SEC Approves Amendments to Trade Reporting Requirements for Restricted Equity Securities and Revisions to OTC Equity Security Definition
Co-authored by Louis Froelich
The Securities and Exchange Commission has approved several Financial Industry Regulatory Authority amendments to the reporting provisions regarding the OTC Reporting Facility (ORF). Effective June 28, firms are required to report restricted equity securities transactions traded pursuant to SEC Rule 144A to ORF by 8 p.m. Eastern Time. In addition, the amendments change the definition of “OTC Equity Security” (also effective June 28) to align the term more closely with SEC rule terminology and improve consistency across the FINRA rulebook. FINRA also has amended the ORF rules to add an exception to the reporting requirements for OTC Equity Securities transactions reported on or through an exchange.
Click here to read FINRA Regulatory Notice 10-26.
