Transaction Query Fee for the FINRA/ 

Nasdaq TRF 

February 4, 2022. 

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 January 

31, 2022, the Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by FINRA. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA is proposing to amend FINRA 

Rule 7620A (FINRA/Nasdaq Trade 

Reporting Facility Reporting Fees) to 

modify the query fee applicable to nonretail participants that use the FINRA/ 

Nasdaq Trade Reporting Facility 

Carteret (the ‘‘FINRA/Nasdaq TRF 

Carteret’’) and the FINRA/Nasdaq Trade 

Reporting Facility Chicago (the ‘‘FINRA/ 

Nasdaq TRF Chicago’’) (collectively, the 

‘‘FINRA/Nasdaq TRF’’). 

The text of the proposed rule change 

is available on FINRA’s website at 

http://www.finra.org, at the principal 

office of FINRA and at the 

Commission’s Public Reference Room. 

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 

The FINRA/Nasdaq TRF is a facility 

of FINRA that is operated by Nasdaq, 

Inc. (‘‘Nasdaq’’). In connection with the 

establishment of the FINRA/Nasdaq 

TRF, FINRA and Nasdaq entered into a 

limited liability company agreement 

(the ‘‘LLC Agreement’’). Under the LLC 

Agreement, FINRA, the ‘‘SRO Member,’’ 

has sole regulatory responsibility for the 

FINRA/Nasdaq TRF. Nasdaq, the 

‘‘Business Member,’’ is primarily 

responsible for the management of the 

FINRA/Nasdaq TRF’s business affairs, 

including establishing pricing for use of 

the FINRA/Nasdaq TRF, to the extent 

those affairs are not inconsistent with 

the regulatory and oversight functions of 

FINRA. Additionally, the Business 

Member is obligated to pay the cost of 

regulation and is entitled to the profits 

and losses, if any, derived from the 

operation of the FINRA/Nasdaq TRF. 

Pursuant to FINRA Rule 7620A 

(‘‘Rule’’), FINRA/Nasdaq TRF 

participants that do not constitute Retail 

Participants 3 (such non-Retail 

Participants are referred to herein as 

‘‘Participants’’) must pay a $0.50/query 

fee for each FINRA/Nasdaq TRF 

transaction query. FINRA members use 

WebLink ACT/Nasdaq Workstation Post 

Trade (‘‘WebLink’’) 4, Act Workstation 

(‘‘Workstation’’) 5, and Nasdaq 

WorkXTM (‘‘WorkX’’) 6 in connection 

with FINRA/Nasdaq TRF reporting.7

According to the Business Member, 

these products permit members to 

perform data searches on reported 

transactions, which members use to 

monitor large volumes of data in 

furtherance of performing their 

regulatory responsibilities. 

Nasdaq administers this Rule in its 

capacity as the Business Member and 

operator of the FINRA/Nasdaq TRF on 

behalf of FINRA,8 and Nasdaq collects 

all fees on behalf of the FINRA/Nasdaq 

TRF. Nasdaq has determined to modify 

the current schedule of fees by removing 

the 0.50/query fee applicable to FINRA/ 

Nasdaq TRF transaction queries 

performed using WebLink, Workstation, 

and WorkX, and FINRA is proposing to 

amend the Rule accordingly. Nasdaq has 

determined to eliminate this fee to allow 

users to make maximum use of the 

query tool available in WebLink, 


jspears on DSK121TN23PROD with NOTICES1
7884 Federal Register / Vol. 87, No. 28 / Thursday, February 10, 2022 / Notices 

9 15 U.S.C. 78o–3(b)(5). 

10From October 2020 to September 2021, 303 

Participants were charged WebLink, Workstation, or 

WorkX query fees for scan searches. 

11This discussion of economic impacts does not 

relate to any fee other than the $0.50/query fee that 

is proposed to be eliminated in the instant filing. 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(2). 14 17 CFR 200.30–3(a)(12). 

Workstation, and WorkX, thereby 

supporting member compliance efforts. 

FINRA has filed the proposed rule 

change for immediate effectiveness. The 

operative date will be February 1, 2022. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(5) of the Act,9 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 is reasonable because it 

eliminates the existing query feepermitting members to use the tool 

without incurring a separate charge. 

FINRA believes that the proposal is an 

equitable allocation of reasonable fees 

and is not unfairly discriminatory 

because removal of the query fee applies 

equally to all users of WebLink, 

Workstation, and WorkX, and it 

eliminates any impediment to users 

freely utilizing the query functionreducing members’ costs associated 

with monitoring trade reporting activity 

and satisfying regulatory 

responsibilities. Moreover, participation 

in the FINRA/Nasdaq TRF is voluntary, 

as is the use of the query feature. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule changes will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Regulatory Need 

As discussed above, Nasdaq believes 

that eliminating this fee will increase 

the usability of the query tool. Nasdaq 

believes it is beneficial for users to be 

able to perform unlimited queries of 

their trade history at no cost in support 

of meeting their regulatory 

responsibilities. 

Economic Baseline 

From October 2020 to September 

2021, on average, approximately 200 

Participants paid on average $200 per 

month in WebLink, Workstation, and 

WorkX query charges.10

Economic Impacts 

The proposed rule change would 

eliminate query charges to all firms 

using WebLink, Workstation, and 

WorkX services.11 The number of firms 

charged query fees each month varies 

based on the level of product usage and 

scans by individual subscribers. 

Assuming that, going forward, these 

same Participants maintain their 

existing levels of query activity, they 

stand to save on average $200 per month 

in query charges. 

The potential net impact of the 

proposed rule change depends on 

whether Participants alter their query 

activity as a result of the proposed rule 

change. Thus, Participants who 

continue to perform queries in line with 

prior usage will reap corresponding 

benefits. However, to the extent that the 

proposed rule change results in 

Participants performing more queries, 

then the potential net benefit will be 

greater. 

Alternatives Considered 

No other alternatives were considered 

for the proposed rule change. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or 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 12 and paragraph (f)(2) of Rule 

19b–4 thereunder.13 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

FINRA–2022–002 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 

Number SR–FINRA–2022–002. 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 website (http://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 website 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. Persons 

submitting comments are cautioned that 

we do not redact or edit personal 

identifying information from comment 

submissions. You should submit only 

information that you wish to make 

available publicly. 

All submissions should refer to File 

Number SR–FINRA–2022–002 and 

should be submitted on or before March 

3, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–02784 Filed 2–9–22; 8:45 am] 

BILLING CODE 8011–01–P 


jspears on DSK121TN23PROD with NOTICES1