FINRA Proposes Rule Amendment to Allow Submission of OTC ''Clearing-Only, Non-Regulatory'' Reports

FINRA proposed amendments to reporting rules concerning over-the-counter transactions in equity securities to FINRA Facilities to (i) allow the submission of "clearing-only, non-regulatory reports" relating to previously executed and reported transactions and (ii) exempt such reports from certain reporting requirements under FINRA rules.

FINRA proposed adopting a new subparagraph (4) under FINRA Rules 7130(g), 7230A(i), 7230B(h) and 7330(h) ("Submission of Non-Tape Reports Associated with Previously Executed Trades") to create a uniquely identified category of submissions to FINRA that are "clearing-only, non-regulatory reports," in which the transaction is submitted solely to facilitate clearing and not for dissemination or regulatory purposes. FINRA noted that alternative trading systems would be permitted to use their main broker-dealer market participant identifier on this limited subset of reports.

FINRA proposed that the operative date be in February 2016.