• FINRA Announces Timetable for 30-Second Trade Reporting
  • May 11, 2010
  • Law Firm: Winston & Strawn LLP - Chicago Office
  • On April 7, 2010, the SEC published approval of a proposal by the Financial Industry Regulatory Authority (“FINRA”) to reduce the time frame for reporting over-the-counter (“OTC”) transactions in equity securities (“OTC equity transactions”) from 90 to 30 seconds after execution. This includes transactions in NMS stocks, transactions in “OTC Equity Securities” (e.g., OTC Bulletin Board and Pink Sheets securities), and secondary market transactions in non-exchange-listed direct participation program (“DPP”) securities. Trade cancellations currently subject to 90-second reporting will now be reported within 30 seconds. The SEC approval notice explained that FINRA would implement 30-second reporting in phases, with firms that use a manual process for all or substantially all OTC equity transaction reporting given additional time to comply. The approval notice also stated that FINRA would announce the implementation dates in a Regulatory Notice.