matching scenario): Member BD1 matches as agent orders from members BD2 and BD3 and executes the trade OTC. Which member is the executing party for purposes of reporting the trade to FINRA?
A205.3: In this example, BD1 is the executing party and has the trade reporting obligation. See also Section 307 (Reporting Matches of Broker-Dealer Orders by a Member (Including an ATS or ECN)). Q205.4 (member presented order against its quote): Member BD1 displays a quote (or order) and member BD2 presents an order to BD1 at BD1’s quoted price. BD1 does not subsequently route BD2’s order and executes the trade OTC. Which member is the executing party for purposes of reporting the trade to FINRA? A205.4: In this example, BD1 is the executing party and has the trade reporting obligation, because BD1 was presented an order against its quote (or displayed order), did not route the order and executed the trade at BD1’s quoted price. This guidance applies irrespective of the mechanism used by BD2 to access BD1’s quote (e.g., electronically, via the telephone, etc.). Q205.5 (member asked to provide quote): Member BD1 requests a quote from member BD2, receives a quote and agrees to trade wit
Related Questions
- Member BD1 matches as agent a buy order from member BD2 and a sell order for the same quantity of shares at the same price from member BD3. How should this transaction be reported?
- Member BD1 matches as agent a buy order from member BD2 and a sell order for the same quantity of shares at the same price from a customer. How should this transaction be reported?
- Can a broker-dealer (BD1) trade as agent for another broker-dealer (BD2)?
