FINRA proposes admin and subscription fees for SLATE
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FINRA proposes admin and subscription fees for SLATE 27 November 2024US Reporter: Daniel Tison
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The Financial Industry Regulatory Authority (FINRA) has filed a proposed rule change with the US Securities and Exchange Commission (SEC) to adopt fees supporting its new reporting facility.
If approved, the proposed Rule 7720 will introduce fees for reporting securities loans, including a US$0.07 fee per initial loan report submission and a US$0.03 fee for every modification.
In addition, SLATE participants would be charged an additional US$0.10 fee per cancelled, corrected, or deleted securities loan report, and late submissions could incur a US$0.20 charge.
Participants can choose to report covered securities loans to FINRA either via the SLATE web browser, or a third-party reporting intermediary, with a monthly connecting fee of US$25 per user.
SLATE will also offer securities loan data products, with subscription fees tailored for general subscribers and tax-exempt organisations.
Data subscription fees will range from US$1,500 per month for qualifying tax-exempt organisations to US$10,000 per month for vendors displaying the data externally.
In its economic impact assessment, FINRA estimates annual revenues of approximately US$4.5 million from reporting fees and data subscriptions, aligning with SLATE’s operational costs.
In its filing, the authority says: “In an effort to make SLATE financially self-sustaining on an ongoing basis, the proposed fees are designed to generate an amount of revenue that is calibrated to align with the estimated incremental direct ongoing costs associated with the SLATE program, to enable FINRA to meet its obligations pursuant to the SEA Rule 10c-1a mandate.”
The proposal is currently under the SEC’s review, and stakeholders can submit feedback until 18 December.
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