Regulatory Notice 14-07

SEC Approves New Requirements for Alternative Trading Systems

Implementation Dates: May 12, 2014 (ATS Reporting Requirement); November 10, 2014 (MPID Requirement)
On October 2, 2014, FINRA filed a rule change to postpone the implementation date for the MPID requirement to February 2, 2015. On April 3, 2014, FINRA filed a rule change to amend FINRA Rule 4552 to exclude transactions in TRACE-eligible securities from the ATS weekly reporting requirements outlined in Rule 4552 and to amend the MPID requirement.

Executive Summary

The SEC approved a rule change to require alternative trading systems (ATS) to (i) report to FINRA weekly volume information and number of securities transactions within the ATS by security and (ii) acquire and use a single, unique market participant identifier (MPID) when reporting information to FINRA. The ATS reporting requirement will be implemented beginning May 12, 2014. The first ATS reports for the week of May 12 through May 16, 2014, will then be due by May 28, 2014. Each ATS must begin reporting order and trade information to FINRA using a unique MPID by November 10, 2014. This Notice provides more information for firms regarding each of these new requirements.

Questions concerning this Notice should be directed to:

  • FINRA Product Management at (866) 899-2107;
  • FINRA Market Operations at (866) 776-0800; or
  • for legal and interpretive questions, Brant Brown, Associate General Counsel, Office of General Counsel, at (202) 728-6927.