Notice2022-27959
Order Scheduling Filing of Statements on Review; In the Matter of the Financial Industry Regulatory Authority, Inc. for an Order Granting the Approval of Proposed Rule Change, as Modified by Amendment No. 2, To Establish a Corporate Bond New Issue Reference Data Service (File No. SR-FINRA-2019-008)
Primary source
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Published
December 23, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 246 (Friday, December 23, 2022)</title>
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[Federal Register Volume 87, Number 246 (Friday, December 23, 2022)]
[Notices]
[Pages 79014-79015]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-27959]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96541/December 20, 2022]
Order Scheduling Filing of Statements on Review; In the Matter of
the Financial Industry Regulatory Authority, Inc. for an Order Granting
the Approval of Proposed Rule Change, as Modified by Amendment No. 2,
To Establish a Corporate Bond New Issue Reference Data Service (File
No. SR-FINRA-2019-008)
On January 15, 2021, the Commission issued an order (``Approval
Order'') approving a proposed rule change (``Proposal'') by Financial
Industry Regulatory Authority, Inc. (``FINRA'') to establish a new
issue reference data service for corporate bonds.\1\ Bloomberg L.P.
(``Bloomberg'') filed a petition for review of the Approval Order in
the U.S. Court of Appeals for the District of Columbia Circuit (``D.C.
Circuit''), challenging the Commission's Approval Order.
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\1\ See Exchange Act Release No. 90939 (Jan. 15, 2021), 86 FR
6922 (Jan. 25, 2021) (Order Setting Aside Action by Delegated
Authority and Approving a Proposed Rule Change, as Modified by
Amendment No. 2, To Establish a Corporate Bond New Issue Reference
Data Service).
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The D.C. Circuit found that all but one of Bloomberg's arguments
lacked merit. Specifically, the D.C. Circuit concluded that the
Approval Order failed to sufficiently consider Bloomberg's ``concerns
about the costs that FINRA, as well as market participants, will incur
in connection to the creation and maintenance of the data service.''
\2\ The D.C. Circuit remanded to the Commission for reconsideration of
this issue, but did not vacate the Approval Order.\3\
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\2\ Bloomberg L.P. v. SEC, 45 F.4th 462, 466 (D.C. Cir. 2022).
\3\ Id. at 478.
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The court stated that ``on remand, `the Commission can redress its
failure of explanation' by analyzing the costs FINRA will incur in
building and maintaining its data service and how the costs of building
the data service will be remunerated if the fee proposal is ultimately
disapproved by the Commission.'' \4\ The D.C. Circuit's mandate, which
was issued on October 11, 2022, returned the matter to the Commission
for further proceedings.\5\
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\4\ Id. at 477.
\5\ Doc. No. 1968395, Case No. 21-1088 (D.C. Cir. Oct. 11,
2022).
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Accordingly, to facilitate the Commission's further review of the
Proposal, it is ordered, that by January 19, 2023, FINRA may submit any
additional statements or information that it considers relevant to the
Commission's analysis of the issue on remand, including the costs FINRA
expects to incur in building and maintaining its data service and how
the costs of building the data service would be remunerated if the fee
proposal is ultimately disapproved by the Commission.
Furthermore, the Commission is providing other parties and persons
30 days to respond to any additional statements or information FINRA
may submit.
Accordingly, it is ordered, that by February 18, 2023, any party or
other person may submit any additional statements or information such
party or other person considers relevant to the issue on remand.
[[Page 79015]]
By the Commission.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-27959 Filed 12-22-22; 8:45 am]
BILLING CODE 8011-01-P
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