Regulatory Notice 12-07
FINRA Requests Comment on Proposed Amendments Relating to Reporting of OTC Trades Executed in a Mixed Capacity
FINRA requests comment on a proposal to amend FINRA trade reporting rules relating to the reporting of OTC trades in equity securities that are executed by a member firm in a mixed trading capacity (e.g., a single trade execution by a firm as principal and agent). FINRA is considering alternative approaches, such as (1) requiring firms to report a mixed-capacity trade as multiple trade executions with the member firm’s capacity properly identified in each trade report, or (2) permitting a mixed-capacity trade to be reported in a single trade report and requiring firms to submit a non-tape report linked to the original trade report to identify the portion of the trade executed in a different capacity (i.e., agent, principal or riskless principal).
Questions concerning this Notice should be directed to:
- Legal Section, Market Regulation, at (240) 386-5126; or
- Office of General Counsel at (202) 728-8071.