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7030. Trade Reporting and Compliance Engine (TRACE)

This rule is no longer applicable. NASD Rule 7030 has been superseded by FINRA Rule 7730. Please consult the appropriate FINRA Rule.

The following charges shall be paid by participants for the use of the Trade Reporting and Compliance Engine ("TRACE"):
System Fees Transaction Reporting Fees Market Data Fees
Level I Trade Report Only Web Browser Access — $20/month per user ID

Level II Full Service Web Browser Access — $80/month per user ID, except that the charge for the first such user ID shall be $50/month
Trades up to and including $200,000 par value — $0.475/trade;

Trades between $201,000 and $999,999 par value — $0.002375 times the number of bonds traded/trade;

Trades of $1,000,000 par value or more — $2.375/trade
BTDS Professional Real-Time Data Display — $60/month per terminal, or a flat fee of $7,500/month entitling Professionals to make unlimited internal use of Real-Time TRACE transaction data on any number of interrogation or display devices
CTCI/Third Party — $25/month/per firm Cancel/Correct — $1.50/trade Vendor Real-Time Data Feed — $1,500/month for receipt of continuous Real-Time TRACE transaction data, except for qualifying Tax-Exempt Organizations, or $250/month for daily receipt of Snapshot Real-Time TRACE transaction data
   "As of" Trade Late — $3/trade Vendor Real-Time Data Feed — $400/month for Real-Time TRACE transaction data for qualifying Tax-Exempt Organizations
      BTDS Non-Professional Real-Time Data Display — No charge
(a) System Related Fees
There are three methods by which a member may report corporate bond transactions that are reportable to NASD pursuant to the Rule 6200 Series. A member may choose among the following methods to report data to NASD: (1) a TRACE web browser; (2) a Computer-to-Computer Interface ("CTCI") (either one dedicated solely to TRACE or a multi-purpose line); or (3) a third-party reporting intermediary. Fees will be charged based on the reporting methodology selected by the member.
(1) Web Browser Access
The charge to be paid by a member that elects to report TRACE data to NASD via a TRACE web browser shall be as follows: $20 per month, per user ID for Level I Web Trade Report Only Browser Access and $80 per month, per user ID for Level II Full Service Web Browser Access, except that the charge for the first such user ID for Level II Full Service Web Browser Access shall be $50 per month.
(2) Computer-to-Computer Interface Access
The charge to be paid by a member that elects to report TRACE data to NASD via a CTCI line shall be $25 per month, per firm, regardless of whether the line is or is not dedicated exclusively for TRACE.1
(3) Third Party Access — Indirect Reporting
A member may elect to report TRACE data indirectly to NASD via third-party reporting intermediaries, such as vendors, service bureaus, clearing firms, or the National Securities Clearing Corporation ("NSCC"). The charge to be paid by a member shall be $25 per month, per firm. Nothing in this Rule shall prevent such third-party intermediaries from charging additional fees for their services.
(b) Transaction Reporting Fees
For each transaction in corporate bonds that is reportable to NASD pursuant to the Rule 6200 Series, the following charges shall be assessed against the member responsible for reporting the transaction:
(1) Trade Reporting Fee
A member shall be charged a Trade Reporting Fee based upon a sliding scale ranging from $0.475 to $2.375 per transaction based on the size of the reported transaction. Trades up to and including $200,000 par value will be charged a $0.475 fee per trade; trades between $201,000 par value and $999,999 par value will be charged a fee of $0.002375 multiplied by the number of bonds traded per trade; and trades of $1,000,000 par value or more will be charged a fee of $2.375 per trade.
(2) Cancel or Correct Trade Fee
A member shall be charged a Cancel or Correct Trade Fee of $1.50 per canceled or corrected transaction.
(3) "As of" Trade Late Fee
A member shall be charged an "As of" Trade Late Fee of $3.00 per transaction for those transactions that are not timely reported "As of" as required by these rules.
(c) Market Data Fees
Professionals and Non-Professionals may subscribe to receive Real-Time TRACE transaction data disseminated by NASD in one or more of the following ways for the charges specified, as applicable. Members, vendors and other redistributors shall be required to execute appropriate agreements with NASD.
(1) Professional Fees
Professionals may subscribe for the following:
(A) Bond Trade Dissemination Service ("BTDS") Professional Real-Time Data Display Fee of $60 per month, per terminal charge for each interrogation or display device receiving Real-Time TRACE transaction data, or a flat fee of $7,500 per month entitling Professionals to make unlimited internal use of Real-Time TRACE transaction data on any number of interrogation or display devices.
(B) Vendor Real-Time Data Feed Fee of $1,500 per month for receipt of continuous Real-Time TRACE transaction data for any person or organization (other than a Tax-Exempt Organization) that receives a Real-Time TRACE transaction data feed, or $250 per month for daily receipt of Snapshot Real-Time TRACE transaction data which shall consist of one TRACE price per security per day. These fees entitles use in one or more of the following ways: internal operational and processing systems, internal monitoring and surveillance systems, internal price validation, internal portfolio valuation services, internal analytical programs leading to purchase/sale or other trading decisions, and other related activities, and the repackaging of market data for delivery and dissemination outside the organization, such as indices or other derivative products. (These fees do not include per terminal charges for each interrogation or display device receiving Real-Time TRACE transaction data.)2
(C) Vendor Real-Time Data Feed Fee of $400 per month for Real-Time TRACE transaction data received by a Tax-Exempt Organization as defined in Rule 7030(c) for the Tax-Exempt Organization to use solely to provide Non-Professionals access to Real-Time TRACE transaction data at no charge.
(D) A natural person otherwise subject to market data fees under Rule 7030(c) is not subject to such fees when he or she accesses and uses TRACE transaction data solely for his or her personal, non-commercial use.
(2) Non-Professional Fees
There shall be no charge paid by a Non-Professional for receiving all or any portion of Real-Time TRACE transaction data disseminated through TRACE.
(3) Definitions
(A) "Non-Professional" — As used in Rule 7030(c) a "Non-Professional" is a natural person who uses TRACE transaction data solely for his or her personal, non-commercial use. A Non-Professional subscriber must agree to certain terms of use of the TRACE data, including that he or she receive and use the TRACE transaction data solely for his or her personal, non-commercial use. As used in Rule 7030(c) a "Non-Professional" is not:
i. registered nor qualified in any capacity with the Commission, the Commodity Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association, nor an employee of the above and, with respect to any person identified in this subparagraph i., uses TRACE transaction data for other than personal, non-commercial use;
ii. engaged as an "investment adviser" as that term is defined in Section 202 (a)(11) of the Investment Advisers Act of 1940 (whether or not registered or qualified under that Act), nor an employee of the above and, with respect to any person identified in this subparagraph ii., uses TRACE transaction data for other than personal, non-commercial use;
iii. employed by a bank, insurance company or other organization exempt from registration under federal or state securities laws to perform functions that would require registration or qualification if such functions were performed for an organization not so exempt, nor any other employee of a bank, insurance company or such other organization referenced above and, with respect to any person identified in this subparagraph iii., uses TRACE transaction data for other than personal, non-commercial use; nor
iv. engaged in, nor has the intention to engage in, any redistribution of all or any portion of the TRACE transaction data.

(B) "Tax-Exempt Organization" as used in Rule 7030(c) means an organization that is described in Section 501(c) of the Internal Revenue Code (26 U.S.C. §501(c)); has received recognition of the exemption from federal income taxes from the Internal Revenue Service; and obtains and uses Real-Time TRACE transaction data solely for redistribution to Non-Professionals, as defined for purposes of Rule 7030(c), at no charge.
(C) "Real-Time" as used in Rule 7030(c) shall mean that period of time starting from the time of dissemination by NASD of transaction data on a TRACE-eligible security, and ending no more than four hours thereafter.
(4) Other Requests for Data
NASD may impose and collect charges for data NASD supplied upon request, where there is no provision elsewhere in this Rule 7030(c) for charges for such service or sale.

1 Charges that may be imposed by third parties, such as CTCI line providers, are not included in these fees.

2 Under the Vendor Real-Time Data Feed Fee and service, Real-Time TRACE transaction data may not be used in any interrogation display devices or any systems that permit end users to determine individual transaction pricing.

Amended by SR-NASD-2007-004 eff. May 1, 2007.
Amended and renumbered as Rule 7030 by SR-NASD-2007-018 eff. March 5, 2007.
Amended by SR-NASD-2005-063 eff. Oct. 1, 2005.
Amended by SR-NASD-2005-083 eff. June 23, 2005.
Amended by SR-NASD-2005-026 eff. June 1, 2005.
Amended by SR-NASD-2004-189 eff. Feb 7 and June 1, 2005.
Amended by SR-NASD-2004-163 eff. Oct. 29, 2004.
Amended by SR-NASD-2003-157 eff. Feb. 1, 2004.
Amended by SR-NASD-2003-097 eff. June 27, 2003.
Amended by SR-NASD-2003-025 eff. Feb. 27, 2003.
Amended by SR-NASD-2002-176 eff. Dec. 13, 2002.
Amended by SR-NASD-2002-167 eff. Oct. 1, 2002.
Adopted as Rule 7010(k) by SR-NASD-2002-063 eff. July 1, 2002.

Selected Notices: 02-81, 04-06, 05-05, 05-3705-52, 07-15.

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