The guidelines contained in this FAQ relate to the notification of over-the-counter transactions in shares to a trade reporting facility (TRF), the alternative Display Facility (ADF) or the OTC Reporting Facility (ORF). These guidelines relate only to the rules relating to the commercial report, as defined in FAQ 100.2 below, and do not relate to other obligations of members under the Finra rules or federal securities laws, including, but not limited to, registration obligations under SEC Rule 17a-3. Although Floor Broker has placed trading, it must abandon the transaction and register it as if Broker B had done the trading. The transaction is recorded as if Broker B had traded, although Floor Broker A conducted the trading. A502.2: No Neither the transfer of shares from BD1 to the ETF, nor the transfer of ETF production units from etF to BD1 are subject to declaration. See rules 6282 (f) (1), 6380A (e) (1), 6380B (e) (1) and 6622 (e) (1). See also regulatory communication 11-40 (August 2011). Transfers in this example (from BD1 to ETF and ETF to BD1) are not subject to reporting, whether BD1 acts as a lead investor, agent or risk-free investor during the transfer. Acceptance of abandonment is sometimes referred to as give-in.
Once a trade is actually executed, it can be called « give-in. » However, the use of the term « give » is much rarer. A200.8: FINRA/NASDAQ TRF Carteret and FINRA/NASDAQ TRF Chicago are separate and different facilities. As a result, BD1 and BD2 must update their existing agreement if they provide that they apply to FINRA/Nasdaq TRF Chicago. See the technical opinion of July 31, 2018 (participation in the new FINRA/Nasdaq trade reporting mechanism). A200.4: An implementation agreement is a private contractual agreement recognized by FINRA for commercial communication purposes, but does not exempt the member from its trade reporting obligations if the rapporteur party does not report in accordance with the applicable rules. It is the responsibility of the member and the member submitting the business report to FINRA to ensure that the information provided complies with all applicable rules and rules. See rules 6282 (h) 6380A (h), 6380B (g) and 6622 (h). Any member who allows another member to report transactions on his or her behalf must set up, maintain and enforce control procedures that allow him to find that the other member declares, in accordance with all applicable rules. See 98-96 (December 1998). Q105.5: Trade Communication 9/23/2011 reminds companies of their business reporting obligations regarding the sales of low-value over-the-counter share customers.
Does this notification apply when an entity withdraws a client`s securities from the account as soon as they have been revoked by the SEC or terminated as a result of a bankruptcy proceeding or a final liquidation plan, and are companies required to obtain over-the-counter symbols in such cases? A502.1: No, companies are not required to report the transfer of shares solely for the purpose of creating or withdrawing an instrument such as an AS or ETF, which otherwise displays or tracks ownership of the transferred underlying securities. See rules 6282 (f) (1), 6380A (e) (1), 6380B (e) (1) and 6622 (e) (1). See also regulatory communication 11-40 (August 2011). A408.5: When notifying trades based on an earlier reference price, companies should use the MODIficator PRP if the reference price occurred on the day of execution (for example. B, the opening price of a trade is executed at the earliest on the day of execution (see FAQ 408.1) or a trade to give the customer a better price on the day of execution (see FAQ 309.1).