Definitions and Cross-Cutting Concepts

What this video covers

• The statutory definition of market maker: buying and selling for the firm's own account on a regular and continuous basis, and why one-sided trading fails the test
• The three major U.S. clearing agencies (NSCC, DTC, OCC) and why transfer agents and standard broker-dealers do not qualify
• The precise meaning of "listed" as registered on a national securities exchange, versus OTC equities, and how this determines NMS stock status and trade reporting facility routing
• Why qualified OTC market maker, qualified third market maker, and qualified block positioner designations cannot be self-declared and what favorable margin and capital treatment they unlock
• What an alternative trading system (ATS) is under SEC Regulation ATS, how dark pools and electronic communication networks (ECN) fit the definition, and why an ATS is not an exchange unless it registers
• Where ATS trade reports route by default: trade reporting facility (TRF) for NMS stocks and OTC reporting facility (ORF) for OTC equities
• The strict conditions for the ATS reporting exemption, including the requirement that both subscribers be FINRA members, and how reporting duty shifts to the executing party member subscriber when the exemption applies