• FINRA Proposes Shortening Trade Reporting Timeframe to 30 Seconds
  • December 16, 2009
  • Law Firm: Winston & Strawn LLP - Chicago Office
  • The Financial Industry Regulatory Authority (“FINRA”) is proposing to amend its reporting rules to require that over-the-counter (“OTC”) equity transactions be reported within 30 seconds of execution. OTC equity transactions are: (1) transactions in NMS stocks that are not effected on an exchange and are reported through FINRA’s Alternative Display Facility (“ADF”) or a FINRA Trade Reporting Facility (“TRF”); and (2) transactions in “OTC Equity Securities” (i.e., OTC Bulletin Board and Pink Sheets securities), which are reported through the FINRA OTC Reporting Facility (“ORF”). FINRA also is proposing to require, for the first time, real-time reporting of secondary market transactions in unlisted direct participation program (“DPP”) securities, as well as certain conforming changes to ORF reporting rules.