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.