MFA Letter in Support of Greater SEC Oversight of National Market System Rules

On December 6, MFA submitted comments to the SEC in response to its request for comments on its Proposal to rescind the Effective-Upon-Filing procedure for NMS plan fee amendments (i.e., consolidated data fees or, in the future, consolidated audit trail fees).  MFA supported the Proposal and believes that it would help ensure that fees are fair and reasonable before they go into effect.  The Proposal would achieve one of the recommendations from the petition MFA and AIMA submitted on August 22, 2018 to amend Regulation NMS to allow for public notice and comment prior to the Commission’s approval or disapproval of securities information processor (“SIP”) plan fee changes.

MFA’s letter also recommends that the Commission enhance transparency by requiring NMS plans to file costs related to NMS plan fee amendments or fee changes.  MFA is of the view that greater cost transparency will help ensure that NMS plan fees are fair and reasonable and not unreasonably discriminatory, as required by the Exchange Act.