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[Federal Register Volume 90, Number 3 (Monday, January 6, 2025)]
[Notices]
[Pages 700-701]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-31612]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-102053; File No. SR-FINRA-2024-023]

Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend FINRA Rule 6897 (Consolidated Audit Trail 
Funding Fees) To Establish Fees for Industry Members Related to 
Prospective Costs of the National Market System Plan Governing the 
Consolidated Audit Trail

December 30, 2024.
    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 December 20, 2024, the Financial Industry Regulatory Authority, Inc. 
(``FINRA'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Item I below, 
which Item has been substantially prepared by FINRA. FINRA has 
designated this proposal for immediate effectiveness pursuant to 
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f) thereunder.\4\ The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f). 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 will institute proceedings to determine whether the 
proposed rule change should be approved or disapproved.

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[[Page 701]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    FINRA is proposing to amend FINRA Rule 6897 (Consolidated Audit 
Trail Funding Fees) to establish fees for Industry Members \5\ related 
to reasonably budgeted Consolidated Audit Trail (``CAT'') costs of the 
National Market System Plan Governing the Consolidated Audit Trail (the 
``CAT NMS Plan'' or ``Plan'') for 2025. These fees would be payable to 
Consolidated Audit Trail, LLC (``CAT LLC'' or the ``Company'') and 
referred to as ``CAT Fee 2025-1.''
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    \5\ An ``Industry Member'' is defined as ``a member of a 
national securities exchange or a member of a national securities 
association.'' See FINRA Rule 6810(u). See also Section 1.1 of the 
CAT NMS Plan. Unless otherwise specified, capitalized terms used in 
this rule filing are defined as set forth in the CAT NMS Plan and/or 
the CAT Compliance Rule. See FINRA Rule 6800 Series (Consolidated 
Audit Trail Compliance Rule).
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    The fee rate for CAT Fee 2025-1 would be $0.000022 per executed 
equivalent share. CAT Executing Brokers will receive their first 
monthly invoice for CAT Fee 2025-1 in February 2025 calculated based on 
their transactions as CAT Executing Brokers for the Buyer (``CEBB'') 
and/or CAT Executing Brokers for the Seller (``CEBS'') in January 2025. 
CAT Fee 2025-1 is anticipated to be in place for six months, and is 
anticipated to recover approximately one-half of the costs set forth in 
the reasonably budgeted CAT costs for 2025. CAT LLC intends for CAT Fee 
2025-1 to replace CAT Fee 2024-1 (which has a fee rate of 
$0.000035).\6\
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    \6\ See FINRA Rule 6897(a)(1)(C) of FINRA Rule Series 6800 
(Consolidated Audit Trail Compliance Rule). See also Securities 
Exchange Act Release No. 100881 (August 30, 2024), 89 FR 72478 
(September 5, 2024) (Notice of Filing and Immediate Effectiveness of 
File No. SR-FINRA-2024-011) (``Fee Filing for CAT Fee 2024-1'').
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    The proposed rule change, including FINRA's statement of the 
purpose of, and statutory basis for, the proposed rule change, is 
available on FINRA's website at https://www.finra.org, at the principal 
office of FINRA and on the Commission's website at https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking/finra?file_number=SR-FINRA-2024-023.

II. 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.\7\ Comments may be submitted 
electronically by using the Commission's internet comment form (https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking/finra?file_number=SR-FINRA-2024-023) or by sending an email to [email protected]. Please include file number SR-FINRA-2024-023 on the 
subject line. Alternatively, paper comments may be sent to Secretary, 
Securities and Exchange Commission, 100 F Street NE, Washington, DC 
20549-1090. All submissions should refer to file number SR-FINRA-2024-
023. 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 (https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking/finra?file_number=SR-FINRA-2024-023). Do not include personal 
identifiable information in submissions; you should submit only 
information that you wish to make available publicly. We may redact in 
part or withhold entirely from publication submitted material that is 
obscene or subject to copyright protection. All submissions should 
refer to file number SR-FINRA-2024-023 and should be submitted on or 
before January 27, 2025.
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    \7\ 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 a.m. and 3 p.m. Copies of the filing also will be 
available for inspection and copying at the principal office of SRO.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Stephanie J. Fouse,
Assistant Secretary.
[FR Doc. 2024-31612 Filed 1-3-25; 8:45 am]
BILLING CODE 8011-01-P
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