The Reporting Obligation and Which Facility Takes the Trade

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Chapters in this video

  1. 0:00 Trade reporting decision framework
  2. 1:08 Exchange determination and options
  3. 2:19 NMS stock facility decision matrix
  4. 3:59 OTC Reporting Facility security buckets
  5. 5:12 NSCC eligibility and last sale
  6. 6:07 FINRA publication and ATS data
  7. 7:03 Rapid-fire exam recap

What this video covers

  • The reporting obligation for off-exchange NMS stock trades, and why the exchange, not the member, decides whether a trade was on or through an exchange
  • Why an option is never an NMS stock for these equity trade reporting rules
  • How to route an off-exchange NMS stock trade to the ADF, the FINRA/Nasdaq Trade Reporting Facility, or the FINRA/New York Stock Exchange (NYSE) Trade Reporting Facility
  • Why the ADF is the default destination unless another Securities and Exchange Commission (SEC)-designated facility accepts the report, and why Trade Reporting Facility use is permissive
  • Which transactions belong at the ORF, including OTC equity securities, restricted equity securities, and secondary market transactions in non-exchange-listed direct participation program (DPP) securities
  • Why an OTC equity security and a restricted equity security are separate, mutually exclusive categories
  • What happens when a security is not eligible for NSCC clearance, including the loss of comparison but continued last sale reporting, and what FINRA publishes while excluding alternative trading system (ATS) data

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