trade reporting requirement

Exam Alert: FINRA Provides Information to the Public on Dark Pool Transactions and 144A Transactions

On June 2, 2014, FINRA began providing information to the investing public about the transactions that occur on alternative trading systems (ATSs), including “dark pools.” On June 30, 2014, FINRA began providing information to the investing public about 144A transactions in corporate debt. Continue reading

On June 2, 2014, FINRA began providing information to the investing public about the transactions that occur on alternative trading systems (ATSs), including “dark pools.” Investors can see the total shares traded each week at each ATS. The information is available for free to non-professionals at FINRA’s website. Professionals must purchase a subscription to access the data.

On June 30, 2014, FINRA began providing information to the investing public about 144A transactions in corporate debt. 144A transactions are resales of corporate debt securities to large institutions called qualified institutional buyers (QIBs). Nearly 20 percent of the trading volume in corporate debt securities were 144A transactions in the first quarter of 2014. 144A issues are often foreign IPOs.

Information on 144A transactions will be disseminated through the Trade Reporting and Compliance Engine (TRACE) and through FINRA’s Market Data Center. The standards for dissemination will be the same as for non-144A transactions: a dissemination cap of $5 million for investment-grade corporate debt transactions, and a dissemination cap of $1 million for high-yield corporate debt transactions. 144A transactions are also subject to the same 15 minute reporting requirement as non-144A corporate debt transactions.

This alert applies to the Series 7, Series 24, Series 62, Series 79, and Series 82.

Sources:
FINRA Makes Dark Pool Data Available Free to the Investing Public
FINRA Brings 144A Corporate Debt Transactions Into the Light
FINRA Shines More Light on Some Private Bond Trades

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.

Exam Alert: FINRA requires firms to report trades within 10 seconds

Effective November 4, 2013, FINRA will require firms to report OTC trades in equity securities within 10 seconds of execution. Firms must also report cancellations of trades within 10 seconds. Continue reading

Effective November 4, 2013, FINRA will require firms to report OTC trades in equity securities within 10 seconds of execution. Firms must also report cancellations of trades within 10 seconds.

Note that trades should be reported “as soon as practicable.” 10 seconds is the cut-off after which the trade report will be considered late. FINRA recognizes, however, that certain trade reports may need to be entered manually – in these situations, FINRA will consider the complexity and size of the trade in determining whether there is “reasonable justification” for manually entering the trade report.

Source: Regulatory Notice 13-19: SEC Approves Amendments to Require Firms to Report OTC Transactions in Equity Securities as Soon as Practicable, But No Later Than 10 Seconds, Following Execution

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

Exam Alert: 30-second trade reporting requirement is in effect

Effective November 10, 2010, FINRA’s prior 90-second trade reporting requirement has been replaced with a Continue reading

Effective November 10, 2010, FINRA’s prior 90-second trade reporting requirement has been replaced with a 30-second trade reporting requirement. This applies to OTC trades made in equity securities during the hours that FINRA trade reporting facilities are open (generally 8 AM to 8 PM Eastern Time). This change also affects trade cancellations that were subject to 90-second reporting. Note that bonds are typically have a 15-minute trade reporting requirement.
Relevant to the Series 7, Series 62 and the Series 24 General Securities Principal exam.

http://www.finra.org/Industry/Regulation/Notices/2010/P121342