6431. Recording of Quotation Information
(a) Quotation Recording Requirements
(1) Subject to the terms and conditions contained herein, each OTC Market Maker that displays priced quotations (bid and/or offer) or unpriced indications of interest in OTC Equity Securities in an inter-dealer quotation system that permits quotation updates on a real-time basis shall record each item of information described in paragraph (b) of this Rule. This quote activity record must reflect all changes in an OTC Market Maker's priced quotation or quotation size displayed or unpriced indication of interest, and the time any such change was effected.
(2) Members shall record each item of information required to be recorded under this Rule in such form as is prescribed by FINRA from time to time.
(3) Maintaining and Preserving Records
(A) Each member 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(a).
(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 quotation activity record required pursuant to paragraph (a) of this Rule shall contain, at a minimum, the following information for every priced quotation (bid and/or offer) or unpriced indication of interest displayed by the member during the trading day:
(1) Submitting firm;
(2) Inter-dealer quotation system or medium;
(3) Trade date;
(4) Time quotation displayed (expressed in hours, minutes and seconds);
(5) Security name and symbol;
(6) Bid and bid quotation size (if applicable);
(7) Offer and offer quotation size (if applicable);
(8) Prevailing Inside Bid; and
(9) Prevailing Inside Offer
If no updates were entered to an OTC Market Maker's quotation or quotation size for any given trading day, the member must record the information in subparagraphs (b)(1) through (7).
(c) Quotations Not Required To Be Recorded
The recording requirements contained in paragraphs (a) and (b) of this Rule shall not apply to quotations of OTC Equity Securities that are displayed on an inter-dealer quotation system that is:
(1) operated by a registered securities association or a national securities exchange; or
(2) operated by a member of FINRA.
(d) Reporting Requirements
(1) General Requirement
Members shall report information required to be recorded under this Rule to FINRA upon its request.
(2) Method of Transmitting Data
Members shall transmit this information in such form prescribed by FINRA.
(e) Reporting Agent Agreements
(1) "Reporting Agent" shall mean a third party that enters into any agreement with a member pursuant to which such third party agrees to fulfill such member's obligations under this Rule.
(2) Any member may enter into an agreement with a Reporting Agent pursuant to which the Reporting Agent agrees to fulfill the obligations of such member under this Rule. Any such agreement shall be evidenced in writing, which shall specify the respective functions and responsibilities of each party to the agreement that are required to effect full compliance with the requirements of this Rule.
(3) All written documents evidencing an agreement described in paragraph (e)(2) shall be maintained by each party to the agreement.
(4) Each member remains responsible for compliance with the requirements of this Rule, notwithstanding the existence of an agreement described in this paragraph.
(f) Withdrawal of Quotations or Unpriced Indications of Interest
If a member knows or has reason to believe that it or its Reporting Agent is not complying with the requirements of this Rule, the member must withdraw its quotations or unpriced indications of interest until such time that the member is satisfied that its quotation data is being properly recorded and reported.
|Amended by SR-FINRA-2009-054 eff. Feb. 11, 2011.
Amended by SR-FINRA-2008-021 eff. Dec. 15, 2008.
Adopted by SR-NASD-2000-42 eff. June 27, 2003.
Selected Notices: 03-28, 08-57, 10-42.