The Use of Market Participant Identifiers (MPIDs)

What this video covers

• What a market participant identifier (MPID) is, how FINRA issues it, and why an Alternative Display Facility (ADF) Participant must obtain one before trade input
• Why an MPID has two jobs, trade reporting and audit trail purposes, and why outsourcing reporting to a third party does not remove the member's duty
• When a member wanting multiple MPIDs for quoting and trading over-the-counter (OTC) equity securities or reporting to the OTC Reporting Facility (ORF) must submit a written request to FINRA Market Operations and obtain approval
• Why a member must use the same MPID for a quotation and for reporting a trade that results from that quotation
• How the alternative trading system (ATS) definition works, including its limits on subscriber conduct rules and discipline, and why each ATS needs a separate, exclusive MPID
• The ATS split-destination exception, where one MPID is used for the Trade Reporting and Compliance Engine (TRACE) and another is used for equity facilities such as the ADF, ORF, or a trade reporting facility (TRF)
• When FINRA can revoke a multiple MPID privilege because the use is detrimental to the marketplace or differs from the member's stated purpose