FINRA Grants Firm Trade Reporting Exemption

FINRA granted a firm's request for an exemption from certain trade reporting obligations under FINRA Rule 6730 ("Transaction Reporting") for transactions executed on its Alternative Trading System.

FINRA issued the exemption under Rule 6732 ("Exemption from Trade Reporting Obligation for Certain Transactions on an Alternative Trading System"). An exemption under the rule permits member ATSs "to avail themselves of an alternative, streamlined reporting regime that simplifies TRACE reporting without compromising transparency." The granted exemption is subject to a number of conditions, including that one of the parties to the trade reports the trade promptly. FINRA stated that the firm's exemption is subject to "monthly transaction reporting" and the payment of "transaction reporting fees," in accordance with Rule 7730 ("Trade Reporting and Compliance Engine ("TRACE") for each exempted transaction on the firm's ATS.

To finalize the exemption, FINRA stated the firm must submit a "written attestation" and "at least two" sample executed agreements with its subscribers within 60 days. Additionally, by June 15, 2025, and on a monthly basis thereafter, the firm must provide FINRA with transaction data for the exempted trades.