[Federal Register: December 15, 2008 (Volume 73, Number 241)]
[Notices]
[Page 76069-76070]
[DOCID:fr15de08-101]

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SECURITIES AND EXCHANGE COMMISSION

Submission for OMB Review; Comment Request

Upon written request, copies available from: U.S. Securities and
Exchange Commission, Office of Investor Education and Advocacy,
Washington, DC 20549-0213.

Extension: Rule 17Ac2-1, SEC File No. 270-95, OMB Control No. 3235-
0084.

    Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') has submitted to the Office of Management
and Budget (``OMB'') a request for approval of extension of the
existing collection of information provided for in the following rule:
Rule 17Ac2-1 (17 CFR 240.17Ac2-1) under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.) (``Exchange Act''). The Commission plans
to submit this existing collection of information to the Office of
Management and Budget (``OMB'') for extension and approval.
    Rule 17Ac-2, pursuant to Section 17A(c) of the Exchange Act,
generally requires transfer agents to register with their Appropriate
Regulatory Agency (``ARA''), whether the Commission, the

Comptroller of the Currency, the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation, or the
Office of Thrift Supervision, and to amend their registrations if the
information becomes inaccurate, misleading, or incomplete.
    Paragraph 1 of Rule 17Ac-2, requires transfer agents to file a Form
TA-1 application for registration with the Commission where the
Commission is their appropriate regulatory agency. Transfer agents must
also file an amended Form TA-1 application for registration if the
existing Form TA-1 becomes inaccurate, misleading, or incomplete. The
Form TA-1s must be filed with the Commission electronically, absent an
exemption, on EDGAR pursuant to Regulation S-T (17 CFR 232).
    The Commission receives on an annual basis approximately 100
applications for registration on Form TA-1 from transfer agents
required to register with the Commission. Included in this figure are
amendments to Form TA-1 as required by Paragraph (c) of Rule 17Ac2-1 to
address information that has become inaccurate, misleading, or
incomplete. Based on past submissions, the staff estimates that the
average number of hours necessary to comply with the requirements of
Rule 17Ac-1 and Form TA-1 is one and one-half hours with a total burden
of 150 hours per year.
    Comments are invited on: (a) Whether the proposed collection of
information is necessary for the proper performance of the functions of
the Commission, including whether the information shall have practical
utility; (b) the accuracy of the Commission's estimates of the burden
of the proposed collection of information; (c) ways to enhance the
quality, utility, and clarity of the information to be collected; and
(d) ways to minimize the burden of the collection of information on
respondents, including the use of automated collection techniques or
other forms of information technology. Consideration will be given to
comments and suggestions submitted within 60 days of this publication.
    Comments should be directed to Lewis A. Walker, Acting Director/
Chief Information Officer, Securities and Exchange Commission, c/o
Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312 or send
an e-mail to<EMAIL_ADDRESS>
    Dated: December 8, 2008.
Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-29508 Filed 12-12-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 103 (Friday, May 27, 2011)]
[Proposed Rules]
[Pages 30896-30898]
[FR Doc No: 2011-13239]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2011-0416; FRL-9312-4]

Revisions to the California State Implementation Plan, South
Coast Air Quality Management District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve revisions to the South Coast Air
Quality Management District (SCAQMD) portion of the California State
Implementation Plan (SIP). These revisions concern oxides of nitrogen
(NOX) and oxides of sulfur (SOX) emissions from
facilities emitting 4 tons or more per year of NOX or
SOX in the year 1990 or any subsequent year under the
SCAQMD's Regional Clean Air Incentives Market (RECLAIM) program. We are
approving a local rule that regulates these emission sources under the
Clean Air Act as amended in 1990 (CAA or the Act). We are taking
comments on this proposal and plan to follow with a final action.

DATES: Any comments must arrive by June 27, 2011.

ADDRESSES: Submit comments, identified by docket number EPA-R09-OAR-
2011-0416, by one of the following methods:
    1. Federal eRulemaking Portal: http://www.regulations.gov. Follow
the on-line instructions.
    2. E-mail<EMAIL_ADDRESS>    3. Mail or deliver: Andrew Steckel (Air-4), U.S. Environmental
Protection Agency Region IX, 75 Hawthorne Street, San Francisco, CA
94105-3901.
    Instructions: All comments will be included in the public docket
without change and may be made available online at http://www.regulations.gov, including any personal information provided,
unless the comment includes Confidential Business Information (CBI) or
other information whose disclosure is restricted by statute.
Information that you consider CBI or otherwise protected should be
clearly identified as such and should not be submitted through http://www.regulations.gov or e-mail. http://www.regulations.gov is an
``anonymous access'' system, and EPA will not know your identity or
contact information unless you provide it in the body of your comment.
If you send e-mail directly to EPA, your e-mail address will be
automatically captured and included as part of the public comment. If
EPA cannot read your comment due to technical difficulties and cannot
contact you for clarification, EPA may not be able to consider your
comment.
    Docket: Generally, documents in the docket for this action are
available electronically at http://www.regulations.gov and in hard copy
at EPA Region IX, 75 Hawthorne Street, San Francisco, California. While
all documents in the docket are listed at http://www.regulations.gov,
some information may be publicly available only at the hard copy
location (e.g., copyrighted material, large maps), and some may not be
publicly available in either location (e.g., CBI). To inspect the hard
copy materials, please schedule an appointment during normal business
hours with the contact listed in the FOR FURTHER INFORMATION CONTACT
section.

FOR FURTHER INFORMATION CONTACT: Lily Wong, EPA Region IX, (415) 947-
4114<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Throughout this document, ``we,'' ``us'' and
``our'' refer to EPA.

Table of Contents

I. The State's Submittal
    A. What rule did the State submit?
    B. Are there other versions of this rule?
    C. What is the purpose of the submitted rule revisions?
II. EPA's Evaluation and Action
    A. How is EPA evaluating the rule?
    B. Does the rule meet the evaluation criteria?
    C. Public Comment and Final Action
III. Statutory and Executive Order Reviews

I. The State's Submittal

A. What rule did the State submit?

    Table 1 lists the rule addressed by this proposal with the date
that it was adopted by the local air agency and submitted by the
California Air Resources Board (CARB).

                                             Table 1--Submitted Rule
----------------------------------------------------------------------------------------------------------------
             Local agency                 Rule No.            Rule title            Adopted         Submitted
----------------------------------------------------------------------------------------------------------------
SCAQMD...............................            2002  Allocations for Oxides         11/05/10         04/05/11
                                                        of Nitrogen (NOX) and
                                                        Oxides of Sulfur (SOX).
----------------------------------------------------------------------------------------------------------------

    On May 6, 2011, EPA determined that the submittal for SCAQMD Rule
2002 met the completeness criteria in 40 CFR Part 51 Appendix V, which
must be met before formal EPA review.

B. Are there other versions of this rule?

    Table 2 lists the previous version of this rule approved into the
SIP.

                                  Table 2--Current SIP Approved Version of Rule
----------------------------------------------------------------------------------------------------------------
           Rule No.                 Rule title         Adopted         Submitted         Approved FR citation
----------------------------------------------------------------------------------------------------------------
2002..........................  Allocations for        01/07/2005       12/21/2005       08/29/2006, 71 FR 51120
                                 Oxides of
                                 Nitrogen (NOX)
                                 and Oxides of
                                 Sulfur (SOX).
----------------------------------------------------------------------------------------------------------------

C. What is the purpose of the submitted rule revisions?

    NOX helps produce ground-level ozone, smog and
particulate matter, which harm human health and the environment.
Section 110(a) of the CAA requires States to submit regulations that
control NOX emissions.
    PM contributes to effects that are harmful to human health and the
environment, including premature mortality, aggravation of respiratory
and cardiovascular disease, decreased lung function, visibility
impairment, and damage to vegetation and ecosystems. PM2.5
can be emitted directly into the atmosphere as a solid or liquid
particle (primary or direct PM2.5) or can be formed in the
atmosphere as a result of various chemical reactions from precursor
emissions of NOX, sulfur dioxide (SO2), volatile
organic compounds and ammonia (secondary PM2.5).
PM2.5 in the South Coast Air Basin is overwhelmingly formed
as a secondary pollutant. (South Coast 2007 Air Quality Management
Plan, page ES-9). Therefore, the South Coast 2007 AQMP relies on
reducing precursors to PM2.5 and some directly-emitted
PM2.5 rather than fugitive dust (PM10).
    The RECLAIM program was initially adopted by SCAQMD in October
1993. The program established for many of the largest NOX
and SOX facilities in the South Coast Air Basin a regional
NOX and a regional SOX emissions cap and trade
program, with the regional emissions caps declining over time until
2003. The program was designed to provide incentives for sources to
reduce emissions and advance pollution control technologies by giving
sources added flexibility in meeting emission reduction requirements. A
NOX or SOX RECLAIM Trading Credit (RTC) is a
limited authorization to emit one pound of NOX or
SOX during a specified one year period. A RECLAIM source's
emissions may not exceed its RTC holding in any compliance year. A
RECLAIM source may comply with this requirement by installing control
equipment, modifying their activities, or purchasing RTCs from other
facilities.
    The primary purpose of the amendments to Rule 2002 was to achieve
SOX emission reductions by lowering the SOX
emissions cap in the SOX RECLAIM program. This is
accomplished by the calculation procedures in the rule for lowering a
source's SOX RTC holdings. EPA's technical support document
(TSD) has more information about this rule.
    Rule 2002 submitted to EPA also includes certain amendments to the
rule that occurred in 2005 that were not previously approved by EPA.
These amendments lower a source's NOX RTC holdings and
result in NOX emission reductions. EPA's TSD has more
information about these provisions.

II. EPA's Evaluation and Action

A. How is EPA evaluating the rule?

    Generally, SIP rules must be enforceable (see section 110(a) of the
Act), must require Reasonably Available Control Technology (RACT) for
each category of sources covered by a Control Techniques Guidelines
(CTG) document as well as each major source in nonattainment areas (see
sections 182(a)(2) and 182(f)), and must not relax existing
requirements (see sections 110(l) and 193). The SCAQMD regulates an
ozone nonattainment area (see 40 CFR part 81), so Rule 2002 must
fulfill RACT.
    Guidance and policy documents that we use to evaluate
enforceability and RACT requirements consistently include the
following:
    1. ``State Implementation Plans; Nitrogen Oxides Supplement to the
General Preamble; Clean Air Act Amendments of 1990 Implementation of
Title I; Proposed Rule,'' (the NOX Supplement), 57 FR 55620,
November 25, 1992.
    2. ``Issues Relating to VOC Regulation Cutpoints, Deficiencies, and
Deviations,'' EPA, May 25, 1988 (the Bluebook).
    3. ``Guidance Document for Correcting Common VOC & Other Rule
Deficiencies,'' EPA Region 9, August 21, 2001 (the Little Bluebook).

B. Does the rule meet the evaluation criteria?

    We believe this rule is consistent with the relevant policy and
guidance regarding enforceability, RACT, and SIP relaxations. The TSD
has more information on our evaluation.

C. Public Comment and Final Action

    Because EPA believes the submitted rule fulfills all relevant
requirements, we are proposing to fully approve it as described in
section 110(k)(3) of the Act. We will accept comments from the public
on this proposal for the next 30 days. Unless we receive convincing new
information during the comment period, we intend to publish a final
approval action that will incorporate this rule into the federally
enforceable SIP.

III. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a
SIP submission that complies with the provisions of the Act and
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a).
Thus, in reviewing SIP submissions, EPA's role is to approve State
choices, provided that they meet the criteria of the Clean Air Act.
Accordingly, this action merely approves State law as meeting Federal
requirements and does not impose additional requirements beyond those
imposed by State law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the Clean Air Act; and
     Does not provide EPA with the discretionary authority to
address disproportionate human health or environmental effects with
practical, appropriate, and legally permissible methods under Executive
Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because the SIP is not approved to apply in Indian country located in
the State, and EPA notes that it will not impose substantial direct
costs on tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental
relations, Nitrogen dioxide, Ozone, Reporting and recordkeeping
requirements.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: May 19, 2011.
Jared Blumenfeld,
Regional Administrator, Region IX.
[FR Doc. 2011-13239 Filed 5-26-11; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 87, Number 107 (Friday, June 3, 2022)]
[Notices]
[Pages 33844-33851]
[FR Doc No: 2022-11878]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95003; File No. SR-FINRA-2022-013]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a Proposed Rule Change To Amend
FINRA Rule 6730 To Enhance TRACE Reporting Obligations for U.S.
Treasury Securities

May 27, 2022.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 23, 2022, the Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by FINRA. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    FINRA is proposing to amend FINRA Rule 6730 to: (i) Require members
to report electronically executed transactions in U.S. Treasury
Securities to FINRA's Trade Reporting and Compliance Engine (``TRACE'')
in the finest increment captured by the system used to execute the
transaction, subject to an exception for members with limited trading
volume in U.S. Treasury Securities; and (ii) reduce the trade reporting
timeframe for transactions in U.S. Treasury Securities to generally
require reporting to TRACE as soon as practicable but no later than 60
minutes.
    The text of the proposed rule change is available on FINRA's
website at http://www.finra.org, at the principal office of FINRA and
at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On July 10, 2017,\3\ FINRA members began reporting information on
transactions in U.S. Treasury

Securities \4\ to TRACE.\5\ Information reported to TRACE regarding
transactions in U.S. Treasury Securities is used for regulatory and
other official sector purposes and is not disseminated publicly.\6\
Among other regulatory uses, FINRA makes the data available to the
official sector to assist them in the monitoring and analysis of the
U.S. Treasury Security markets.\7\
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    \3\ See Regulatory Notice 16-39 (October 2016); see also
Securities Exchange Act Release No. 79116 (October 18, 2016), 81 FR
73167 (October 24, 2016) (Order Granting Accelerated Approval of
File No. SR-FINRA-2016-027).
    \4\ Under Rule 6710(p), a ``U.S. Treasury Security'' means a
security, other than a savings bond, issued by the U.S. Department
of the Treasury (the ``Treasury Department'') to fund the operations
of the federal government or to retire such outstanding securities.
The term ``U.S. Treasury Security'' also includes separate principal
and interest components of a U.S. Treasury Security that has been
separated pursuant to the Separate Trading of Registered Interest
and Principal of Securities (STRIPS) program operated by the
Treasury Department.
    \5\ TRACE is the FINRA-developed system that facilitates the
mandatory reporting of over-the-counter transactions in eligible
fixed income securities. See generally Rule 6700 Series.
    \6\ On March 10, 2020, FINRA began posting on its website
weekly, aggregate data on the trading volume of U.S. Treasury
Securities reported to TRACE. See FINRA Press Release, FINRA
Launches New Data on Treasury Securities Trading Volume, https://www.finra.org/media-center/newsreleases/2020/finra-launches-new-data-treasury-securities-trading-volume; see also Securities
Exchange Act Release No. 87837 (December 20, 2019), 84 FR 71986
(December 30, 2019) (Order Approving File No. SR-FINRA-2019-028).
Information on individual transactions in U.S. Treasury Securities
is not published or disseminated.
    \7\ The Treasury Department, the Board of Governors of the
Federal Reserve System (the ``Federal Reserve''), the Federal
Reserve Bank of New York, the SEC and the U.S. Commodity Futures
Trading Commission comprise the Inter-Agency Working Group for
Treasury Market Surveillance (IAWG or ``official sector'').
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    Since members began reporting U.S. Treasury Security transaction
information to TRACE,\8\ FINRA has continued to study the data and, in
consultation with the Treasury Department, consider potential ways to
enhance the quality and availability of the data for FINRA and the
official sector. FINRA is now proposing two changes to its TRACE
reporting rules to enhance the regulatory audit trail and require
members to report transactions in U.S. Treasury Securities to FINRA in
a more timely manner. The first proposed change would require members
to report electronically executed transactions in U.S. Treasury
Securities to TRACE in the finest increment captured by the system that
executed the transaction, as discussed below. FINRA is proposing to
provide an exception from the amended execution timestamp provision for
members with limited trading volume in U.S. Treasury Securities. The
second proposed change would reduce the reporting timeframe for
transactions in U.S Treasury Securities, as discussed further below.
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    \8\ Currently, the TRACE reporting requirements apply only to
FINRA members. However, FINRA notes that the Federal Reserve has
approved a rule change that will require certain non-FINRA member
banks to begin reporting information on transactions in specified
fixed income securities, including U.S. Treasury Securities, to
TRACE. See Agency Information Collection Activities: Announcement of
Board Approval Under Delegated Authority and Submission to OMB, 86
FR 59716 (October 28, 2021) (Federal Reserve approval to implement
the Treasury Securities and Agency Debt and Mortgage-Backed
Securities Reporting Requirements (FR 2956; OMB No. 7100-NEW)).
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Execution Timestamps
    Existing Supplementary Material .04 to Rule 6730 provides that,
when reporting transactions in U.S. Treasury Securities executed
electronically to TRACE, members must report the Time of Execution \9\
pursuant to paragraph (c)(8) of Rule 6730 to the finest increment of
time captured by the member's system (e.g., millisecond, microsecond),
but at a minimum, in increments of seconds.\10\ The ``member's system''
referenced in the existing rule refers to the system that is used to
report the transaction to TRACE (i.e., the member's ``reporting
system''). Under the existing rule and related guidance, if a member
uses multiple systems to facilitate trade reporting and those systems
differ in granularity, then the member may use the finest increment
that is common across all systems.\11\ As a result, currently members
may use a reporting system to report a trade to TRACE in an increment
of time that is less precise than that captured by the system that is
used to execute the transaction (i.e., the ``execution system'').\12\
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    \9\ Under Rule 6710(d), the ``Time of Execution'' generally
means the time when the parties to a transaction agree to all of the
terms of the transaction that are sufficient to calculate the dollar
price of the trade.
    \10\ Existing Supplementary Material .04 provides that a member
must report ``at a minimum, in increment of seconds.'' As discussed
below, to avoid confusion, the proposed amendments update this
language to clarify that members must report trades in an increment
of ``no longer than a second'' and no shorter than a microsecond.
TRACE currently cannot accept a Time of Execution in an increment
that is finer than a microsecond. The proposed rule change would
also make a non-substantive edit to Supplementary Material .04 to
capitalize the defined term ``Time of Execution.''
    \11\ Specifically, TRACE Treasury FAQ #3.5.8 provides as
follows: Question: Our firm will use two separate systems to
facilitate trade reporting of U.S. Treasury Securities for different
business lines. One system (``System A'') has the capability to
capture the time of execution to the millisecond; however, the
second system (``System B'') will only capture the time of execution
to the second. Will our firm be required to update System B to
capture the time of execution to the millisecond? Answer: No. The
rule requires members to report the time of electronic executions to
the finest increment of time captured in the member's system (e.g.,
millisecond, microsecond), but at a minimum, in increments of
seconds. Since the firm would be reporting the time of execution to
the finest increment captured by each system, the firm would not
need to make any updates to System B to comply with a finer time
increment.
    \12\ For purposes of Supplementary Material .04, FINRA would
consider the relevant execution system to be the system used to
execute the particular U.S. Treasury Security transaction being
reported to TRACE, regardless of whether the member is using its own
internal systems for execution or if the transaction is executed
through an external system. For example, if a member executes a
transaction in a U.S. Treasury Security through an alternative
trading system (``ATS'') or other electronic trading platform, the
member would be required to report in the finest increment of time
captured by such ATS or electronic trading platform (but no finer
than a microsecond, in line with TRACE system parameters).
---------------------------------------------------------------------------

    To improve the granularity and consistency of transaction
information for U.S. Treasury Securities, FINRA is proposing to amend
Supplementary Material .04 to Rule 6730 to instead provide that, when
reporting transactions in U.S. Treasury Securities executed
electronically, members must report the Time of Execution pursuant to
paragraph (c)(8) of Rule 6730 to the finest increment of time captured
by the execution system (e.g., millisecond, microsecond), but reporting
must be in an increment of (i) no longer than a second and (ii) no
shorter than a microsecond. Amended Supplementary Material .04 would
not require members to update execution systems for U.S. Treasury
Securities--instead members must update their reporting systems, if
necessary, to ensure that their TRACE reports reflect the finest
increment of time captured by the execution system (but not finer than
a microsecond).\13\ Therefore, a member may be required to update its
reporting system for U.S. Treasury Securities if such reporting system
does not currently report to TRACE to the same level of granularity as
the execution system.\14\
---------------------------------------------------------------------------

    \13\ The TRACE system does not accept trade reports in
increments finer than a microsecond. Where a firm captures time in a
finer increment, the firm must truncate the time when reporting the
transaction to TRACE. Specifically, TRACE FAQ #3.5.37 provides as
follows: Question: Is rounding permitted when reporting the Time of
Execution of a U.S. Treasury Security transaction to TRACE? Answer:
No. Members must accurately report a transaction's Time of Execution
and are not permitted to round when reporting to TRACE. The TRACE
system can accommodate reporting up to the microsecond and, where
the firm captures time in an increment finer than microseconds, the
firm must truncate when reporting to TRACE.
    \14\ See supra note 12. In connection with the proposed rule
change, FINRA would also amend its existing TRACE FAQs to clarify
that a member must report using the finest increment of time
captured by the execution system, and therefore may need to update
other systems to enable trade reporting using the execution system's
level of timestamp granularity.
---------------------------------------------------------------------------

    For example, if the execution system captures time in milliseconds
but the reporting system for U.S. Treasury Security transactions
reports the Time

of Execution in seconds, the member would be required to update its
reporting system to report the Time of Execution in milliseconds.
Similarly, if a member's reporting system reports transactions in U.S.
Treasury Securities in milliseconds but the member executes trades on
an ATS that captures the execution times in microseconds, the member
would be required to update its reporting system to report the Time of
Execution in microseconds. FINRA believes the proposed change would
result in FINRA and the official sector receiving more precise
information with respect to the Time of Execution of transactions in
U.S. Treasury Securities, which would assist with trade matching and
sequencing for U.S. Treasury Securities.
    FINRA is, however, proposing to add new Supplementary Material .07
to Rule 6730 to provide a limited exception for members with limited
trading volume in U.S. Treasury Securities from the proposed
requirement to report electronically executed transactions in U.S.
Treasury Securities to the finest increment of time captured by the
execution system.\15\ The proposed Supplementary Material would define
a ``member with limited trading volume in U.S. Treasury Securities'' as
a member that executed transactions in U.S. Treasury Securities of $10
million or less in average daily par value, computed by aggregating buy
and sell transactions, during the preceding calendar year. Where a
member's activity is below the proposed criteria during the preceding
calendar year, such member would not be required to report transactions
in U.S. Treasury Securities in the finest increment captured by the
execution system and would be permitted to continue to report the Time
of Execution for transactions in U.S. Treasury Securities executed
electronically as it does today for the duration of the following
calendar year.
---------------------------------------------------------------------------

    \15\ The proposed rule change would also make non-substantive,
conforming edits to the Supplementary Material to Rule 6730.
Specifically, existing Supplementary Material .06 to Rule 6730
provided a temporary exception for aggregate transaction reporting
of U.S. Treasury Securities executed in ATS trading sessions. By its
terms, that temporary exception expired on April 12, 2019.
Therefore, FINRA is proposing to delete the temporary exception
under existing Supplementary Material .06, renumber existing
Supplementary Material .07 (ATS Identification of Non-FINRA Member
Counterparties for Transactions in U.S. Treasury Securities) as
Supplementary Material .06 and add the new exception for members
with limited trading volume in U.S. Treasury Securities as new
Supplementary Material .07.
---------------------------------------------------------------------------

    Under the proposed rule change, a member that relies on the
exception for limited trading volume would be required to confirm on an
annual basis that it continues to meet the criteria for the exception
based on its trading activity during the preceding calendar year. Where
a member no longer meets the criteria for the exception based on its
trading activity during a given preceding calendar year, the member may
no longer rely on the exception beginning 90 days after the end of such
calendar year, which FINRA believes would provide such members with a
sufficient amount of time to make any systems changes that may be
needed to comply with the amended timestamp requirement.\16\
---------------------------------------------------------------------------

    \16\ Under the proposed rule change, once a member's activity
falls outside of the scope of the proposed criteria based on its
trading activity during a given preceding calendar year, such member
generally may no longer rely on the exception beginning 90 days
after the end of such calendar year, irrespective of whether it
again meets the criteria in a subsequent calendar year. However, a
member may consult with FINRA staff regarding the availability of
the exception where the member has changed business lines or
undergone a corporate restructuring that significantly impacts its
level of activity in U.S. Treasury Securities.
---------------------------------------------------------------------------

    As discussed further below in the Economic Impact Assessment, FINRA
believes that providing an exception from the amended execution
timestamp requirement is appropriate as it would apply the enhanced
obligations under the rule and associated burdens to the members that
engage in substantial trading activity in U.S. Treasury Securities
(based on the $10 million average daily par value traded threshold).
Reporting Timeframe Reduction
    Under existing Rule 6730(a)(4)(A), transactions in U.S. Treasury
Securities executed on a business day at or after 12:00:00 a.m. Eastern
Time through 5:00:00 p.m. Eastern Time must be reported the same day
during TRACE System Hours, i.e., 8:00:00 a.m. Eastern Time through
6:29:59 p.m. Eastern Time.\17\ A transaction executed on a business day
after 5:00:00 p.m. Eastern Time but before the TRACE system closes can
be reported the same day before the TRACE system closes, but must be
reported no later than the next business day (T+1) during TRACE System
Hours, i.e., 8:00:00 a.m. Eastern Time through 6:29:59 p.m. Eastern
Time, and, if reported on T+1, designated ``as/of'' and include the
date of execution. Finally, a transaction executed on a business day at
or after 6:30:00 p.m. Eastern Time through 11:59:59 p.m. Eastern Time
(or a Saturday, a Sunday, a federal or religious holiday or other day
on which the TRACE system is not open at any time during that day) must
be reported the next business day (T+1) during TRACE System Hours,
i.e., 8:00:00 a.m. Eastern Time through 6:29:59 p.m. Eastern Time,
designated ``as/of,'' and include the date of execution.
---------------------------------------------------------------------------

    \17\ Under Rule 6710(t), ``TRACE System Hours'' means the hours
the TRACE system is open, which are 8:00:00 a.m. Eastern Time
through 6:29:59 p.m. Eastern Time on a business day, unless
otherwise announced by FINRA.
---------------------------------------------------------------------------

    To provide more timely information about transactions in U.S.
Treasury Securities, FINRA is proposing to amend Rule 6730(a)(4) to
reduce the trade reporting timeframe as follows.\18\ Amended Rule
6730(a)(4) would provide that transactions in U.S. Treasury Securities
must be reported as soon as practicable, but no later than the
following time periods.\19\ Amended Rule 6730(a)(4)(A) would require
that a transaction executed on a business day at or after 12:00:00 a.m.
Eastern Time through 7:59:59 a.m. Eastern Time must be reported the
same day no later than 60 minutes after the TRACE system opens. A
transaction executed on a business day at or after the time the TRACE
system opens at 8:00:00 a.m. Eastern Time through when the TRACE system
closes at 6:29:59 p.m. Eastern Time (standard TRACE System Hours) must
be reported within 60 minutes of the Time of Execution, except that a
transaction executed on a business day less than 60 minutes before
6:30:00 p.m. Eastern Time can be reported the same day before the TRACE
system closes, but must be reported no later than 60 minutes after the
TRACE system opens the next business day (T+1), and if reported on T+1,
designated ``as/of'' and

include the date of execution. Finally, a transaction executed on a
business day at or after 6:30:00 p.m. Eastern Time through 11:59:59
p.m. Eastern Time, or a Saturday, a Sunday, a federal or religious
holiday or other day on which the TRACE system is not open at any time
during that day (determined using Eastern Time) must be reported the
next business day (T+1) no later than 60 minutes after the TRACE system
opens, designated ``as/of,'' and include the date of execution.
---------------------------------------------------------------------------

    \18\ FINRA is not proposing to provide an exception for members
with limited trading activity in U.S. Treasury Securities from the
proposed reduced reporting timeframe requirement.
    \19\ In connection with the proposed changes to Rule 6730(a)(4)
discussed above, the proposed rule change would also make conforming
changes to Supplementary Material .03 to Rule 6730, which sets forth
standards for firms reporting transactions ``as soon as
practicable'' after the Time of Execution in accordance with Rule
6730(a). Existing Rule 6730.03 provides that ``[e]ach member with a
trade reporting obligation pursuant to paragraph (a) above for a
TRACE-Eligible Security that is subject to dissemination must adopt
policies and procedures reasonably designed to comply with the
requirement that transactions in TRACE-Eligible Securities be
reported `as soon as practicable' by implementing systems that
commence the trade reporting process at the Time of Execution
without delay.'' Under the proposed rule change, the ``as soon as
practicable'' standard would also apply to transactions in U.S.
Treasury Securities, which are not subject to dissemination.
Therefore, FINRA is proposing to update the first sentence of Rule
6730.03 to provide that ``[e]ach member with an obligation to report
a transaction in a TRACE-Eligible Security `as soon as practicable'
pursuant to paragraph (a) of this Rule must adopt policies and
procedures reasonably designed to comply with this requirement by
implementing systems that commence the trade reporting process at
the Time of Execution without delay.''
---------------------------------------------------------------------------

    FINRA believes the proposal to require that members report
transactions in U.S. Treasury Securities to TRACE as soon as
practicable, but no later than within 60 minutes of the Time of
Execution (or within 60 minutes after the TRACE system opens for trades
executed during specified periods, as described above) is a beneficial
next step towards providing FINRA and the official sector with more
timely information about activity in the U.S. Treasury Security markets
than the current reporting timeframe, including more timely data about
intraday pricing and liquidity. As discussed further in the Economic
Impact Assessment, FINRA also notes that members already report over 90
percent of transactions in U.S. Treasury Securities within 60 minutes
of the Time of Execution. FINRA will continue to consider whether
further reducing the reporting timeframe for U.S. Treasury Securities
may be beneficial.
    If the Commission approves the proposed rule change, FINRA will
announce the effective date of the proposed rule change in a Regulatory
Notice. The effective date will be no later than 365 days following
publication of the Regulatory Notice announcing Commission approval of
the proposed rule change.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\20\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

    FINRA believes that the proposed rule change to align the
granularity of the Time of Execution provided in TRACE reports with the
granularity of timestamps in the system used to execute transactions in
U.S. Treasury Securities will enhance the regulatory audit trail for
U.S. Treasury Securities available to FINRA and the official sector by
facilitating more efficient matching and sequencing of transactions in
the audit trail data. FINRA also believes that providing an exception
from the amended execution timestamp requirement for members with
limited trading volume in U.S. Treasury Securities will reduce burdens
for members with limited activity while continuing to ensure that FINRA
and the official sector receives valuable audit trail information for
U.S. Treasury Security trades. FINRA further believes that requiring
members to report transactions in U.S. Treasury Securities to TRACE in
a more timely manner will improve the availability to regulators of
information regarding transactions in the U.S. Treasury Security
markets, including more timely data about intraday pricing and
liquidity.

B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
Economic Impact Assessment
    FINRA has undertaken an economic impact assessment, as set forth
below, to further analyze the regulatory need for the proposed rule
change, its potential economic impacts, including anticipated costs,
benefits, and distributional and competitive effects, relative to the
current baseline, and the alternatives FINRA considered in assessing
how best to meet its regulatory objective.
Regulatory Need
    Under the existing rule, members may report a trade to TRACE in an
increment of time that is less precise than that captured by the
execution system, which makes it difficult to match interdealer trades
when two sides report at different time granularity because coarse
granularity in timestamps makes sequencing trades less precise. To
address this, the proposed amendment requires that, when reporting
transactions in U.S. Treasury Securities executed electronically,
members must report the Time of Execution to the finest increment of
time captured by the execution system, but must report in an increment
of time that is no longer than a second and no shorter than a
microsecond.
    Under the existing rule, a transaction executed on a business day
at or after 12:00:00 a.m. Eastern Time through 5:00:00 p.m. Eastern
Time must be reported the same day during TRACE System Hours, while a
transaction executed after 5:00:00 p.m. Eastern Time but before the
TRACE system closes must be reported no later than the next business
day (T+1) during TRACE System Hours. A transaction executed on a
business day at or after 6:30:00 p.m. Eastern Time through 11:59:59
p.m. Eastern time or on a non-business day must be reported the next
business day (T+1) during TRACE System Hours. To improve the timeliness
of the information reported to TRACE, the proposed amendment will
require transactions in U.S. Treasury Securities to be reported as soon
as practicable, but no later than 60 minutes from the Time of Execution
(or within 60 minutes after the TRACE system opens for trades executed
during specified periods), which would provide more timely information
to regulators.
Economic Baseline
    The economic baseline of the proposed rule change is the existing
TRACE U.S. Treasury Security reporting requirements, and member firms
trading activities in these securities. FINRA has analyzed TRACE U.S.
Treasury Security transaction reports during the sample period of July
2020 to June 2021 by 729 members and 21 ATSs, \21\ during which there
were approximately 336,612 transaction reports on average reported to
TRACE per day.\22\ ATSs collectively accounted for 58.8 percent of
these reports. Among the top 10 TRACE reporters for U.S. Treasury
Securities, five are ATSs and five are non-ATS FINRA members. The top
10 reporters collectively represented 71.8 percent of all TRACE U.S.
Treasury Security reports, and the five ATSs accounted for 57.8 percent
of the total. On average, there were 667 FINRA members that reported
fewer than 100 transactions per day for the days on which they reported
transactions in U.S. Treasury Securities.
---------------------------------------------------------------------------

    \21\ In selecting a sample period, FINRA also analyzed trade
reports during the 2020 calendar year, which includes the March 2020
stress period, and found no significant difference in the statistics
over the 2020 calendar year as compared to the statistics over the
July 2020 to June 2021 period.
    \22\ The analysis considers all transaction reports for the
purpose of the rule, and thus differs from the weekly aggregated
statistics published by FINRA, which adjusts for multiple reporting
of trades where a trade involves an ATS or both sides are FINRA
members. See supra note 6.
---------------------------------------------------------------------------

    During the sample period, 253 unique MPIDs reported transactions in
U.S. Treasury Securities executed on or through an ATS to TRACE.\23\ Of
the 253 MPIDs, 173 MPIDs reported transactions in seconds and 80 MPIDs
reported

transactions in milliseconds or finer. Fifty-nine of the 173 reporters
which reported in seconds had no more than $10 million in average daily
par value traded. Thirty-four of the 80 reporters which reported in
milliseconds or finer had no more than $10 million in average daily par
value traded. There were approximately 70.2 million ATS transactions
reported in the sample period across all 253 MPIDs. Most of these
transactions (72.7 percent) were reported in milliseconds or finer.
---------------------------------------------------------------------------

    \23\ FINRA has analyzed the number of transactions executed on
or through an ATS because these are a readily identifiable subset of
all electronically executed transactions.
---------------------------------------------------------------------------

    Furthermore, for the sample period reviewed, FINRA analysis found
that for transactions executed on business days between 8:00 a.m. and
5:00 p.m., members reported 96.5 percent of transactions within 60
minutes of the Time of Execution. Of the 749 MPIDs (either member firm
or ATS) that reported transactions, 281 MPIDs always reported
transactions within 60 minutes and 12 MPIDs always reported
transactions more than 60 minutes after the execution. The remaining
456 MPIDs reported transactions both within 60 minutes and after 60
minutes of execution, of which 96.5 percent were reported within 60
minutes of execution. FINRA also observed that of the transactions that
were executed from 5:00 p.m. through 7:59:59 a.m. the next business day
or on non-business days by 318 MPIDs, 95.5 percent of these
transactions were reported within 60 minutes after the TRACE system
opened. Of the 318 MPIDs, 109 always reported within 60 minutes after
the TRACE system opened. Of the 318 MPIDs, 193 reported both within and
after 60 minutes after the TRACE system opened.
Economic Impacts
    As discussed above, FINRA is proposing two enhancements to improve
the quality and timeliness of the information reported to TRACE for
transactions in U.S. Treasury Securities. The enhancements will result
in benefits, including facilitating market oversight and providing
FINRA and the official sector with valuable insight into U.S. Treasury
Security transactions, thereby benefiting the markets and market
participants, and strengthening investor protection.
    FINRA recognizes that the proposed enhancements may result in costs
for members that trade U.S. Treasury Securities where members must
implement changes to their processes and systems for reporting U.S.
Treasury Securities transactions to TRACE.
    The proposed rule change may affect competition between member
firms with reporting obligations and non-members engaging in U.S.
Treasury Security trades. Such competitive impact could result from the
extent to which members pass costs resulting from the reporting
requirement to customers, either fully or partially. Customers may thus
choose to trade using non-members who do not have TRACE reporting
obligations. However, such substitutability would depend on, among
other things, whether sufficient liquidity exists with these non-
reporting firms, and regulatory or practical limitations on where
customers and institutions may trade. In addition, search and other
costs may further impose a burden on customers that may limit such
potential substitution. Substitution may also be limited where other
regulators impose TRACE reporting requirements that align with the
proposed rule change, for example when the Federal Reserve implements
TRACE reporting for U.S. Treasury Securities for banks.\24\ The
proposed rule change may also affect competition among reporting firms,
where firms reporting only a limited number of trades may face the same
costs of upgrading their systems and therefore find their limited
trading in U.S. Treasury Securities less viable. The impact on such
firms is expected to be mitigated as a result of the proposed exception
for eligible members in connection with the proposed timestamp
granularity provision, as described above.
---------------------------------------------------------------------------

    \24\ See supra note 8.
---------------------------------------------------------------------------

Execution Timestamps
    As discussed above, FINRA is proposing to require members to report
electronically executed transactions in U.S. Treasury Securities in the
finest increment of time as that captured by the execution system, but
must report in an increment of time that is no longer than a second and
no shorter than a microsecond. Finer time granularity in the audit
trail will assist with trade matching and sequencing by allowing
transactions to be matched more accurately and sequenced with more
granularity. This facilitates market oversight by providing FINRA and
the official sector with more information on U.S. Treasury Security
transactions. It will result in costs for members that need to
implement changes to their processes and systems.
    FINRA is proposing an exception from the timestamp granularity
requirement for members that engage in limited activity in U.S.
Treasury Securities--specifically, members that executed transactions
in U.S. Treasury Securities of no more than $10 million in average
daily par value traded (computed by aggregating buy and sell
transactions over the prior calendar year). The $10 million threshold
would provide relief for firms with limited activity (and for which the
technological changes required may be more significant compared to
their level of activity in this space) while continuing to ensure that
FINRA receives valuable audit trail information for U.S. Treasury
Security trades. Based on 2020 data which is the full calendar year
members' activity will be measured, the proposed threshold would
provide relief to 485 firms that, in the aggregate, accounted for 0.11%
of the total par value traded.
Reporting Timeframe Reduction
    As discussed above, FINRA is proposing to reduce the timeframe for
reporting transactions in U.S. Treasury Securities to TRACE to
generally require reporting as soon as practicable but no later than
within 60 minutes of the Time of Execution (or within 60 minutes after
the TRACE system opens for trades executed during specified periods).
This facilitates market oversight by providing FINRA and the official
sector with more timely information on U.S. Treasury Security
transactions. It will result in costs for members that need to
implement changes to their processes and systems. As discussed in the
baseline, members reported approximately 96 percent of transactions
within 60 minutes of the Time of Execution.
    Some members who trade in U.S. Treasury Securities also trade in
other types of TRACE-Eligible Securities that already require reporting
in a shorter timeframe. For example, transactions in corporate bonds
and Agency Debt Securities \25\ generally are required to be reported
to FINRA as soon as practicable, but no later than within 15 minutes of
the Time of Execution. In the sample period, of the 750 MPIDs that
reported transactions in U.S. Treasury Securities, 691 MPIDs also
reported transactions in corporate bonds and Agency Debt Securities.
While these transactions may occur on separate

trading desks, to the extent that members are able to leverage existing
technology within the firm, the costs associated with the proposed
reporting timeframe changes for U.S. Treasury Securities could
potentially be reduced.
---------------------------------------------------------------------------

    \25\ Under Rule 6710(l), an ``Agency Debt Security'' means a
debt security (i) issued or guaranteed by an Agency; (ii) issued or
guaranteed by a Government-Sponsored Enterprise; or (iii) issued by
a trust or other entity that was established or sponsored by a
Government-Sponsored Enterprise for the purpose of issuing debt
securities, where such enterprise provides collateral to the trust
or other entity or retains a material net economic interest in the
reference tranches associated with the securities issued by the
trust or other entity. The term excludes a U.S. Treasury Security
and a Securitized Product, where an Agency or a Government-Sponsored
Enterprise is the Securitizer (or similar person), or the guarantor
of the Securitized Product.
---------------------------------------------------------------------------

Alternatives Considered
    FINRA considered several alternatives to the $10 million threshold
for the exception from the timestamp granularity requirement. First,
FINRA considered basing the relief on the number of trades reported
rather than the par value traded. Based on its analysis, FINRA believes
that average daily par value traded is a more appropriate measurement;
specifically, some firms with fewer than 100 trades on average per day
still had significant average trading volume. FINRA also considered
basing the relief on different levels of trading activity, up to an
average daily par value traded of $100 million (which is the threshold
used by the Federal Reserve for bank reporting).\26\ FINRA determined
that a $100 million threshold would result in the loss of valuable
audit trail information for members that trade significant U.S.
Treasury Security volumes. FINRA also analyzed firms at or below a $50
million threshold, a $20 million threshold, and $15 million threshold
and determined in each case that these thresholds were too high for
purposes of the proposed exception and would result in the loss of
valuable audit trail information. On balance, FINRA believes that the
firms within scope of the proposed execution timestamp enhancement,
using the proposed $10 million threshold, are active participants in
the U.S. Treasury Security space and should be required to implement
the U.S. Treasury Security reporting changes; therefore, this threshold
would ensure that FINRA receives valuable audit trail information for
U.S. Treasury Security trades from more active firms.
---------------------------------------------------------------------------

    \26\ See supra note 8.
---------------------------------------------------------------------------

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    The proposed rule change was published for comment in Regulatory
Notice 20-43 (December 2020). Nine comments were received in response
to the Regulatory Notice. A copy of the Regulatory Notice is available
on FINRA's website at http://www.finra.org. A list of the comment
letters received in response to the Regulatory Notice is available on
FINRA's website.\27\ Copies of the comment letters received in response
to the Regulatory Notice are also available on FINRA's website. The
comments received in response to the Regulatory Notice that relate to
the instant proposal are summarized below.\28\
---------------------------------------------------------------------------

    \27\ See SR-FINRA-2022-013 (Form 19b-4, Exhibit 2b) for a list
of abbreviations assigned to commenters (available on FINRA's
website at http://www.finra.org).
    \28\ FINRA notes that Regulatory Notice 20-43 solicited comment
on a number of potential enhancements to TRACE reporting for U.S.
Treasury Securities, including items that are not being proposed in
the instant filing. Thus, Item II.C. of this filing is limited to a
discussion of comments received in response to the Regulatory Notice
that relate to the items being proposed herein.
---------------------------------------------------------------------------

Execution Timestamps
    Comments regarding the proposed execution timestamp requirement
were mixed. Citadel supported the proposal to increase the granularity
of execution timestamps to match execution systems.\29\ EA supported
normalizing the Time of Execution information received and the general
language proposed in the Regulatory Notice, but stated that it should
be revised to indicate best and worst boundaries, i.e., the worst being
one second and the best one microsecond as currently supported by the
TRACE facility.\30\ As discussed above, the proposed rule change would
clarify that the Time of Execution must be reported in an increment of
no longer than a second and no shorter than a microsecond.
---------------------------------------------------------------------------

    \29\ See Citadel at 4.
    \30\ See EA at 1-2.
---------------------------------------------------------------------------

    FIF did not support increasing the granularity of execution
timestamps to match execution systems, stating that the proposal would
require significant system changes to match the granularity of internal
and third-party execution systems, and requested that FINRA provide
additional insight into the objective of the proposal.\31\ SIFMA also
generally did not support increasing the granularity of execution
timestamps, stated that the proposal would present technological
complexities, and asked that FINRA provide additional information
regarding the objectives of the proposal so that execution time
information can be structured in a way that reflects the complexities
of market practice, firm systems, and interactions among market
participants.\32\ SIFMA further stated that, while some firms already
provide information at this level of granularity, it is not standard
across firms, and that using the most granular time component within
any element of larger systems would create substantial operational
challenges. In addition, SIFMA noted that it is likely that firms
receive timestamps at differing increments across venues (or
potentially even products), and therefore it would not be an easy or
straightforward undertaking to create the level of uniformity required
by the proposal.
---------------------------------------------------------------------------

    \31\ See FIF at 5-6.
    \32\ See SIFMA at 4-5.
---------------------------------------------------------------------------

    As discussed above, FINRA acknowledges that some members may need
to make operational and technological changes to comply with the
amended timestamp requirement. However, FINRA continues to believe that
the benefits to the regulatory audit trail of aligning the timestamps
reported to TRACE with those captured by the relevant execution system
are appropriate. In particular, requiring firms to align the reporting
system timestamp granularity to the level of granularity used in the
execution system would result in more precise information with respect
to the Time of Execution of transactions in U.S. Treasury Securities
that would be available to FINRA and the official sector, which would
assist with trade matching and sequencing for U.S. Treasury Securities.
FINRA also notes that the proposed timestamp requirement would provide
an exception for members with limited trading activity, which is
intended to provide relief for firms with limited activity in the U.S.
Treasury Security markets from making the operational and technological
changes that may be needed to update their systems to comply with the
new requirements.
    SIFMA raised concerns regarding the proposed requirement for
transactions that are ``executed electronically,'' and stated that it
is unclear which transactions would be within scope of the proposal,
and further stated that creating a different standard for voice versus
electronic trades would create confusion. SIFMA also asserted that it
would be most effective from a technological perspective to apply the
same timestamp standards across all TRACE-Eligible Securities, such
that timestamp granularity for U.S. Treasury Securities would be
informed by the limitations and structural constraints that shape
reporting timestamps for other TRACE-Eligible Securities.
    With respect to commenter concerns regarding members' ability to
accurately identify transactions that are ``executed electronically''
and the impact of establishing different standards for voice versus
electronic trades, FINRA notes that the existing timestamp granularity
provision for U.S. Treasury Securities in Rule 6730.04 specifically
applies to transactions that are ``executed electronically,'' and FINRA
is

not aware that there has been confusion regarding the scope of the
current requirement that has resulted in compliance concerns for
members. To the extent that members encounter interpretive questions,
FINRA will work with the industry to provide guidance, as appropriate,
with respect to the proposed amendments.
    FINRA appreciates commenter concerns regarding requiring a
different timestamp granularity standard for U.S. Treasury Securities
than for other TRACE-Eligible Securities. FINRA notes that, to the
extent preferable, members may choose to make the systems changes
required under the proposal for reporting all TRACE-Eligible Securities
in the same increment as captured by the execution system used to
execute the transaction (to the extent this is preferable to making the
change solely for U.S. Treasury Securities). FINRA also notes that the
proposal would not require that trades executed electronically be
captured by execution systems in increments finer than a second;
however, to the extent that the execution system uses a finer
increment, the proposal would require that TRACE reports also reflect
such finer increment (but no finer than a microsecond, in line with
TRACE system parameters).
Reporting Timeframe Reduction
    Comments regarding reducing the reporting timeframe for U.S.
Treasury Securities were generally supportive. EA supported the
proposed 60-minute reporting timeframe, noting that it already reports
transactions within this timeframe. EA stated that the 60-minute
requirement would be a significant step forward while still allowing
members sufficient time between execution and reporting to resolve any
system issues.\33\ FIA PTG stated that there was no justification for
the lengthy reporting window that exists today in light of the
prevalence of electronic trading in this market.\34\ As such, FIA PTG
stated that, at a minimum, it supported the proposed reduction to a 60-
minute timeframe, but would generally recommend further reducing the
reporting timeframe to no greater than 15 minutes, congruent with
current reporting requirements for corporate bonds. Additionally, with
respect to on-the-run U.S. Treasury Securities, FIA PTG recommended a
10-second reporting window to mirror U.S. equity markets, given the
liquidity profile of the market for on-the-run U.S. Treasury
Securities.
---------------------------------------------------------------------------

    \33\ See EA at 2.
    \34\ See FIA PTG at 1.
---------------------------------------------------------------------------

    Similarly, both Citadel and MFA supported the proposed reporting
timeframe reduction, but both recommended further reducing the period
to 15 minutes to harmonize reporting with corporate bonds.\35\ Citadel
agreed that the proposed reduction would provide the official sector
with access to more timely data regarding intraday pricing and
liquidity dynamics. Citadel argued that market participants should be
well-situated to comply with a 15-minute timeframe for U.S. Treasury
Securities, noting that members already report approximately 95% of
U.S. Treasury Security transactions within an hour after execution,
despite not being required to report until end-of-day. Citadel further
stated that harmonizing reporting timeframes is warranted given the
ongoing consideration of whether to publicly report secondary market
U.S. Treasury Security transactions, as public dissemination would
require trading activity to be reported to FINRA as soon as possible
following execution. MFA also argued that regulators should have the
same timely data with respect to the U.S. Treasury Securities as they
do for corporate bonds, noting that timely data is critical for
regulators to perform their supervisory functions, especially in times
of extreme market volatility.
---------------------------------------------------------------------------

    \35\ See Citadel at 1-2; MFA at 2.
---------------------------------------------------------------------------

    FIF stated that its members generally do not object to a reduction
in the reporting timeframe. FIF stated that some members recommend a
two-hour timeframe rather than the proposed 60-minute timeframe, while
other FIF members recommend a shorter timeframe that is harmonized with
requirements in other asset classes (i.e., 15 minutes for corporate
bonds).\36\ SIFMA noted that, although shortening the reporting
timeframe would be a substantial change, its members feel that some
shortening of the reporting timeframe would be feasible for firm
systems, provided that any change includes sufficient time for
implementation and testing.\37\ However, SIFMA recommends moving to a
reporting timeframe of, at most, two hours, rather than the proposed
60-minute timeframe. SIFMA noted that operational challenges would be
inherent in moving from the current reporting timeframe to the proposed
60 minute-timeframe, including the impact of transmitting more data
through systems on an intraday basis, as well as the potential for
increased late reports, cancels and corrections. SIFMA also stated that
the reporting timeframe should reflect the unique operational and
market responsibilities of firms active in the U.S. Treasury Security
market, noting for example that primary dealers have responsibilities
to support auctions and open market activity, such that a wider
reporting window would provide more flexibility to meet firms' other
time-sensitive requirements.
---------------------------------------------------------------------------

    \36\ See FIF at 6.
    \37\ See SIFMA at 5-6.
---------------------------------------------------------------------------

    FINRA continues to believe that requiring members to report as soon
as practicable, but no later than 60 minutes from the Time of Execution
is appropriate for U.S. Treasury Securities. The proposed reporting
timeframe would provide FINRA and the official sector with more timely
data regarding U.S. Treasury Security transactions, which will
significantly increase the ability of regulators to monitor intraday
pricing and liquidity information in the U.S. Treasury Security
markets. FINRA does not agree that a longer outer limit reporting
timeframe than 60 minutes--e.g., two hours--would be appropriate, as it
would reduce the timeliness of intraday data available to FINRA and the
official sector. FINRA does not believe that the operational challenges
of reporting within 60 minutes would be significantly greater than
reporting within two hours. As discussed above in the Economic Impact
Assessment, FINRA notes that members already report over 90 percent of
transactions in U.S. Treasury Securities within 60 minutes of the Time
of Execution. FINRA also does not believe that establishing an outer
limit of 15 minutes or 10 seconds is appropriate. As noted above,
individual transaction information for U.S. Treasury Securities is not
publicly disseminated, and therefore the shorter timeframes that
generally apply to disseminated transactions are not necessary for U.S.
Treasury Securities. Thus, FINRA continues to believe that requiring
members to report as soon as practicable, but no later than 60 minutes
from the Time of Execution is appropriate for U.S. Treasury Securities
as it would provide more timely information for regulatory use while
balancing concerns regarding the burdens that would be imposed on
reporting members.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days of such
date (i) as the Commission may designate if it finds such longer period
to be appropriate and publishes its reasons for so finding

or (ii) as to which the self-regulatory organization consents, the
Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-FINRA-2022-013 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-FINRA-2022-013. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10 a.m. and 3
p.m. Copies of such filing also will be available for inspection and
copying at the principal office of FINRA. All comments received will be
posted without change. Persons submitting comments are cautioned that
we do not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
FINRA-2022-013 and should be submitted on or before June 24, 2022.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\38\
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    \38\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-11878 Filed 6-2-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 40 (Friday, February 28, 2020)]
[Proposed Rules]
[Pages 11904-11906]
[FR Doc No: 2020-04087]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket Number USCG-2020-0088]
RIN 1625-AA00

Safety Zone; New Jersey Intracoastal Waterway, Atlantic City, NJ

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard is proposing to establish a temporary safety
zone for certain navigable waters of the New Jersey Intracoastal
Waterway. The safety zone is needed to protect participants of the
Stockton University-AC Double Duel Regatta on these navigable waters
near Atlantic City, NJ, during the rowing competition on April 4, 2020,
and April 5, 2020. This proposed rulemaking would prohibit non-
participant persons and vessels from entering, transiting through,
anchoring in, or remaining within the safety zone unless authorized by
the Captain of the Port (COTP) Delaware Bay or a designated
representative. We invite your comments on the proposed rulemaking.

DATES: Comments and related material must be received by the Coast
Guard on or before March 16, 2020.

ADDRESSES: You may submit comments identified by docket number USCG-
2020-0088 using the Federal eRulemaking Portal at https://www.regulations.gov. See the ``Public Participation and Request for
Comments'' portion of the SUPPLEMENTARY INFORMATION section for further
instructions on submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
proposed rulemaking, call or email Petty Officer Thomas Welker, U.S.
Coast Guard Sector Delaware Bay, Waterways Management Division;
telephone<PHONE_NUMBER>, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

CFR Code of Federal Regulations
COTP Captain of the Port
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
Sec.  Section
U.S.C. United States Code

II. Background, Purpose, and Legal Basis

    The Stockton University Athletic Department notified the Coast
Guard that it will be conducting a rowing competition from noon to 6:30
p.m. on April 4, 2020, and from 7:30 a.m. to 1:30 p.m. on April 5,
2020. The competition will consist of rowing teams in 40' to 60' racing
shells on a 2000-meter course in the New Jersey Intracoastal Waterways
of Atlantic City, New Jersey. The Captain of the Port Delaware Bay
(COTP) has determined that potential hazards associated with this
rowing event will be a safety concern for participants and for vessels
operating within the specified waters of the New Jersey Intracoastal
Waterway.
    The purpose of this rulemaking is to protect participants,
spectators, and transiting vessels on waters near the regatta on the
New Jersey Intracoastal Waterway before, during, and after the
scheduled event. The Coast Guard is proposing this rulemaking under
authority 46 U.S.C. 70034 (previously 33 U.S.C. 1231).

III. Discussion of Proposed Rule

    The Coast Guard is proposing to establish a temporary safety zone
from noon on April 4, 2020, until 2 p.m. on April 5, 2020. The zone
would be enforced from noon to 7 p.m. on April 4, 2020, and from 7 a.m.
to 2 p.m. on April 5, 2020. The safety zone would cover all navigable
waters of the New Jersey Intracoastal Waterway within the polygon
bounded by the following: Originating on the southwest portion at
approximate position latitude 39[deg]20'57'' N, longitude
074[deg]27'59'' W; thence northeasterly along the shoreline to latitude
39[deg]21'35'' N, longitude 074[deg]27'06'' W; thence east across the
mouth of Beach Thorofare to the shoreline at latitude 39[deg]21'41'' N,
longitude 074[deg]26'55'' W; thence east along the shoreline to
latitude 39[deg]21'42''N, longitude 074[deg]26'51'' W; thence southeast
across the New Jersey Intracoastal Waterway to the shoreline at
latitude 39[deg]21'43'' N, longitude 074[deg]26'41'' W; thence
southwest along the shoreline to approximate position latitude
39[deg]20'55'' N, longitude 074[deg]27'57'' W; thence north to the
point of origin. The duration of the zone is

intended to ensure the safety of participants and vessels on these
navigable waters before, during, and after the rowing event. No person
or vessel will be permitted to enter, transit through, anchor in, or
remain within the safety zone without obtaining permission from the
COTP Delaware Bay or a designated representative. If the COTP Delaware
Bay or a designated representative grants authorization to enter,
transit through, anchor in, or remain within the safety zone, all
persons and vessels receiving such authorization must comply with the
instructions of the COTP Delaware Bay or a designated representative.
The regulatory text we are proposing appears at the end of this
document.

IV. Regulatory Analyses

    We developed this proposed rule after considering numerous statutes
and Executive orders related to rulemaking. Below we summarize our
analyses based on a number of these statutes and Executive orders, and
we discuss First Amendment rights of protestors.

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. Executive Order 13771 directs agencies to control
regulatory costs through a budgeting process. This NPRM has not been
designated a ``significant regulatory action,'' under Executive Order
12866. Accordingly, the NPRM has not been reviewed by the Office of
Management and Budget (OMB), and pursuant to OMB guidance it is exempt
from the requirements of Executive Order 13771.
    The impact of this proposed rule is not significant for the
following reasons: (1) The enforcement periods will last seven hours
each day of the 2-day event at a time of year when vessel traffic is
usually low; (2) although non-participant persons and vessels may not
enter, transit through, anchor in, or remain with the safety zone
without authorization from the COTP Delaware Bay or a designated
representative, surrounding channels within the New Jersey Intracoastal
Waterways will remain unaffected. Persons and vessels will be able to
operate in the surrounding area during the enforcement period; (3)
persons and vessels will still be able to enter, transit through,
anchor in, or remain within the regulated area if authorized by the
COTP Delaware Bay or a designated representative; and (4) the Coast
Guard will provide advance notification of the safety zone to the local
maritime community by Local Notice to Mariners, Broadcast Notice to
Mariners, and on-scene actual notice from designated representatives.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as
amended, requires Federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this
proposed rule will not have a significant economic impact on a
substantial number of small entities.
    While some owners or operators of vessels intending to transit the
safety zone may be small entities, for the reasons stated in section
V.A above, this proposed rule would not have a significant economic
impact on any vessel owner or operator.
    If you think that your business, organization, or governmental
jurisdiction qualifies as a small entity and that this rule would have
a significant economic impact on it, please submit a comment (see
ADDRESSES) explaining why you think it qualifies and how and to what
degree this rule would economically affect it.
    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this proposed rule. If the rule would affect
your small business, organization, or governmental jurisdiction and you
have questions concerning its provisions or options for compliance,
please contact the person listed in the FOR FURTHER INFORMATION CONTACT
section. The Coast Guard will not retaliate against small entities that
question or complain about this proposed rule or any policy or action
of the Coast Guard.

C. Collection of Information

    This proposed rule would not call for a new collection of
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520).

D. Federalism and Indian Tribal Governments

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this proposed rule under that Order and
have determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132.
    Also, this proposed rule does not have tribal implications under
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it does not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes. If
you believe this proposed rule has implications for federalism or
Indian tribes, please contact the person listed in the FOR FURTHER
INFORMATION CONTACT section.

E. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this proposed rule will not
result in such an expenditure, we do discuss the effects of this rule
elsewhere in this preamble.

F. Environment

    We have analyzed this proposed rule under Department of Homeland
Security Directive 023-01, Rev. 1, associated implementing
instructions, and Environmental Planning COMDTINST 5090.1 (series),
which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made
a preliminary determination that this action is one of a category of
actions that do not individually or cumulatively have a significant
effect on the human environment. This proposed rule involves a safety
zone lasting seven hours per day for two days that would prohibit entry
within certain navigable waters during a rowing event. Normally such
actions are categorically excluded from further review under paragraph
L60(a) of Appendix A, Table 1 of DHS Instruction Manual 023-01-001-01,
Rev. 1. A preliminary Record of Environmental Consideration supporting
this determination is available in the docket. For instructions on
locating the docket, see the

ADDRESSES section of this preamble. We seek any comments or information
that may lead to the discovery of a significant environmental impact
from this proposed rule.

G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to contact the person listed in the FOR FURTHER
INFORMATION CONTACT section to coordinate protest activities so that
your message can be received without jeopardizing the safety or
security of people, places or vessels.

V. Public Participation and Request for Comments

    We view public participation as essential to effective rulemaking,
and will consider all comments and material received during the comment
period. Your comment can help shape the outcome of this rulemaking. If
you submit a comment, please include the docket number for this
rulemaking, indicate the specific section of this document to which
each comment applies, and provide a reason for each suggestion or
recommendation.
    We encourage you to submit comments through the Federal eRulemaking
Portal at https://www.regulations.gov. If your material cannot be
submitted using https://www.regulations.gov, call or email the person
in the FOR FURTHER INFORMATION CONTACT section of this document for
alternate instructions.
    We accept anonymous comments. All comments received will be posted
without change to https://www.regulations.gov and will include any
personal information you have provided. For more about privacy and
submissions in response to this document, see DHS's Correspondence
System of Records notice (84 FR 48645, September 26, 2018).
    Documents mentioned in this NPRM as being available in the docket,
and all public comments, will be in our online docket at https://www.regulations.gov and can be viewed by following that website's
instructions. Additionally, if you go to the online docket and sign up
for email alerts, you will be notified when comments are posted or a
final rule is published.

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard is
proposing to amend 33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for part 165 continues to read as follows:

    Authority:  46 U.S.C. 70034, 70051; 33 CFR 1.05-1, 6.04-1, 6.04-
6, and 160.5; Department of Homeland Security Delegation No. 0170.1.

0
2. Add Sec.  165.T05-0088 to read as follows:

Sec.  165.T05-0088  Safety Zone; New Jersey Intracoastal Waterway,
Atlantic City, NJ.

    (a) Location. The following area is a safety zone: All navigable
waters of the New Jersey Intracoastal Waterway in Atlantic City, NJ,
within the polygon bounded by the following: Originating on the
southwest portion at approximate position latitude 39[deg]20'57'' N,
longitude 074[deg]27'59'' W; thence northeasterly along the shoreline
to latitude 39[deg]21'35'' N, longitude 074[deg]27'06'' W; thence east
across the mouth of Beach Thorofare to the shoreline at latitude
39[deg]21'41'' N, longitude 074[deg]26'55'' W; thence east along the
shoreline to latitude 39[deg]21'42'' N, longitude 074[deg]26'51'' W;
thence southeast across the New Jersey Intracoastal Waterway to the
shoreline at latitude 39[deg]21'43'' N, longitude 074[deg]26'41'' W;
thence southwest along the shoreline to approximate position latitude
39[deg]20'55'' N, longitude 074[deg]27'57'' W; thence north to the
point of origin.
    (b) Definitions. As used in this section, designated representative
means a Coast Guard Patrol Commander, including a Coast Guard petty
officer, warrant or commissioned officer on board a Coast Guard vessel
or on board a federal, state, or local law enforcement vessel assisting
the Captain of the Port (COTP), Delaware Bay in the enforcement of the
safety zone.
    (c) Regulations. (1) Under the general safety zone regulations in
subpart C of this part, you may not enter the safety zone described in
paragraph (a) of this section unless authorized by the COTP or the
COTP's designated representative.
    (2) To seek permission to enter or remain in the zone, contact the
COTP or the COTP's representative via VHF-FM channel 16 or 215-271-
4807. Those in the safety zone must comply with all lawful orders or
directions given to them by the COTP or the COTP's designated
representative.
    (3) This section applies to all vessels except those engaged in law
enforcement, aids to navigation servicing, and emergency response
operations.
    (d) Enforcement. The U.S. Coast Guard may be assisted in the patrol
and enforcement of the safety zone by Federal, State, and local
agencies.
    (e) Enforcement period. This zone will be enforced from noon to
approximately 7 p.m. on April 4, 2020, and from approximately 7 a.m. to
2 p.m., or shortly before that, on April 5, 2020.

     Dated: February 24, 2020.
Scott E. Anderson,
Captain, U.S. Coast Guard, Captain of the Port Delaware Bay.
[FR Doc. 2020-04087 Filed 2-27-20; 8:45 am]
 BILLING CODE 9110-04-P