Registration as an ADF Market Maker or ADF ECN

What this video covers

• The two ADF Market Participant routes: a Registered Reporting ADF Market Maker and a Registered Reporting ADF electronic communications network (ECN), including an alternative trading system (ATS) displaying orders on the facility
• The three separate registration hurdles: the eight-part application, Certification Record, and Participant Agreement
• All eight application commitments, including security types, good standing, net capital, the two-year term, the 75% volume promise, monthly projections, five equal escrow installments, and ADF Deposit Terms
• What qualifies as a Consolidated Quotation System (CQS) security, including common stocks, preferred stocks, long-term warrants, and rights tied to eligible securities
• The conditions for effective registration, including FINRA approval in the designated security types, an executed Certification Record, and both parties executing the application and Participant Agreement
• The six-month Participant Agreement lead time, FINRA's ability to designate a shorter period, and the requirement for an escrow bank mutually acceptable to the member and FINRA
• The $250,000 standard deposit, $500,000 accelerated deposit, 90-calendar-day acceleration rule, 75% monthly volume test, one-fifth forfeiture, Securities Information Processor (SIP) data revenue earnback, and four-fifths cap