Notice to Members 05-37 - May 2005

NASD Restructures Certain TRACE Fees for Market Data and Amends the Definition of "Non-Professional" in Connection with TRACE Market Data; Effective Date: June 1, 2005

Executive Summary

On April 26, 2005, the SEC approved amendments to Rule 7010(k) relating to Transaction Reporting and Compliance Engine (TRACE) market data to restructure fees for TRACE market data, to amend the definition of "Non-Professional" in connection with TRACE market data, and to make other conforming or minor, technical changes to the rule (the amendments).1 In amended Rule 7010(k)(3)(A)(ii), NASD establishes a new fee, the Vendor Real-Time Data Feed Fee, which allows TRACE data subscribers to receive a real-time feed of TRACE transaction data (Real-Time Feed) that the subscriber may use in multiple applications. The Vendor Real-Time Data Feed Fee is $1,500 per month, except for qualifying Tax-Exempt Organizations. Amended Rule 7010(k)(3)(A)(iii) provides that qualifying Tax-Exempt Organizations will pay $400 per month, but will be subject to significant restrictions on their use of the Real-Time Feed.

 

Also, NASD is eliminating two market data fees, the $500 per month Bond Trade Dissemination Service (BTDS) Internal Usage Authorization Fee (per application or use) and the $1,000 per month BTDS External Usage Authorization Fee (per application or use), amending the defined term Non-Professional in Rule 7010(k)(3)(C)(i) in connection with TRACE market data, and making other conforming or minor, technical amendments to Rule 7010(k).

 

Rule 7010(k), as amended, is set forth in Attachment A. The effective date of the amendments is June 1, 2005.

 

Questions concerning this Notice should be directed to TRACE Feedback; Elliot Levine, Associate Vice President, Chief Counsel, Transparency Services, Markets, Services and Information, at 202-728-8405; or Sharon K. Zackula, Associate General Counsel, Office of General Counsel, Regulatory Policy and Oversight, at 202-728-8985.