Q300.11: On February 6, 2012, the TRACE reporting requirements for trades in TRACE-Eligible Securities (other than Asset-Backed Securities) in Rule 6730 changed so that the size (volume) of a trade is reported based on the total par value or principal value traded rather than on the number of bonds. To register as a new TAF customer or make changes to existing customer information, use the following forms: To report TAF payments to FINRA, use the following form: Below are links to more information about the TAF, including guidance. For updates and guidance related to COVID-19 / Coronavirus, click here. How is the TAF assessed on transactions effected via such relationships?A200.9: For purposes of the TAF, the sponsoring member is viewed as acting as agent on behalf of the sponsored participants. The TAF  One exception to this rule is when the principal amount of one bond is something other than $1,000 (such as so-called "baby bonds"), the maximum fee should be calculated using the actual number of bonds. A300.8: TRACE and MSRB transaction reporting rules require that a member submit two transaction reports when it acts as agent on behalf of a customer.1 For example, Broker #1 receives an order from a customer to buy 100 bonds. For transactions in ABS, the TAF calculation is based on the "reported value of the sale" of the transaction. For more information, click here. Q200.6: If a non-FINRA member floor broker executes a trade on a FINRA member’s behalf on the floor of a national securities exchange, will the TAF be assessed on the floor broker?A200.6: Non-FINRA member floor brokers acting as agent on a FINRA member’s behalf will not be assessed the Trading Activity Fee. Accordingly, the guidance provided for riskless principal equity transactions does not apply to TRACE and municipal transactions. Under FINRA Rule 5320, trading ahead of customer orders is strictly prohibited. The TAF must therefore be calculated based on the individual components of compressed clearing transactions. The TAF FAQ supersede any previous guidance published in the various Notices. Need Help? Under Florida securities law , FINRA arbitrators are empowered with considerable discretion on the issue of attorneys’ fees. Q300.3: Does the TAF apply to transactions in government securities?A300.3: Debt securities that are issued or guaranteed by an Agency (as defined in Rule 6710(k)) or by a Government-Sponsored Enterprise (as defined in Rule 6710(n)) (collectively, Agency Debt Securities) are TRACE-Eligible and effective July 10, 2017, U.S. Treasury Securities are also TRACE-Eligible Securities. However, the methodology chosen by the member to calculate the TAF assessment must be consistently applied to all average price transactions and must be documented by the member. As such, if the sponsored client is a FINRA member broker-dealer, the TAF would be assessed to the sponsored member as the ultimate seller of the security. Explanation: The Securities and Exchange Commission has approved FINRA Rule 3110(e), which requires member firms to conduct independent background checks on candidates applying for registration with … A100.15: The TAF is assessed on sales by the member firm and by customer accounts carried by the member firm. It stands for the Financial Industry Regulatory Authority. This should include aggregate number of shares for stocks, aggregate number of contracts for options and aggregate number of round turn transactions for security future products. The rate is $0.00000075 times the size of the transaction (calculated as per above), with a maximum charge of $0.75 per trade. Deposit Min. All filings should be submitted using the online form. Some of my clients (institutions and non-FINRA member broker-dealers) participate in dark pools operated by other FINRA member firms. A200.10: A FINRA member will be subject to the TAF for any trade in which the member is viewed as a party to the trade in either a transaction report to a FINRA reporting facility or in a transaction executed on a national securities exchange. Q100.17: How is the TAF assessed when a member, including an ATS or ECN, matches a customer order with a Broker-Dealer order? All the brokers below are available in: 95.5. For purposes of TRACE reporting that means all List or Fixed Offering Price Transactions as defined in Rule 6710 (q) and Takedown Transactions as defined in Rule 6710(r) would not be subject to TAF. It does not apply to primary market transactions. Verify your Securities and Exchange Commission (SEC) Regulatory Transaction Fee obligations for FINRA Trade Reporting Facility ® (TRF ®) operated in partnership with Nasdaq (“FINRA/Nasdaq TRF”) trades by subscribing to daily reports containing internalized trade data reported to the FINRA/Nasdaq TRF. Q200.16: As a clearing firm, I receive transactions from my correspondents bundled together for clearing purposes, often referred to as “compressed” trades. Subsequent account allocations that do not represent reportable TRACE or MSRB transactions are not subject to the TAF. A300.7: When a member, after having received an order from a customer to sell a covered debt security, buys the security as principal from its customer and then sells the security as principal to another customer or to another broker-dealer, the TAF will be assessed on both the member’s purchase of the debt security from the customer as a principal and the member’s sale of the debt security as a principal. 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