The Securities and Exchange Commission has approved amendments to Financial Industry Regulatory Authority (FINRA) trade reporting rules for over-the-counter equity transactions. The amendments become effective August 3 and replace the current “market maker”-based structure with a simpler, more uniform “executing party”-based structure. “Executing party” is defined as a member firm that receives an order for handling or execution or is presented an order against its quote, does not subsequently re-route the order, and executes the transaction. For transactions between member firms, the executing party must report the trade to FINRA, and for transactions between a member firm and a non-member firm or customer, the member firm must report the trade. Unless agreed otherwise, in situations between member firms where it is unclear who is the executing party, the sell-side must report the trade (i.e., a manually negotiated transaction). The executing party reporting structure will apply to trades in National Market System stocks, OTC Equity, Direct Participation Program and PORTAL equity securities. The amendments also require member firms with reporting obligations that act in a riskless principal or agency capacity on behalf of other member firms to submit non-tape reports to identify such other member firms as parties to the transaction.