Document ID: SEC-2022-1658-0001
Agency: sec
Document Type: Notice
Title: Order Scheduling Filing of Statements on Review: Financial Industry Regulatory Authority, Inc.
Posted Date: 2022-12-23T05:00Z

[Federal Register Volume 87, Number 246 (Friday, December 23, 2022)]
[Notices]
[Pages 79014-79015]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27959]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96541/December 20, 2022]

Order Scheduling Filing of Statements on Review; In the Matter of 
the Financial Industry Regulatory Authority, Inc. for an Order Granting 
the Approval of Proposed Rule Change, as Modified by Amendment No. 2, 
To Establish a Corporate Bond New Issue Reference Data Service (File 
No. SR-FINRA-2019-008)

    On January 15, 2021, the Commission issued an order (``Approval 
Order'') approving a proposed rule change (``Proposal'') by Financial 
Industry Regulatory Authority, Inc. (``FINRA'') to establish a new 
issue reference data service for corporate bonds.\1\ Bloomberg L.P. 
(``Bloomberg'') filed a petition for review of the Approval Order in 
the U.S. Court of Appeals for the District of Columbia Circuit (``D.C. 
Circuit''), challenging the Commission's Approval Order.
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    \1\ See Exchange Act Release No. 90939 (Jan. 15, 2021), 86 FR 
6922 (Jan. 25, 2021) (Order Setting Aside Action by Delegated 
Authority and Approving a Proposed Rule Change, as Modified by 
Amendment No. 2, To Establish a Corporate Bond New Issue Reference 
Data Service).
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    The D.C. Circuit found that all but one of Bloomberg's arguments 
lacked merit. Specifically, the D.C. Circuit concluded that the 
Approval Order failed to sufficiently consider Bloomberg's ``concerns 
about the costs that FINRA, as well as market participants, will incur 
in connection to the creation and maintenance of the data service.'' 
\2\ The D.C. Circuit remanded to the Commission for reconsideration of 
this issue, but did not vacate the Approval Order.\3\
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    \2\ Bloomberg L.P. v. SEC, 45 F.4th 462, 466 (D.C. Cir. 2022).
    \3\ Id. at 478.
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    The court stated that ``on remand, `the Commission can redress its 
failure of explanation' by analyzing the costs FINRA will incur in 
building and maintaining its data service and how the costs of building 
the data service will be remunerated if the fee proposal is ultimately 
disapproved by the Commission.'' \4\ The D.C. Circuit's mandate, which 
was issued on October 11, 2022, returned the matter to the Commission 
for further proceedings.\5\
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    \4\ Id. at 477.
    \5\ Doc. No. 1968395, Case No. 21-1088 (D.C. Cir. Oct. 11, 
2022).
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    Accordingly, to facilitate the Commission's further review of the 
Proposal, it is ordered, that by January 19, 2023, FINRA may submit any 
additional statements or information that it considers relevant to the 
Commission's analysis of the issue on remand, including the costs FINRA 
expects to incur in building and maintaining its data service and how 
the costs of building the data service would be remunerated if the fee 
proposal is ultimately disapproved by the Commission.
    Furthermore, the Commission is providing other parties and persons 
30 days to respond to any additional statements or information FINRA 
may submit.
    Accordingly, it is ordered, that by February 18, 2023, any party or 
other person may submit any additional statements or information such 
party or other person considers relevant to the issue on remand.

[[Page 79015]]

    By the Commission.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-27959 Filed 12-22-22; 8:45 am]
BILLING CODE 8011-01-P