A204.5: According to FINRA rules, the „exporting party” is defined as the member who receives a processing or execution order or receives an order against its offer, then does not hijack the order and executes the transaction. In the case of transactions between two members in respect of which both members could reasonably have asserted that they met the definition of the performing party (e.g. B transactions negotiated manually by telephone), the member representing the selling party must report the transaction to FINRA, unless the parties agree otherwise and the member representing the selling party simultaneously documents this agreement. See Rules 6282 (b), 6380A (b), 6380B (b) and 6622 (b); See also Regulatory Notice 09-08 (January 2009). Members and, where applicable, their respective clearing houses must execute an agreement (PDF 25KB) in accordance with FINRA, which allows the transfer of transaction fees through the FINRA facility. Such an agreement must be executed and submitted to FINRA before members can pay a transaction fee. Members who report trades for publication to a FINRA facility that does not subject trades to clearing must make other arrangements to clear those trades (e.g. B through Qualified Services Representation Agreements (QSRs) with NSCC). Q205.8: BD1 Member and BD2 Member manually negotiate an OVER-the-counter trade over the phone.
Since both members could reasonably have asserted that as a member representing the selling party, they meet the definition of the exporting party, BD2 is subject to the commercial reporting obligation under FINRA rules. If BD2 notifies the trade, does the „documented agreement at the same time” requirement apply? A201.2: Yes. In this case, BD2 may „give up” for the purposes of the tape report or report on behalf of BD1 whether there is a valid waiver agreement between BD1 and BD2. See FAQ 200.1. BD1 and BD3 must be identified on the tape report as the parties to the trade. A304.5: Companies should refer to regulatory notice 18-29 (September 2018) www.finra.org/industry/notices/18-29 for information on their obligations with respect to OTC transactions in net equity securities. However, if XYZ brokerage has a QSR agreement with abc brokerage, XYZ brokerage can send ABC Trades to its clearing house on behalf of brokerage (and abc brokerage ABC can do the same for XYZ brokerage). Each of the dealer broker`s clearing companies has agreed to clear trades in accordance with the agreement. A Qualified Special Agent (QSR) agreement is an agreement entered into by the National Securities Clearing Corporation (NSCC) that allows a dealer-dealer to send a trade to a clearing house on behalf of another broker. Q404.1: BD1 Member executes multiple trades to fulfill a sales order and then trades with the client at a price corresponding to the volume-weighted average cost of the original trades, plus a net difference according to a net trading contract with its client.
How should BD1 report business with its customer? A205.13: No. The use of the trade comparison and acceptance functionality (see section 103) would not meet the „documented at the same time” requirement for the purpose of transferring the obligation to report transactions in accordance with FINRA rules. All Nasdaq agreements and forms are in Portable Document format (. PDF FORMAT) or web. To view and print PDF documents, you need Adobe Reader. Q200.7: BD1 Member has waiver agreements with BD2 Member and BD3 Member. BD2 and BD3 carry out a trade by mutual agreement. Can BD1 report trade between BD2 and BD3? Q200.6: BD1 Member, as an agent, compares a BD2 member agent with a BD3 member sales order, and BD1 has waiver agreements with BD2 and BD3. . .