FINRA: Proposed Rule Change for Reporting OTC Equity Transactions

FINRA has filed with the SEC a proposed rule change to amend FINRA trade reporting rules. The amendment would require that members report OTC transactions executed during business hours (as defined in FINRA provisions) in NMS stocks and OTC Equity Securities (and cancellations of such transactions) to FINRA as soon as practicable following execution, but not later than 10 seconds after execution (currently firms are allowed 30 seconds to report). FINRA also cautioned firms against programming their systems to delay the execution of trade reports to the latest possible instant. The proposed rule amendment would allow firms at least a four-month period after adoption of the rule to implement the necessary technology changes.

See: Text of Proposed Rule Change (links externally to FINRA website).