Books-and-Records and Reporting-Rule Violations
Chapters in this video
- 0:00 TRF and ORF rule violations: the 10-second window
- 1:12 Three independent violation categories: failure, late, inaccurate
- 3:18 Locked-in versus unlocked trade processing
- 4:43 Independent clearing and reporting rule regimes
- 5:52 Facility access termination: ADF, TRACE, and ORF
- 6:56 Audit trails and books defense for the CEO certification
- 8:28 Rapid-fire exam recap
What this video covers
- The three independent violation categories across the Trade Reporting Facility (TRF) and the Over-the-Counter Reporting Facility (ORF): failure to report, late reports, and inaccurate reports, and how one trade report can produce multiple violations
- The 10-second timely reporting window during normal market hours, and what triggers a late-report violation
- Locked-in reports (automatic matching from exchange or alternative trading system rulebooks) versus unlocked reports (requiring contra-party acceptance, with rejection triggering dispute resolution or DK handling)
- Why a rejected unlocked report remains incomplete, and why the trade-report obligation persists until resolved, accepted, or DK'd under inter-member comparison rules
- The complete independence of trade reporting rules, comparison and confirmation rules, and clearance and settlement rules, and why a trade can settle perfectly while still carrying a reporting violation
- Facility-specific termination authority under the Alternative Display Facility (ADF), Trade Reporting and Compliance Engine (TRACE), and ORF, and why termination at one facility does not cross to others
- How consolidated audit trail (CAT) data, order tickets, modifier patterns, and reject or cancel rates form the books-and-records defense that supports the chief executive officer's annual certification
Read the full lesson, free
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