Michael McGuire, Tradeweb Direct LLC
May 16, 2016
Mr. Michael McGuire
Chief Compliance Officer
Tradeweb Direct LLC
1177 Avenue of the Americas
New York, NY 10036
Re: Application for Exemptive Relief from Trade Reporting Obligation for Certain Transactions on an Alternative Trading System
Dear Mr. McGuire:
The Market Regulation Department of FINRA (the “staff”) has received and reviewed your letter dated May 10, 2016, in which Tradeweb Direct LLC (“Tradeweb Direct”) 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 Tradeweb Direct providing the items listed below, the staff has determined that Tradeweb Direct meets the specified criteria and hereby grants, pursuant to FINRA Rule 9610, Tradeweb Direct an exemption 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.
- Within 60 days of this letter, Tradeweb Direct must provide to FINRA a written attestation that it has entered into written agreements as required by FINRA Rule 6731(a)(5) with all of its FINRA member subscribers that will be parties to an exempt transaction. In addition, within 60 days of this letter, Tradeweb Direct must provide to FINRA a sample of at least two such agreements.1
- By September 14, 2016, Tradeweb Direct shall provide to FINRA data relating to each transaction exempted pursuant to FINRA Rule 6732 occurring on Tradeweb Direct for the period from July 18, 2016 through July 31, 2016 and for the month of August 2016. Thereafter, Tradeweb Direct 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 6731(a)(5), described in Item 1 above. If Tradeweb Direct 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.
Executive Vice President
Market Regulation Department
1. Tradeweb Direct 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).