The Financial Industry Regulatory Authority (FINRA) received approval for a proposal to amend FINRA rules relating to trade reporting for certain “OTC Equity” transactions that are reported to a FINRA facility. The changes will apply to transactions in NMS stocks effected otherwise than on an exchange which are reported through either the Alternative Display Facility or a FINRA Trade Reporting Facility and to transactions in OTC Bulletin Board, Pink Sheet, Direct Participation Program or PORTAL equity securities which are reported through FINRA’s OTC Reporting Facility. The amendments make two significant changes to the current trade reporting scheme. First, the current market-maker based trade reporting framework will be replaced with rules that generally impose trade reporting responsibilities on the “executing party” to an OTC transaction. Second, the amendments require member firms that are submitting OTC trade reports in a riskless principal or agency capacity to submit “non-tape” reports, as necessary, to ensure that all parties to a trade are identified properly. Currently, such “non-tape” reports are voluntary. These requirements would not apply to transactions that are executed on and reported through an exchange. The rule changes will become effective in approximately six months.