REPORTING

Consolidated Audit Trail (CAT)

Rule 613 under the Securities Exchange Act of 1934 requires FINRA and the national securities exchanges to jointly submit a National Market System (NMS) plan detailing how they would develop, implement and maintain a consolidated audit trail that collects and accurately identifies every order, cancellation, modification and trade execution for all exchange-listed equities and options across all U.S. markets. FINRA is working with the exchanges to develop an NMS plan that meets the requirements of Rule 613.

FINRA Rule 6800 Series: Consolidated Audit Trail Compliance Rule

• Visit The Consolidated Audit Trail website (https://www.catnmsplan.com/) for more information

Trade Reporting

(New) FINRA Reminds Firms of their Obligations Regarding Trace Reporting.

FINRA has issued several notices to remind members of their obligation to have systems or processes in place to properly report transactions in TRACE-Eligible Securities. FINRA has also publishing technical specifications for reporting, which are available on FINRA’s website.

FINRA Regulatory Notice 19-30 (September 19, 2019): SEC Approves Amendments Relating to Transactions in U.S. Treasury Securities Executed to Hedge a Primary Market Transaction
FINRA Trade Reporting Notice (July 19, 2019): FINRA Reminds Firms of their Obligations Regarding TRACE Reporting
FINRA Trade Reporting Notice (January 22, 2019): TRACE Reporting of OTC Transactions in Listed Bonds
FINRA Trade Reporting Notice (January 9, 2019): US Treasury Security Auction Awards
FINRA Regulatory Notice 16-39 (October 2016): SEC Approves Rule Change to Require Reporting of Transactions in U.S. Treasury Securities to the Trade Reporting and Compliance Engine (TRACE)

 

Disclosure of Order Handling Information

The Commission is extending the compliance date for the recently adopted amendments to Rule 606 of Regulation National Market System (“Regulation NMS”) under the Securities Exchange Act of 1934 (“Exchange Act”), which require additional disclosures by broker-dealers to customers concerning the handling of customer orders. Specifically, the Commission is extending the compliance date for the recently adopted amendments to Rule 606. Following September 30, 2019, broker-dealers must begin to collect the information required by Rules 606(a) and 606(b) as amended. The compliance date remains May 20, 2019 for the amendments to Rule 605. The Commission is extending the compliance date for the recently adopted amendments to Rule 606 in order to give broker-dealers additional time to develop, program, and test for compliance with the new and amended requirements of the rule.

Securities and Exchange Commission Release No. 34-85714 (April 24, 2019): Disclosure of Order Handling Information

 

FINRA Reminds Firms of Their Obligations Regarding Transactions in OTC Equity Securities Quoted Pursuant to a Submitted Form 211

In consultation with SEC staff, FINRA is reminding members of legal obligations that apply when initiating a quote in an over-the-counter (OTC) security in addition to filing a Form 211.

FINRA Regulatory Notice 18-32 (September 24, 2018): FINRA Reminds Firms of their Obligations Regarding Transactions in OTC Equity Securities Quoted Pursuant to a Submitted Form 211

 

FINRA Reminds Firms of their Obligations when Effecting OTC Trades in Equity Securities on a Net Basis

FINRA is issuing this Notice to remind firms of their obligations under the FINRA trade reporting rules and other applicable FINRA and SEC rules when effecting over-the-counter (OTC) trades in equity securities on a “net” basis.

FINRA Regulatory Notice 18-29 (September 12, 2018): FINRA Reminds Firms of their Obligations when Effecting OTC Trades in Equity Securities on a Net Basis