Regulatory Notice 10-24

SEC Approves Amendments to Require Reporting of OTC Trades in Equity Securities Within 30 Seconds of Execution; Effective Date: November 1, 2010

Executive Summary

Effective Monday, November 1, 2010, firms are required to report over-the-counter transactions in equity securities to FINRA within 30 seconds of execution. The new reporting time frame also applies to trade cancellations that currently are subject to 90-second reporting, as well as stop stock and prior reference price trades.

 

Also effective as part of the November 1, 2010, changes, firms are required to report secondary market transactions in non-exchange-listed direct participation program securities within 30 seconds of execution. Therefore, such transactions will be subject to regulatory transaction fees under Section 3 of Schedule A to the FINRA By-Laws.

 

Firms that rely on manual trade reporting processes may qualify for an additional six months for implementation, as described in this Notice.

 

The text of the amendments is available at www.finra.org/rulefilings/2009-061.

 

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.