FINRA Quotation and Trading Facility Rules

What this video covers

• The critical distinction between quotation-and-trade-reporting rules (trading mechanics) and conduct rules (ethics and customer dealings), and how the exam baits you into confusing them
• Which reporting facility handles which security type: the Over-the-Counter Reporting Facility (ORF) for unlisted OTC equities and the Trade Reporting and Compliance Engine (TRACE) for fixed-income bonds
• Market maker registration and quotation obligations for OTC equities, and why FINRA imposes strict guardrails on unlisted stock pricing
• The prohibition against order entry and execution practices that manipulate the market or disadvantage customers
• The coordinated trading halt rule: when an exchange halts trading in a security, FINRA simultaneously halts OTC trading in that same security
• The ex-dividend date adjustment rule for open orders below the market: buy limit orders, sell stop orders, and stop-limit orders below the market are reduced by the dividend amount
• The "do not reduce" (DNR) exemption and why sell limit orders above the market are never reduced on the ex-dividend date