Effectiveness of Amendments to FINRA’s Trade Reporting Rules for OTC Equities (SEC Release # 34-65025)
August 9, 2011
The SEC declared immediately effective a FINRA proposal to change its rules regarding trade reporting of certain transactions in OTC equities. The amendments make two changes: (1) clarify the scope of an exception for securities that are part of a secondary distribution by tying the term "distribution" to its definition in Rule 100 of Regulation M and providing guidance on what an "unregistered secondary distribution is"; and (2) exclude from trade reporting requirements transfers of equities for the purpose of creating ADRs and ETFs.
Cross References
- SR-FINRA-2011-027
- FINRA Rules 6282, 6380A, 6380B, 6622
- Regulation M, Rule 100