Joshua Hershman, Trumid Financial LLC

August 9, 2016

Mr. Joshua Hershman
Chief Operating Officer
Trumid Financial LLC
120 Broadway, 9th Floor
New York, NY 10271

 

Re: Application for Exemptive Relief from Trade Reporting Obligation for Certain Transactions on an Alternative Trading System

Dear Mr. Hershman:

The Market Regulation Department of FINRA (the “staff”) has received and reviewed your letter dated July 19, 2016, in which Trumid Financial LLC (“Trumid Financial”) requests exemptive relief from the FINRA trade reporting obligations pursuant to FINRA Rule 6732.

Based on the information provided in your application, and conditioned upon Trumid Financial providing the items listed below, the staff has determined that Trumid Financial meets the specified criteria and hereby grants, pursuant to FINRA Rule 9610, Trumid Financial an exemption for certain transactions on the Trumid Financial alternative trading system (ATS) from the trade reporting obligation under FINRA Rule 6730, subject to the monthly transaction reporting obligation and remission of the transaction reporting fees based on the fee schedule set forth in Rule 7730(b)(1) for each exempted sell transaction occurring on the ATS.

  1. Within 30 days of this letter, Trumid Financial must provide to FINRA a written attestation that it has entered into written agreements as required by FINRA Rule 6732(a)(5) with all of its FINRA member subscribers that will be parties to an exempt transaction.  Within 30 days of this letter, Trumid Financial must provide to FINRA a sample of at least two such agreements.1
  1. By October 14, 2016, Trumid Financial shall provide to FINRA data relating to each transaction exempted pursuant to FINRA Rule 6732 occurring on Trumid Financial for the months of August and September 2016.  Thereafter, Trumid Financial must provide such monthly trade information to FINRA and such information must be received by FINRA no later than the 10th business day following the completion of each calendar month.2

This exemption will be fully and finally effective upon the date that FINRA receives the written attestation and the sample of at least two written agreements as required by FINRA Rule 6732(a)(5), described in Item 1 above.  If Trumid Financial fails to provide such written attestation and sample agreements within this time frame, the exemption granted herein will be revoked unless otherwise expressly agreed to by FINRA.

This letter responds only to the issue you have raised based on the facts as you have described them, and does not address any other rule or interpretation of FINRA, or all the possible regulatory and legal issues involved.  Any changes in the facts or representations as you have described them will require further consideration and may cause us to reach a different conclusion.  You should contact FINRA immediately if there is a change in any of the facts or representations contained in your letter.  In addition, this exemption is subject to modification or revocation if at any time FINRA determines that such action is necessary or appropriate for the protection of investors.   

Should you have any questions about this letter, please contact Patrick Geraghty in Market Regulation at (240) 386-4973.

Sincerely,

Jon Kroeper
Executive Vice President
Market Regulation Department

 

1 Trumid Financial is reminded that it must retain the written agreements pursuant to its books and records obligations under FINRA rules, the Exchange Act, and applicable Exchange Act rules, and must be able to produce them to FINRA upon request.

2 See Regulatory Notice 16-15 (April 2016).