On November 21, the Financial Industry Regulatory Authority released Regulatory Notice 14-53 to remind FINRA member firms of their Trade Reporting and Compliance Engine (TRACE) trade reporting obligations for transactions in TRACE-eligible securities occurring on or through an Alternative Trading System (ATS).
Specifically, the notice highlights FINRA Rule 6730’s requirement that each FINRA member firm that is a “party to a transaction” in a TRACE-eligible security report the transaction to TRACE within the prescribed period of time (generally within 15 minutes). The notice emphasizes the importance of having all applicable parties (including ATSs and their member subscribers) report the transaction in a consistent, complete, accurate and timely manner. The notice also provides examples of how the reporting requirements ought to be followed for transactions executed on or through an ATS.
Click here to read FINRA Regulatory Notice 14-53.