Co-authored by Tanja Samardzija.

The Financial Industry Regulatory Authority has filed a proposed rule change requiring trades and trade cancellations in over-the counter (OTC) transactions in National Market System stocks and OTC equity securities (as defined in FINRA Rule 6420) that take place during normal market hours to be reported “as soon as practicable,” but no later than 10 seconds following execution or cancellation. Currently, FINRA trade reporting rules require members to report such trades and same-day trade cancellations within 30 seconds. FINRA also is proposing to adopt supplementary material to clarify the “as soon as practicable” requirement. In order to allow time for necessary systems changes, the proposed implementation date is between 120 and 180 days following the date of approval by the Securities and Exchange Commission. The SEC is accepting comments on FINRA’s proposed rule change on or before March 5, 2013. All submissions should refer to File No. SR–FINRA–2013–013.

Click here for the FINRA rule filing.