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  • Immediately Effective Rule Changes Pending Issuance of a Regulatory Notice

    • SR-FINRA-2017-011

      • 6897. Consolidated Audit Trail Funding Fees

        (a) Definitions
        (1) For purposes of the Consolidated Audit Trail Funding Fees, the terms "CAT NMS Plan", "Industry Member", "NMS Stock", "OTC Equity Security" and "Participant" are defined as set forth in the Rule 6810 (Consolidated Audit Trail—Definitions).
        (2) "ATS" means an alternative trading system as defined in Rule 300(a) of SEC Regulation ATS under the Securities Exchange Act of 1934, as amended, that operates pursuant to Rule 301 of SEC Regulation ATS.
        (3) "CAT Fee" means the Consolidated Audit Trail Funding Fee(s) to be paid by Industry Members as set forth in paragraph (b) of this Rule.
        (4) "Equity ATS" is an ATS that executes transactions in NMS Stocks and/or OTC Equity Securities.
        (5) "Equity Execution Venue" means an Execution Venue that trades NMS Stocks and/or OTC Equity Securities.
        (6) "Execution Venue" means a Participant or an ATS (excluding any such ATS that does not execute orders).
        (b) Fee Schedule
        (1) The CAT NMS, LLC will assign each Industry Member (other than an Equity ATS) to a fee tier once every quarter, where such tier assignment is calculated by ranking each Industry Member based on its total message traffic for the three months prior to the quarterly tier calculation day and assigning each Industry Member to a tier based on that ranking and predefined Industry Member percentages. The Industry Members with the highest total quarterly message traffic will be ranked in Tier 1, and the Industry Members with lowest quarterly message traffic will be ranked in Tier 9. Each quarter, each Industry Member (other than an Equity ATS) shall pay the following CAT Fee corresponding to the tier assigned by the CAT NMS, LLC for such Industry Member for that quarter:

        Tier Percentage of Industry Members Quarterly CAT Fee
        1 0.500% $101,004
        2 2.500% $81,153
        3 2.125% $57,717
        4 4.625% $19,965
        5 3.625% $12,489
        6 4.000% $7,680
        7 17.500% $1,503
        8 20.125% $435
        9 45.000% $66

        (2) The CAT NMS, LLC will assign each Equity ATS to a fee tier once every quarter, where such tier assignment is calculated by ranking each Equity Execution Venue based on its total market share of NMS Stocks and OTC Equity Securities for the three months prior to the quarterly tier calculation day and assigning each Equity Execution Venue to a tier based on that ranking and predefined Equity Execution Venue percentages. The Equity Execution Venues with the higher total quarterly market share will be ranked in Tier 1, and the Equity Execution Venues with the lower quarterly market share will be ranked in Tier 2. Each quarter, each Equity ATS shall pay the following CAT Fee corresponding to the tier assigned by the CAT NMS, LLC for such Equity ATS for that quarter:

        Tier Percentage of Equity Execution Venues Quarterly CAT Fee
        1 25.00% $63,375
        2 75.00% $38,820
        (c) Timing and Manner of Payments
        (1) The CAT NMS, LLC will provide each Industry Member with one invoice each quarter for its CAT Fees as determined pursuant to paragraph (b) of this Rule, regardless of whether the Industry Member is a member of multiple self-regulatory organizations. Each Industry Member will pay its CAT Fees to the CAT NMS, LLC via the centralized system for the collection of CAT Fees established by the CAT NMS, LLC in the manner prescribed by the CAT NMS, LLC.
        (2) Each Industry Member shall pay CAT Fees within thirty days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If an Industry Member fails to pay any such fee when due, such Industry Member shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of (i) the Prime Rate plus 300 basis points, or (ii) the maximum rate permitted by applicable law.
        Adopted by SR-FINRA-2017-011.