FINRA Proposes New Amendments to TRF Reporting Fees

FINRA replaced its withdrawn November 16, 2015 filing with proposed amendments to FINRA Rule 7620A ("FINRA/Nasdaq Trade Reporting Facility Reporting Fees"). The amendments would modify certain fees applicable to members that use the FINRA/Nasdaq Trade Reporting Facility (the "FINRA/Nasdaq TRF").

FINRA stated that its amendments to Rule 7620A would "reflect the new Media/Contra fee cap" proposed by NASDAQ "in recognition of a new kind of trading behavior that has emerged in the marketplace." Additionally, FINRA stated, "some firms that act as market makers may route orders to an alternative trading system" ("ATS") for execution within that ATS. According to FINRA, "[s]uch market makers may have trade volume reported to the FINRA/Nasdaq TRF; however, these executions would not qualify the market maker for a fee cap under the existing rules because the ATS is the Executing Party on the trades."

FINRA filed the proposed amendments for immediate effectiveness.