Co-authored by Tanja Samardzija
The Securities and Exchange Commission has approved a proposed rule change by the Financial Industry Regulatory Authority requiring that transactions and transaction cancellations in over-the-counter (OTC) equity securities be reported no later than 10 seconds following execution or cancellation. With respect to transactions that are reported manually, FINRA will take into consideration various factors in determining whether “reasonable justification” exists to excuse late trade reporting. In addition, new supplementary material clarifies the requirement that firms report transactions and transaction cancellations “as soon as practicable.” The rule change becomes effective on Monday, November 4, 2013.
Click here for the FINRA Regulatory Notice.