Regulatory Notice 09-08

SEC Approves Amendments to FINRA Trade Reporting Rules; Effective Date: August 3, 2009

Executive Summary

Effective Monday, August 3, 2009, firms' trade reporting obligations for over-the-counter (OTC) equity transactions1 will change. Specifically, amendments to FINRA trade reporting rules will:

 

  • replace the current market maker-based trade reporting structure with an "executing party" structure; and
  • require firms with the trade reporting obligation that are acting in a riskless principal or agency capacity on behalf of another member firm(s) to submit non-tape report(s) to FINRA, as necessary, to identify such other firm(s) as a party to the trade.

 

The text of the amendments can be found at www.finra.org/rulefilings/2008-011/.

 

Questions regarding this Notice may be directed to the Legal Section, Market Regulation, at (240) 386-5126; or the Office of General Counsel, at (202) 728-8071.

 

1 OTC equity transactions are: (1) transactions in NMS stocks effected otherwise than on an exchange, which are reported through the Alternative Display Facility (ADF) or a Trade Reporting Facility (TRF); and (2) transactions in OTC Equity Securities (e.g., OTC Bulletin Board and Pink Sheets securities), Direct Participation Program (DPP) securities and PORTAL equity securities, which are reported through the OTC Reporting Facility (ORF). The ADF, TRFs and ORF are collectively referred to herein as the "FINRA Facilities."