FINRA Proposes ATS Reporting Changes

The Financial Industry Regulatory Authority Dec. 8 filed a proposed rule change with the Securities and Exchange Commission to that would give it authority to exempt certain transactions by a member alternative trading system from transaction reporting obligations.

FINRA Rule 6730 generally requires FINRA members that are a party to a transaction in a TRACE-eligible security to report the transaction to TRACE—FINRA’s Trade Reporting and Compliance Engine—within the period of time prescribed in the rule. An ATS is a party to a transaction in a TRACE-eligible security occurring through its system and has a TRACE transaction reporting obligation, unless a ...