Distinctions Among the Reporting Facilities

What this video covers

• Which facilities require participation for members with an over-the-counter (OTC) reporting obligation, and why the FINRA/New York Stock Exchange (NYSE) Trade Reporting Facility is permissive rather than mandatory
• When the alternative electronic mechanism exception works, including the requirement that it cover both reporting and clearing under Financial Industry Regulatory Authority (FINRA) rules
• Where nonmember clearing organizations can access the system, and the two-organization limit at the FINRA/Nasdaq Trade Reporting Facility and OTC Reporting Facility
• The five initial and continuing participant conditions, including the application agreement, clearing arrangements, Securities and Exchange Commission (SEC) and FINRA compliance, physical security, and settlement
• How clearing broker conditions differ from participant conditions, including registered clearing agency membership, correspondent trades, and the lack of a clearing-member guarantee alternative
• How ADF fixed-line testing works, including the 100-trades-per-month connectivity threshold and the more-than-20% capacity or stress-testing trigger
• Why outsourcing trade submissions does not remove the MPID requirement, why participants must self-report noncompliance, and why odd lots remain reportable system transactions