Trade Reporting Exemptions for Alternative Trading Systems

What this video covers

• Why FINRA staff may grant an ATS exemption only upon application, for good cause shown, and subject to investor protection and public interest considerations
• The five exemption criteria, including the requirement that both ATS subscribers be FINRA members
• The four operational facts an ATS must demonstrate, including no automatic execution, no trade account involvement, and no clearing or settlement role
• Why submitting an order is not the same as taking the affirmative step required to agree to a trade
• The written agreement, monthly volume data, and public website requirements, including the two-week and four-week posting deadlines
• Why an ATS cross of a 1,000-share buy and a 1,000-share sell reports as one 1,000-share trade instead of 2,000 shares
• Why the exemption transfers the reporting obligation to the member subscriber that satisfies the definition of executing party, while the trade remains reportable to FINRA