Which Party Reports, and What the Report Contains

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What this video covers

  • How the single tape-report rule assigns reporting responsibility between two members, and between a member and a customer or non-member
  • The three conditions for being the executing party: receiving or being presented the order, not subsequently rerouting it, and executing the transaction
  • Why rerouting an order disqualifies the original member, and why the executing party is not automatically the seller
  • How the sell-side tiebreak works when both members satisfy the executing-party definition, including the requirement for contemporaneous documentation by the sell-side member
  • How a give-up agreement can let another member submit and lock in a trade, while the member with the reporting obligation remains responsible and both members share responsibility for report accuracy
  • Why the basic reporting-information lists contain six items for the ADF and TRFs but five for the ORF, including the difference between a basic list and an actual submission with military time and a Consolidated Audit Trail (CAT) order identifier
  • How to calculate the clean reported price by excluding commissions, markups, markdowns, and service charges, and which market factors support a principal transaction's price

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This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 57 course also includes adaptive practice questions and spaced-repetition flashcards, available in Free Beta.

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