FINRA Rule on Branch Reporting and Two FINRA Rules on Trade Reporting

The SEC issued approved two FINRA Rule changes and FINRA reproposed one other.

• The SEC approved the FINRA-proposed rule change to amend the Uniform Branch Office Registration Form ("Form BR") which is used by firms to register their branch office with FINRA, the NYSE, and participating states via the Central Registration Depository.
• FINRA filed Amendment No. 1 and the SEC granted accelerated approval of the proposed amendments to the rules governing the reporting of: (i) over-the-counter ("OTC") transactions in equity securities to the FINRA facilities, and (ii) orders in NMS stocks and OTC Equity Securities to the Order Audit Trail System ("OATS").
  • The proposed amendments relate to reporting (i) additional time fields for specified trades, (ii) execution time in milliseconds, (iii) reversals, (iv) trades executed on non-business days and trades that are more than one year old, and (v) "step-outs." Additionally, FINRA proposed changes in the processing of trades that are submitted to a FINRA facility for clearing as well as technical changes to the rules relating to the OTC Reporting Facility, among other amendments.
• FINRA filed Amendment No. 1 to the proposed rule change to clarify the classification and reporting of certain securities to FINRA.
  • The proposal includes an interpretation regarding the classification and reporting of two categories of hybrid securities (capital trust securities and certain depositary shares) to clarify the appropriate trade-reporting facility to which such securities should be reported. Additionally, FINRA proposed a policy to address the treatment of securities that currently are being reported to a facility that is not the designed facility under this interpretation.

See: Order Approving Form BR Rule Change; Order Approving Amendment No. 1 to Rules Governing Reporting of OTC Transactions and OATs; Notice of Filing Amendment No. 1 to Proposed Rule Clarifying Classification and Reporting of Certain Securities to FINRA.Related news:SEC Extends Review Period for Form BR Amendments (January 24, 2014); FINRA Proposes Rule Relating to OTC Equity Trade Reporting and OATS Reporting (November 12, 2013); FINRA Proposes Rule to Amend Uniform Branch Office Registration Form (Form BR) (November 25, 2013); FINRA-Proposed Rule Change to Clarify the Classification and Reporting of Certain Securities (September 17, 2013).