2024-21625. Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend FINRA Rule 6897(b) (CAT Cost Recovery Fees) To Implement a Historical ...

Period	Participants' collective share of historical CAT costs 1	FINRA's share of historical CAT costs 1
Pre-FAM Period (Prior to June 22, 2020)	$41,430,243	$1,716,067
( print page 77560)
FAM Period 1	2,125,781	88,051
FAM Period 2	14,325,493	593,371
FAM Period 3	48,138,423	1,993,925
Total (through January 1, 2022)	106,019,940	4,391,414

FINRA's recovery of these approximately $4.4 million in Historical CAT Costs is reasonable and consistent with the Exchange Act. As discussed herein and in File No. SR-FINRA-2024-013, these costs were reasonable, appropriate and necessary for the creation, implementation and maintenance of the CAT. As stated by FINRA and permitted under the Exchange Act, FINRA will seek to recover its portion of the Participants' share of CAT costs to ensure that FINRA can fulfill its regulatory mandate and responsibilities.^[20]

Historical CAT Cost Recovery Assessment 1

FINRA is proposing to amend Rule 6897(b) (CAT Cost Recovery Fees) to implement Historical CAT Cost Recovery Assessment 1 at this time to allow FINRA to recover its contributions to the Participants' designated one-third share of Historical CAT Costs 1.^[21] FINRA intends that the fee framework for the Historical CAT Cost Recovery Assessment 1 would generally correspond to the framework put in place by CAT LLC with respect to Historical CAT Assessment 1, as provided for in File No. SR-FINRA-2024-013. FINRA also intends that the timing and commencement of payment for Historical CAT Cost Recovery Assessment 1 generally would correspond with that established by CAT LLC with respect to Historical CAT Assessment 1, as provided for in File No. SR-FINRA-2024-013. Thus, as with Historical CAT Assessment 1, FINRA proposes that each member CAT Executing Broker shall receive its first invoice from FINRA for Historical CAT Cost Recovery Assessment 1 in November 2024, setting forth fees calculated based on October 2024 transactions in Eligible Securities executed otherwise than on an exchange, as reflected in CAT Data.

The following fields of the Participant Technical Specifications indicate the CAT Executing Brokers for transactions executed otherwise than on an exchange.^[22]

TRF/ORF/ADF Transaction Data Event ^[23]

No.	Field name	Data type	Description	Include key
26	reporting Executing Mpid	Member Alias	MPID of the executing party	R.
28	contra Executing Mpid	Member Alias	MPID of the contra-side executing party	C.