United States: FINRA Proposes New Rule On Data Products Offered By The NYSE

FINRA proposed new Rule 7640B ("Data Products Offered by NYSE"). The proposed Rule 7640B would:

• describe FINRA's practices with respect to the distribution of market data for OTC transactions in National Market System stocks; and
• identify NYSE products that distribute FINRA/NYSE Trade Reporting Facility ("TRF") data to third parties.

According to FINRA, Rule 7640B is "substantively identical" to Rule 7640A ("Data Products Offered by NASDAQ"), which concerns the distribution of FINRA/Nasdaq TRF data in market data products developed by Nasdaq, Inc. In addition, FINRA stated, the new rule would foster market transparency by permitting the development of market data products by the NYSE by using FINRA/NYSE TRF data for distribution to FINRA/NYSE TRF participants.

FINRA filed the new proposed rule for immediate effectiveness. The proposed rule will be made operative on April 29, 2019.

Commentary / Vivian Maese

Expect to see an increasing amount of focus on rules relating to fees that may be charged for market data.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.