Proposed Rule Change Relating to Clearing Reports for Previously Executed Trades

NASD has filed with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to amend NASD Rules 6130, 6130A, 6130C, 6130D and 6130E to prohibit members from submitting to an NASD Facility (i.e., the Alternative Display Facility ("ADF") or a Trade Reporting Facility) any report (including but not limited to reports of step-outs and reversals) associated with a previously executed trade that was not reported to that NASD Facility, except where such report reflects the offsetting "riskless" portion of a riskless principal transaction. NASD also is proposing to amend NASD Rules 4632(d), 4632A(e), 4632C(d), 4632D(e) and 4632E(e) to clarify that where the first leg of a riskless principal transaction is reported to NASD, the second leg must also be reported to NASD; however, in such circumstance, members are not required to report both legs of the transaction to the same NASD Facility.

TitleFormat - SizeStatus
Text of Proposed Rule ChangePDF - 120.43 KB
Notice of Filing and Immediate EffectivenessPDF - 59.6 KB