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6170. Primary and Additional MPIDs for Alternative Display Facility Participants

This version is valid from Jan 17 2014 through Feb 1 2015.
Amendments have been announced but are not yet effective. To view other versions open the versions tab on the right.

(a) Terms used in this Rule 6170 shall have the same meaning as defined in Rule 6220.
(b) The first Market Participant Identifier ("MPID") issued to a FINRA Market Participant shall be referred to as the FINRA Market Participant's "Primary MPID." A Registered Reporting ADF ECN may request the use of Additional MPIDs for displaying quotes/orders and reporting trades through TRACS for any ADF-Eligible Security. A Registered Reporting ADF ECN that ceases to meet the obligations appurtenant to its Primary MPID in any security shall not be permitted to use Additional MPIDs for any purpose in that security.
(c) A Registered Reporting ADF ECN that posts a quotation through either a Primary MPID or Additional MPID and reports a trade to TRACS as a result of such a posted quotation must utilize the corresponding Primary MPID or Additional MPID for reporting purposes through which the quotation was originally posted (i.e., Registered Reporting ADF ECNs must use the same MPID for TRACS trade reporting as was used for ADF quotation posting).

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.01 FINRA considers the issuance of, the display of, and the trade reporting with Additional MPIDs to be a privilege and not a right. FINRA has developed the following method for allocating the privilege of receiving, displaying, and trade reporting with Additional MPIDs in an orderly, predictable, and fair manner. While FINRA does not intend to place a numerical limit on the number of Additional MPIDs it may grant to Registered Reporting ADF ECNs, given the agent business model of ECNs, FINRA does not anticipate the granting of many additional MPIDs to Registered Reporting ADF ECNs.

.02 FINRA will automatically designate a Registered Reporting ADF ECN's first MPID as a "Primary MPID." Additional MPIDs will be designated as such. Registered Reporting ADF ECNs are required to use their Primary MPID in accordance with the requirements of this Rule as well as all existing requirements for the use of MPIDs in FINRA systems and under FINRA rules. Each of an ECN's MPID will be subject to the requirements of Rule 6279.

.03 If it is determined that one or more Additional MPIDs are being used improperly, FINRA staff retains full discretion to limit or withdraw its grant of the Additional MPID(s) for all purposes for all securities. In addition, if a Registered Reporting ADF ECN no longer fulfills the conditions appurtenant to its Primary MPID (e.g., by being placed into an unexcused withdrawal), it may not use an Additional MPID for any purpose in that security.

.04 The first priority of FINRA's method for allocating the privilege of displaying and trade reporting with Additional MPIDs is that each Registered Reporting ADF ECN should be permitted to display quotations and report trades under a Primary MPID before any is permitted to display additional quotations under and report trades with Additional MPIDs. If all requests for Primary MPIDs have been satisfied, FINRA will then register Additional MPIDs on a first-come-first-served basis, consistent with the procedures listed below.

.05 A Registered Reporting ADF ECN shall contact FINRA in writing setting forth the bona fide business and/or regulatory reasons for requesting an Additional MPID. FINRA will consider the business and/or regulatory reasons demonstrated by the Registered Reporting ADF ECN and promptly respond to the Registered Reporting ADF ECN. If an Additional MPID is granted, it will be subject to the same requirements applicable to a Primary MPID. FINRA staff retains full discretion to limit or withdraw the Additional MPID privileges of a Registered Reporting ADF ECN.

Amended by SR-FINRA-2013-042 eff. Jan. 17, 2014.
Amended by SR-FINRA-2013-008 eff. Jan. 25, 2013.
Amended by SR-FINRA-2011-074 eff. Jan. 27, 2012.
Amended by SR-FINRA-2011-003 eff. Jan. 28, 2011.
Amended by SR-FINRA-2009-094 eff. Jan. 29, 2010.
Amended by SR-FINRA-2008-068 eff. Jan. 30, 2009.
Amended by SR-FINRA-2008-021 eff. Dec. 15, 2008.
Adopted by SR-NASD-2006-096 eff. Aug. 8, 2006.

Selected Notice: 08-57, 14-07.

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