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Tuesday, December 31, 2019

Equity Trader Alert #2019 - 98
FINRA/Nasdaq TRF Transaction Credits Update Effective January 1, 2020

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  • Pricing

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The FINRA/Nasdaq TRF1 is increasing its quarterly transaction credits to Non-Retail and Retail Participants effective Wednesday, January 1, 2020. Subject to a rule filing to amend FINRA Rule 7610A (see SR-FINRA-2019-029 for additional information), all participants that achieve a market share of less than 1.0% but greater than or equal to 0.50% in securities in Tapes A and C, or less than 1.0% but greater than or equal to 0.35% for Tape B securities, will now be eligible to receive 85% of attributable revenues for securities in each Tape. The new pricing replaces a 75% transaction credit in Tapes A and C and a 70% transaction credit in Tape B.

Below is a side-by-side comparison of FINRA/Nasdaq TRF Non-Retail Participant and TRF Retail Participant transaction credit tiers starting January 1, 2020.

Tape A

Percent Market Share 1 TRF Non-Retail Participant Payout Tier TRF Retail Participant Payout Tier
Greater than or equal to 2% 98% 98%
Less than 2% but greater than or equal to 1% 95% 95%
Less than 1% but greater than or equal to 0.5% 85% 85%
Less than 0.5% but greater than or equal to 0.1% 20% 75%
Less than 0.1% 0% 75%

Tape B

Percent Market Share 1 TRF Non-Retail Participant Payout Tier TRF Retail Participant Payout Tier
Greater than or equal to 2% 98% 98%
Less than 2% but greater than or equal to 1% 90% 90%
Less than 1% but greater than or equal to 0.35% 85% 85%
Less than 0.35% but greater than or equal to 0.1% 10% 70%
Less than 0.1% 0% 70%

Tape C

Percent Market Share 1 TRF Non-Retail Participant Payout Tier TRF Retail Participant Payout Tier
Greater than or equal to 2% 98% 98%
Less than 2% but greater than or equal to 1% 95% 95%
Less than 1% but greater than or equal to 0.5% 85% 85%
Less than 0.5% but greater than or equal to 0.1% 20% 75%
Less than 0.1% 0% 75%

1: "FINRA/Nasdaq TRF” means the FINRA/Nasdaq TRF Carteret and the FINRA/Nasdaq TRF Chicago, depending on the facility to which the member firm reports.

FINRATM, Trade Reporting FacilityTM, and TRFTM, are trademarks of Financial Industry Regulatory Authority, Inc.; FINRA/Nasdaq TRFTM is used under license for Financial Industry Regulatory Authority, Inc.


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