Trade Execution Activities

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Chapters in this video

  1. 0:00 Where trades actually happen: exchange, OTC, and ATS
  2. 1:51 Inside alternative trading systems: subscribers, not members
  3. 2:55 Dark pools and the TRF reporting catch
  4. 4:08 Trading halts and the three prohibitions
  5. 5:28 Rapid-fire exam recap

What this video covers

  • The structural differences between exchanges, over-the-counter (OTC) markets, and alternative trading systems (ATS), including price transparency and inventory models
  • Why an ATS has subscribers, not members, and why this vocabulary distinction is a recurring exam trap
  • What dark pools are: a type of ATS with no visible pre-trade quotes, designed to minimize market impact for large institutional orders
  • The post-trade reporting requirement: all ATS trades in listed securities must be reported to a FINRA Trade Reporting Facility (TRF) and published on the consolidated tape
  • The Form ATS filing rule: registration with the Securities and Exchange Commission (SEC) at least 20 days before operations begin
  • The three prohibited activities during a trading halt: executing transactions, publishing quotations, and publishing indications of interest
  • Why FINRA can halt OTC trading in National Market System (NMS) stocks when exchanges halt trading, and the typical triggers for halts

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