Regulatory Notice 08-72
FINRA Provides Guidance Concerning the Types of Securities Transactions Subject to the Regulatory Transaction Fee
FINRA is publishing this Notice to provide additional guidance on the types of securities transactions that are subject to a regulatory transaction fee under Section 3 of Schedule A to the FINRA By-Laws (Section 3).1 The regulatory transaction fee generally applies to sales of equity securities that are required to be promptly reported to the OTC Reporting Facility (ORF) (that is, subject to the 90-second reporting requirement), and to sales that are required to be reported to either the Alternative Display Facility (ADF) or a FINRA Trade Reporting Facility (TRF).2
Questions concerning this Notice should be directed to Kathleen A. O'Mara, Associate General Counsel, Finance, at (240) 386-5309, or Brant K. Brown, Associate General Counsel, Office of General Counsel, at (202) 728-6927.
1 See NASD Notice to Members 06-39 (SEC Approves Amendments Relating to Automated Reporting of Transactions Subject to Regulatory Transaction Fee) (August 2006); NASD Notice to Members 05-11 (NASD Issues Further Guidance Regarding Members' Obligations Under Section 3 of Schedule A to the NASD By-Laws; NASD Also Seeks Member Comment on Related Automation Issues) (February 2005); NASD Notice to Members 04-63 (New SEC Procedures Relating to Section 31 of the Securities Exchange Act of 1934) (August 2004); see also NASD Member Alert (June 27, 2007) (NASD Reiterates Guidance Regarding Member's Disclosure of Regulatory Transaction Fees under Section 3 of Schedule A to the NASD By-Laws).
2 Currently, there are three TRFs in operation: the FINRA/NASDAQ TRF, the FINRA/NSX TRF, and the FINRA/NYSE TRF.