Document ID: SEC-2019-0370-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Financial Industry Regulatory Authority, Inc.
Posted Date: 2019-04-01T04:00Z

[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