How will a receiving firm know if a firm submitting orders to it does not meet the definition of an OATS Reporting Member under NASD Rule 7410?
One of the criteria for a firm to qualify for exclusion from the definition of an OATS Reporting Member is that the member have a written agreement in place with the receiving firm to which it sends its order flow. Therefore, a written agreement must be in place between the sending and receiving firm before the sending firm can qualify for the exclusion provided for by NASD Rule 7410(n). 8. One of the criteria necessary to qualify for exclusion from the definition of an OATS Reporting Member is that the firm immediately route all of its orders to a single Reporting Member (Receiving Reporting Member). FINRA has further indicated that any delay in the routing of an order due to system problems or other reasons would require the member to report OATS data. Does this mean if my firm sends all its orders to our clearing firm and the clearing firm experiences a temporary system problem, my firm loses its status as a non-reporting member and must begin reporting OATS data? If so, is my firm
