HelpFINRA Manual: Contents
FINRA Manual
Corporate Organization Notices
2002
02-85 NASD Requires Immediate Member Firm Action Regarding Mutual Fund Purchases and Breakpoint Schedules
02-79 NASD Notice of Meeting and Proxy (A proxy package was sent to each NASD Executive Representative on November 4)
02-78 NASD Adopts Amendments to Rule 3011 to Require Members to Provide to NASD Contact Information for an Anti-Money Laundering Compliance Person(s)
02-77 SEC Approves Rule Establishing New Registration Category for Proctors of In-Firm Delivery of the Regulatory Element
02-76 NASD Issues Interpretive Guidance to the Trade Reporting and Compliance Engine Rules (TRACE Rules)
02-71 NASDAQ Provides Guidance on Recent Amendments to "Trade-or-Move" Rule and SuperMontage Opening Process
02-68 Industry parties in California arbitration proceedings must waive contested California arbitrator disclosure standards if all parties who are investors, or associated persons with claims of statutory employment discrimination, have executed waiver agreements
02-67 Broker/Dealer, Investment Adviser Firm, Agent and Investment Adviser Representative Renewals for 2003
02-64 NASD Advises Members that Participation in Tying Arrangements that Violate Federal Statutes Also Violate Just and Equitable Principles of Trade; Requests Information Concerning Such Practices
02-63 NASD Provides Additional Information on Amendments to Section 8 of Schedule A to NASD's By-Laws to Eliminate the Regulatory Fee and to Implement a New Transaction-Based Trading Activity Fee as Announced in Notice to Members 02-41
02-62 NASD Announces Nominees for Regional Industry Member Vacancies on the National Adjudicatory council
02-58 SEC Approves Default Procedures Regarding Suspended or Terminated Respondents Who Fail to Answer Arbitration Claims
02-55 NASD Requests Comment on Proposed New Rule 2712 (IPO Allocations and Distributions) and on an Amendment to Rule 2710 (Corporate Financing Rule)
02-53 NASD Files Proposal to Amend Rule 3070 to Require Filing of Criminal and Civil Complaints and Arbitration Claims with NASD; Revises Letters Sent When Determination Made to Close an Investigation Without Further Action
02-52 NASD Requests Comment on Proposed Amendments to NASD Rule 3010(g)(2) ("Branch Office Definition")
02-51 NASD Requests Comment on Proposed Interpretative Material Regarding Investment Analysis Tools.
02-50 Treasury and SEC Request Comment on Proposed Regulation Regarding Broker/Dealer Anti-Money Laundering Customer Identification Requirements
02-49 NASD Adopts Amendments to IM-8310-2 Concerning Release of Disciplinary Information to the Public
02-48 NASD Amends Section 4 of Schedule A to the NASD By-Laws to Establish a Late Fee for Failure to Pay Annual Renewal Fees on a Timely Basis
02-46 NASD Announces Nomination Procedures for Regional Industry Member Vacancy on the National Adjudicatory Council
02-41 NASD Informs Members of Proposed Changes to NASD's Gross Income Assessment, Personnel Assessment, and Regulatory Fee
02-37 NASD Informs Members of Upcoming District Committee and District Nominating Committee Elections
02-35 NASD Adopts Amendments Regarding the Posting of Margin Disclosure and Day-Trading Risk Disclosure Statements on Web Sites
02-34 SEC Approves Proposed Changes to Rule 3070 Concerning the Reporting of Criminal Offenses by Members and Persons Associated with Members
02-33 SEC Approves Amendments to NASD Rule 2260 Requiring Broker/Dealers to Forward Information Regarding Debt Securities to Beneficial Owners
02-32 SEC Approves NASD Rule Requiring Members to Require Investors to Sign a Disclosure Document as Part of a Subordinated Loan Agreement
02-28 Member Obligations Regarding Long-Term Or Brokered Certificates Of Deposit (Note: This Notice is superseded by Notice to Members 02-69)
02-26 SEC Approves Rule Change Requiring Members To File Information With The Corporate Financing Department Through Its Electronic Filing System
02-23 The NASD Seeks Comment On Proposed Rules Relating To Member Firm Business Continuity Plans And Emergency Contact Information
02-22 Securities Industry/Regulatory Council On Continuing Education Issues A Status Report On The Securities Industry Continuing Education Program
02-21 NASD Provides Guidance To Member Firms Concerning Anti-Money Laundering Compliance Programs Required By Federal Law
02-20 SEC Approves Technical Changes To Forms U-4 And U-5 And Amendment To NASD Interpretive Material 8310-2
02-12 NASD Regulation Adopts Amendments To Relieve Registered Representatives Serving In The Armed Forces From Continuing Education Requirements
02-11 NASD Dispute Resolution Establishes A New Hearing Location In Orlando, Florida, For Arbitration And Mediation Claims Filed In Its Forum
02-07 NASD Regulation Adopts Interpretive Material Prohibiting Interference With The Transfer Of Customer Accounts In The Context Of Employment Disputes
02-05 Changes To FOCUS Resulting From Certain Disclosure And Asset Recognition Requirements Under FASB 140
02-04 NASD Regulation Asks Members Immediately To Adopt "Best Practice" Of Requiring Investors To Sign A Disclosure Document As Part Of Subordination Agreement
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02-81 NASD Reduces Certain TRACE Fees for the 4th Quarter of 2002
INFORMATIONAL
TRACE Fees
The fee changes are effective as of October 1, 2002
| SUGGESTED ROUTING |
KEY TOPICS |
|
Compliance |
Rule 7010(k) |
Executive Summary
On November 15, 2002, NASD submitted a rule filing (SR-NASD-2002-167) to the Securities and Exchange Commission (SEC) for immediate effectiveness to amend Rule 7010(k), reducing the Web Browser Access Fee, Cancel or Correct Fee, and "As of" Trade Late Fee for the TRACE system during the 4th quarter of 2002. The fee changes are effective as of October 1, 2002.1
Questions/Further Information
Questions concerning this Notice may be directed to Kosha K. Dalal, Assistant General Counsel, Office of General Counsel, NASD Regulatory Policy and Oversight, at (202) 728-6903; or Justin Tubiolo, Vice President, Regulatory Services and Operations, at (212) 858-4419.
Discussion
On July 1, 2002, the Trade Reporting and Compliance Engine (TRACE) became effective. On June 28, 2002, the Commission approved proposed NASD fees relating to the operation of the TRACE system (Rule 7010(k)) on a pilot basis for a six-month period expiring on December 28, 2002.2 As part of that rule filing (Amendment No. 3 to SR-NASD-2002-63), NASD committed to review and reassess the proposed TRACE fees as soon as practicable and within six months after the effective date of TRACE, based on such factors as actual volume, usage, costs, and revenues.
Based on an initial review of the TRACE fees, and input from member firms, on November 15, 2002, NASD submitted to the SEC for immediate effectiveness a rule change to reduce certain TRACE fees for the 4th quarter of 2002. The SEC published the rule filing in the Federal Register on December 3, 2002. The fee reductions are effective as of October 1, 2002.
The adjustments to the TRACE fee structure are:
Web Browser Access Fee. The current Web Browser Access Fee is $85 per month for the first user ID; $75 per month for the second through ninth user ID; and $70 per month for the second through ten or more user ID, if the member registers for ten or more user IDs. For the period commencing October 1, 2002 and ending December 31, 2002, for those firms that report less than 25 transactions per month, the Web Browser Access Fee has been reduced to $25 per month, per user ID.
Cancel or Correct Fee. The current Cancel or Correct Fee is $3.00 for each canceled or corrected transaction reported. For the month of October 2002, the Cancel or Correct Fee has been reduced to $1.50 for each canceled or corrected transaction reported. For the month of November 2002, the Cancel or Correct Fee has been reduced to $2.25 for each canceled or corrected transaction reported. For the month of December 2002, the Cancel or Correct Fee will return to $3.00 for each cancelled or corrected transaction reported.
"As of" Trade Late Fee. The current "As of" Trade Late Fee is $3.00 for each trade that is not timely reported. For the month of October 2002, the "As of" Trade Late Fee has been reduced to $1.50 for each such transaction reported. For the month of November 2002, the "As of" Trade Late Fee has been reduced to $2.25 for each such transaction reported.
NASD believes that these fee adjustments will alleviate some of the immediate burden on small firms resulting from TRACE reporting requirements and grant all firms additional time to adjust to the Cancel or Correct Fee and the "As of" Trade Late Fee.
NASD is in the process of reviewing the entire TRACE fee structure and expects to submit additional proposed amendments to TRACE fees to the SEC prior to the December 28, 2002 expiration of the pilot program. Future fee adjustments will be announced in Notices to Members.
1 See SR-NASD-2002-167 (November 15, 2002), Exchange Act Release No. 46893, 67 FR 232 (December 3, 2002).
2 The Commission approved Rule 7010(k) relating to TRACE fees on June 28, 2002 on a six-month pilot basis. See SEC Approval Order File No. SR-NASD-2002-63, Securities Exchange Act Release No. 46145.
Attachment A
New text is underlined. Deletions are in brackets.
Proposed New Text of Rule 7010(k) - Trade Reporting and Compliance Engine (TRACE)
Rule 7010(k) Trade Reporting and Compliance Engine (TRACE)
| System Fees | Transaction Reporting Fees | Market Data Fees |
| Web Browser Access: $85/month for 1 user ID; $75/month for 2-9 user IDs; $70/month for 2-10+ user IDs If less than 25 trades per month, in October, November, or December 2002 - $25/month per user ID |
Trades up to and including $200,000 par value - $0.50/trade; Trades between $201,000 and $999,999 par value - $0.0025 times the number of bonds traded/trade; Trades of $1,000,000 par value or more - $2.50/trade |
BTDS Professional Display - $60/month per terminal |
| CTCI - $25/month/line | Cancel/Correct - $3/trade For October 2002 - $1.50/trade For November 2002 - $2.25/trade |
BTDS Internal Usage Authorization - $500/month per organization |
| Third Party - $25/month | "As of" Trade Late - $3/trade For October 2002 - $1.50/trade For November 2002 - $2.25/trade |
BTDS External Usage Authorization - $1,000/month per organization |
| PDN Administrative - $100/month/line | Browse & Query - $0.05 after first page | BTDS Non-Professional Display - $1/month per terminal |
| Daily List Fax - $15/month per fax number/addressee |
1 Charges that may be imposed by third parties, such as network providers, are not included in these fees.
