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4552. Alternative Trading Systems — Trading Information for Securities Executed Within the Alternative Trading System

(a) Within seven business days after the end of each week, each member that operates an ATS that has filed a Form ATS with the SEC shall report to FINRA, in such format as FINRA may require, the aggregate weekly Trading Information for each NMS stock and OTC Equity Security executed within each such ATS operated by the member during the previous week.
(b) FINRA will publish on its public web site the Trading Information for equity securities as reported by each ATS on the following timeframes:
(1) no earlier than two weeks following the end of the Trading Information week, Trading Information regarding NMS stocks in Tier 1 of the NMS Plan to Address Extraordinary Market Volatility; and
(2) no earlier than four weeks following the end of the Trading Information week, Trading Information regarding (A) NMS stocks that are subject to FINRA trade reporting requirements and are not in Tier 1 of the NMS Plan to Address Extraordinary Market Volatility and (B) OTC Equity Securities.
(c) When calculating and reporting the volume of securities traded and the number of trades, an ATS shall include only those trades executed within the ATS. If two orders are crossed by the ATS, the volume shall include only the number of shares crossed as a single trade (e.g., crossing a buy order of 1,000 shares with a sell order of 1,000 shares would be calculated as a single trade of 1,000 shares of volume).
(d) Definitions
For purposes of this Rule, the term:
(1) "ATS" has the same meaning as the term “alternative trading system” as that term is defined in Rule 300 of SEC Regulation ATS;
(2) "NMS stock" has the same meaning as that term is defined in Rule 600(b)(47) of SEC Regulation NMS;
(3) "OTC Equity Security" has the same meaning as that term is defined in Rule 6420; and
(4) "Trading Information" includes:
(A) the number of shares of each NMS stock or OTC Equity Security executed within an ATS; and
(B) the number of trades in a security executed within an ATS.

• • • Supplementary Material: --------------

.01 For purposes of reporting volume under this rule, a trade is considered to be executed within an ATS if the ATS (i) executes the trade; (ii) is considered the "executing party" to the trade under FINRA rules; or (iii) otherwise matches orders constituting the trade in a manner as contemplated by SEA Rule 3b-16 or SEC Regulation ATS. This would include, but not be limited to: any trade executed as a result of the ATS bringing together the purchaser and seller on or through its systems; any trade executed by the ATS's subscribers where the subscribers used the ATS to negotiate the trade, even if the ATS did not itself execute the trade; or any trade in which the ATS takes either side of a trade for clearing or settlement or in any other way inserts itself into a trade (e.g., exchanging securities or funds on behalf of one or both subscribers taking part in the trade). If an ATS routes an order to another member firm or other execution venue for handling or execution where that initial order matches against interest resident at the other venue, then the ATS would not be considered the executing party and would not include such volume for reporting purposes. A trade continues to be considered executed "within an ATS" for purposes of reporting volume under this rule, even if the ATS has been granted an exemption to its trade reporting obligations under Rule 6183, 6625 or 6731.

Adopted by SR-FINRA-2013-042 and amended by SR-FINRA-2014-017 eff. May 12, 2014.

Selected Notice: 14-07

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