The Financial Industry Regulatory Authority filed a rule proposal with the Securities and Exchange Commission to require alternative trading systems (ATS) to report to FINRA volume information in securities (both equity and debt) subject to FINRA trade reporting obligations (e.g., any National Market System (NMS) stock, over-the-counter (OTC) equity security or any debt security subject to FINRA’s Trade Reporting and Compliance Engine rules). Specifically, each ATS will be required to report weekly to FINRA the volume and number of trades handled by the ATS. The proposed rule would require that this information be reported to FINRA on a security-by-security basis within seven business days after the end of each calendar week. FINRA proposes to publish the reported information on its website regarding NMS stocks in the S&P 500 Index or the Russell 1000 Index and certain exchange traded products on a two-week delayed basis. All other NMS stocks and OTC equity securities subject to FINRA trade reporting requirements would be published on a four-week delayed basis. Although the proposed rule would impose new weekly reporting obligations, each ATS must already maintain this information pursuant to Regulation ATS. In addition, the proposal would require that each ATS use a single, unique market participant identifier when reporting the information to FINRA.
Click here to read the Rule Proposal.