Exam Alert: FINRA Revises OATS, ORF, and ADF/TRF Trade Reporting Rules

FINRA is revising the trade reporting rules for the Order Audit Trail System (OATS) and for FINRA facilities. The changes require… Continue reading

FINRA is revising the trade reporting rules for the Order Audit Trail System (OATS) and for FINRA facilities. The changes require:

  • reporting additional times for certain transactions
  • expressing trade times in milliseconds
  • linking reversal reports to the original trade
  • reporting trades on non-business days and trades that are over a year old to FINRA facilities
  • using a new “step-in” indicator (when a firm takes over a position from another firm)
  • keeping declined trades in the system so they may still be cancelled, corrected, or accepted

Effective April 7, 2014, FINRA has modified the rules for the Order Audit Trail System (OATS).

Effective September 15, 2014, FINRA will modify the rules for the OTC Reporting Facility (ORF).

Effective September 29, 2014, FINRA will require firms to report the time of trades in milliseconds when reporting to the Alternative Display Facility (ADF) or to Trade Reporting Facilities (TRFs).

FINRA will implement the other changes to ADF and TRF reporting rules in the first quarter of 2015.

Source: FINRA Regulatory Notice 14-21: SEC Approves Amendments to Equity Trade Reporting and OATS Rules

This alert applies to the Series 7, Series 24, Series 55, and Series 62.

One thought on “Exam Alert: FINRA Revises OATS, ORF, and ADF/TRF Trade Reporting Rules”

  1. Hello,

    I just saw this news and going to take the exam next week. The news says some of rules have been changed and some will be later this year but it doesn’t say what will be covered on the exam what are not. Just wondering will only the ruled changed be on the exam or the rules going to be effective on the exam as well? Thanks!

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