For updates and guidance related to COVID-19 / Coronavirus, click here.
4551. Requirements for Alternative Trading Systems to Record and Transmit Order and Execution Information for Security Futures
(a) Alternative Trading Systems' Recording Requirements
(1) Each alternative trading system that accepts orders for security futures (as defined in Section 3(a)(55) of the Exchange Act) shall record each item of information described in paragraph (b) of this Rule. For purposes of this Rule, the term "order" includes a broker-dealer's proprietary quotes that are transmitted to an alternative trading system.
(2) Alternative trading systems shall record each item of information required to be recorded under this Rule in such manner and form as is prescribed by FINRA from time to time.
(3) Maintaining and Preserving Records
(A) Each alternative trading system shall maintain and preserve records of the information required to be recorded under this Rule for the period of time and accessibility specified in SEA Rule 17a-4(b).
(B) The records required to be maintained and preserved under this Rule may be immediately produced or reproduced on "micrographic media" as defined in SEA Rule 17a-4(f)(1)(i) or by means of "electronic storage media" as defined in SEA Rule 17a-4(f)(1)(ii) that meet the conditions set forth in SEA Rule 17a-4(f) and may be maintained and preserved for the required time in that form.
(b) Information to be Recorded.
The records required pursuant to paragraph (a) of this Rule shall contain, at a minimum, the following information for every order:
(1) Date and time (expressed in terms of hours, minutes and seconds) that the order was received;
(2) Security future product name and symbol;
(3) Number of contracts to which the order applies;
(4) An identification of the order as related to a program trade or an index arbitrage trade as defined in New York Stock Exchange Rule 132B;
(5) The designation of the order as a buy or sell order;
(6) The designation of the order as a market order, limit order, stop order, stop limit order or other type of order;
(7) Any limit or stop price prescribed by the order;
(8) The date on which the order expires and, if the time in force is less than one day, the time when the order expires;
(9) The time limit during which the order is in force;
(10) Any instructions to modify or cancel the order;
(11) Date and time (expressed in terms of hours, minutes and seconds) that the order was executed;
(12) Unit price at which the order was executed; excluding commissions, mark-ups or mark-downs;
(13) Size of the order executed;
(14) Identity of the alternative trading system's subscribers that were intermediaries or parties in the transaction; and
(15) An account identifier that relates the order back to the account owner(s).
(c) Reporting Requirements
(1) General Requirement
Alternative trading systems shall report information required to be recorded under this Rule to FINRA on the next business day following the date the alternative trading system accepted the order or executed the trade, or at such other time period as FINRA shall specify.
(2) Method of Transmitting Data
Alternative trading systems shall transmit this information in such manner and form as prescribed by FINRA.
Amended by SR-FINRA-2009-016 eff. Aug. 17, 2009.
Adopted by SR-NASD-2001-47 eff. March 31, 2003.
Selected Notice: 09-33.