Co-authored by Natalya S. Zelensky
The Securities and Exchange Commission has approved proposed amendments to transaction reporting and notification requirements in the Financial Industry Regulatory Authority Rule 6700 Series and reporting fees in FINRA Rule 7730, which relate primarily to Asset-Backed Securities, and the method of calculating the Trading Activity Fee (TAF) for such securities in Schedule A of the FINRA By-Laws. FINRA’s Trade Reporting and Compliance Engine (TRACE) rules provide for the reporting of transactions in TRACE-Eligible Securities to TRACE, and the dissemination of transaction information, with some exceptions. FINRA Rule 7730 sets forth TRACE reporting and data fees. The TAF is a regulatory fee FINRA uses to fund its member regulation activities, including examinations, financial monitoring, and policymaking, rulemaking and enforcement activities. The effective date of the approved amendments is May 16.
Click here to read FINRA Regulatory Notice 11-20.