Filing Requirements for ADF Market Makers: FINRA Regulatory Notice 14-04

FINRA released a notice regarding the SEC-approved amendments to FINRA Rules 6271 ("Registration as an ADF Market Maker or ADF ECN") and 6272 ("Character of Quotations"), which govern registration in and participation on the Alternative Display Facility ("ADF").

The amendments add new requirements to the application that prospective ADF market participants must submit to FINRA prior to submitting quotes on and reporting trades to the ADF. As part of the application process, the amendments require prospective ADF market participants to submit a deposit into escrow. The amendments also set forth the framework pursuant to which an ADF market participant may earn back some or all of its ADF Deposit Amount, enumerate additional documents that a firm seeking registration as an ADF market participant must execute, and clarify the process by which a firm's registration as an ADF market participant becomes effective.

See: FINRA Regulatory Notice 14-04. Related news:SEC Approves FINRA Rule Regarding Participation on the Alternative Display Facility (January 28, 2014); FINRA Proposed Rule Change Regarding ADF Capacity Management Plan (January 3, 2014); FINRA Files Proposed Rule Change to Update Rules Governing ADF (December 20, 2013); FINRA Proposes Rule Regarding New Entrant to Alternative Display Facility (December 3, 2013).