6920. Transaction Reporting
This rule is no longer applicable. NASD Rule 6920 has been superseded by FINRA Rule 6643. Please consult the appropriate FINRA Rule.
(a) When and How Transactions are Reported
(1) Reports of secondary market transactions in direct participation programs shall be transmitted to the OTC Reporting Facility on the next business day ("T+1") after the date of execution between 8:00 a.m. and 1:30 p.m. Eastern Time, be designated "as of" trades to denote their execution on a prior day, and be accompanied by the time of execution. The party responsible for reporting on T+1, the trade details to be reported, and the applicable procedures shall be governed, respectively, by paragraphs (b), (c), and (d) below. Member firms that have the operational capability to report transactions within 90 seconds of execution, between the hours of 8:00 a.m. and 8:00 p.m. Eastern Time, may do so at their option. If a firm chooses this option, it need not report the same transaction(s) on T+1 as prescribed above.
(2) All members shall report to the Market Regulation Department in Rockville, Maryland on Form T, reports of transactions in DPPs that were not transmitted to the OTC Reporting Facility, for whatever reason, either on the trade date or the next business day. Form T shall be used exclusively as a back-up mode whenever electronic entry of trade data is not feasible due to system malfunctions or other unusual conditions.
(3) A pattern or practice of late reporting without exceptional circumstances may be considered conduct inconsistent with high standards of commercial honor and just and equitable principles of trade, in violation of Rule 2110.
(b) Which Party Reports Transactions
(1) In transactions between two members, only the member representing the sell side shall report.
(2) In transactions between a member and a customer, the member shall report.
(3) In transactions conducted through a Reporting ECN (as defined in Rule 6110), the Reporting ECN shall ensure that the transactions are reported in accordance with Rule 6130(c); provided that for purposes of Rule 6130(c)(5) (B) and (C), the party with the reporting obligation shall be as set forth in Rule 6130(c)(3) and the term "Reporting Order Entry Firm" as used in such rule shall be construed to refer to any member.
(c) Information To Be Reported
Each transaction report shall contain the following information:
(1) A symbol indicating whether the transaction is a buy, sell, or cross;
(2) Number of units;
(3) Symbol of the DPP;
(4) Price of the transaction as required by paragraph (d) below;
(5) A symbol indicating whether the transaction is as principal, riskless principal, or agent;
(6) Time of execution; and
(7) Contra broker.
(d) Procedures for Reporting Price and Volume
Members that are required to report pursuant to paragraph (b) above shall transmit transaction reports for all purchases and sales in DPPs in the following manner:
(1) For agency transactions, report the number of units and the price excluding any commission or service charge.
(2) For dual agency transactions, report the number of units only once, and report the price excluding any commission or service charge.
(3) For principal transactions, except as provided under paragraph (4) below, report each purchase and sale transaction separately and report the number of units and the price. For principal transactions that are executed at a price which includes a mark-up, markdown or service charge, the price reported shall exclude the mark-up, mark-down or service charge. Such reported price shall be reasonably related to the prevailing market, taking into such consideration all relevant circumstances including, but not limited to, market conditions with respect to the DPP, the number of units involved in the transaction, the published bids and offers with size displayed in any quotation system at the time of the execution (including the reporting firm's own quotation), the cost of execution and the expenses involved in clearing the transaction.
(4) For riskless principal transactions, report as one transaction in the same manner as an agency transaction, excluding the mark-up, mark-down, or service charge.
(e) Transactions Not Required To Be Reported
The following transactions are not required to be reported under the foregoing procedures:
(1) Transactions made in reliance on Section 4(2) of the Securities Act of 1933;
(2) Transactions where the buyer and seller have agreed to trade at a price substantially unrelated to the current market for the DPP, e.g., to enable the seller to make a gift; and
(3) Transactions executed on a national securities exchange.
Amended by SR-NASD-2006-120 eff. Dec. 4, 2006.
Amended by SR-NASD-2005-087 eff. Aug. 1, 2006.
Amended by SR-NASD-2004-076 eff. May 5, 2004.
Amended by SR-NASD-2004-034 eff. Feb. 25, 2004.
Amended by SR-NASD-2003-098 eff. Sept. 4, 2003.
Amended by SR-NASD-2001-36 eff. July 6, 2001.