6130. Trade Report Input
This rule is no longer applicable. NASD Rule 6130 has been superseded by FINRA Rules 7230A and 7330. Please consult the appropriate FINRA Rules.
(a) Reportable Transactions
Members shall comply with the Rule 6100 Series when reporting transactions to the System, including executions of less than one round lot if those executions are to be compared and locked-in. All trades that are reportable transactions will be processed pursuant to an effective transaction reporting plan. Trades that are not already locked-in trades will be compared and locked-in through the System. All transactions in Direct Participation Program securities shall be reported to the System pursuant to the Rule 6900 Series as set forth therein.
(b) When and How Trade Reports are Submitted
Participants shall transmit trade reports to the System for transactions in Reportable Securities within 90 seconds after execution, or shall use the Browse function to accept or decline trades within twenty (20) minutes after execution, according to the requirements of paragraph (c) of this Rule.
(c) Which Party Inputs Trade Reports
Participants shall, subject to the input requirements below, either input trade reports or use the Browse feature to accept or decline a trade within the applicable time-frames as specified in paragraph (b) of this Rule. Trade data input obligations are as follows:
(1) in transactions between a Reporting Market Maker and a Reporting Order Entry Firm, the Reporting Market Maker shall be required to submit a trade report to the System;
(2) in transactions between two Reporting Market Makers, the member representing the sell side shall be required to submit a trade report to the System;
(3) in transactions between two Reporting Order Entry Firms, the member representing the sell side shall be required to submit a trade report to the System;
(4) in transactions between a member and a non-member or customer, the member shall be required to submit a trade report to the System;
(5) in transactions conducted through a Reporting ECN that are reported to the System, the Reporting ECN shall ensure that transactions are reported in accordance with one of the following methods:
(A) the Reporting ECN shall submit the trade reports to the System and identify itself as the Reporting Party;
(B) the Reporting ECN shall submit the trade reports to the System on behalf of the Reporting Party and identify the Reporting Party in accordance with the rules for determining Reporting Parties reflected in paragraphs (1), (2), (3), and (4) above; or
(C) the Reporting ECN shall require one of the parties, determined in accordance with the rules for determining Reporting Parties reflected in paragraphs (1), (2), (3), and (4) above, to submit the trade reports to the System.
When a Reporting ECN reports transactions in accordance with subparagraph (A), the Reporting ECN shall be responsible for ensuring that the trade reports are accurate and contain all information required by subsection (d) of this rule for both the Reporting ECN and the identified non-reporting party.
When a Reporting ECN reports transactions in accordance with subparagraph (B), both the Reporting ECN and the party identified as the Reporting Party shall be responsible for ensuring that the trade reports are accurate and contain all information required by subsection (d) of this rule for both the Reporting ECN and the identified Reporting Party. When a Reporting ECN requires reporting of transactions in accordance with subparagraph (C), the Reporting Party shall be responsible for ensuring the accuracy and completeness of the trade report.
A Reporting ECN shall provide written notice to NASD of the method of trade reporting used by the Reporting ECN for each of its subscribers, and may change the method of trade reporting used for a subscriber by providing advance written notice of the change to NASD;
(6) in transactions conducted through two Reporting ECNs or a Reporting ECN and an ECN that is not a Reporting ECN, a Reporting ECN shall be responsible for complying with the requirements of paragraph (5) above for reporting a transaction executed through its facilities, and an ECN that routed an order to it for execution shall be deemed to be a Reporting Order Entry Firm and a member for purposes of the rules for determining reporting parties reflected in paragraphs (1), (3), and (4) above; and
(7) in transactions conducted through a Reporting ECN in which neither of the parties is a member, the Reporting ECN shall report the transaction in accordance with the requirements of subparagraph (5)(A) above.
(d) Trade Information To Be Input
Each report to the System shall contain the following information:
(1) Security identification symbol of the eligible security (SECID);
(2) Number of shares;
(3) Unit price, excluding commissions, mark-ups or mark-downs;
(4) The time of execution expressed in hours, minutes and seconds based on Eastern Time in military format, unless another provision of NASD's rules requires that a different time be included on the report;
(5) A symbol indicating whether the party submitting the trade report represents the Market Maker side or the Order Entry side;
(6) A symbol indicating whether the transaction is a buy, sell, sell short, or cross;
(7) A symbol indicating whether the trade is as principal, riskless principal, or agent;
(8) Reporting side Clearing Broker (if other than normal Clearing Broker);
(9) Reporting side executing broker as "give-up" (if any);
(10) Contra side executing broker;
(11) Contra side introducing broker in case of "give-up" trade;
(12) Contra side Clearing Broker (if other than normal Clearing Broker).
(13) For any transaction in an order for which a member has recording and reporting obligations under Rules 6954 and 6955, the trade report must include an order identifier, meeting such parameters as may be prescribed by NASD, assigned to the order that uniquely identifies the order for the date it was received (see Rule 6954(b)(1)).
(14) For any transaction for which the NASD/Nasdaq Trade Reporting Facility is used to transfer a transaction fee between two NASD members, the trade report must comply with the requirements of Rule 6130(h).
(e) Aggregation of Transaction Reports for Clearing Purposes Only
Individual executions of orders in a security at the same price and with the identical contra party may be aggregated into a single report and submitted to the System for purposes of clearing only; provided, however, that a Reporting Party may not withhold reporting a trade in anticipation of aggregating the transaction with other transactions.
(f) Reporting Cancelled Trades
(1) Obligation and Party Responsible for Reporting Cancelled Trades
With the exception of trades cancelled by NASD staff in accordance with Rule 11890, members shall report to the System the cancellation of any trade previously submitted to the System. The member responsible under NASD Rules for submitting the original trade report shall submit the cancellation report in accordance with the requirements set forth in paragraph (f)(2).
(2) Deadlines for Reporting Cancelled Trades
Members shall comply with deadlines set forth in Rules 4632 and 6620 for reporting cancelled trades.
(g) Reporting Certain Transactions for Purposes of Regulatory Transaction Fee Assessment
Reports submitted to the System for the following types of transactions that are assessed a regulatory transaction fee in accordance with Section 3 of Schedule A to the NASD By-Laws must comply with the requirements set forth below. Transactions must be submitted to the System by 8:00 p.m. Eastern Time (or the end of the System reporting session that is in effect at that time).
(1) Away From the Market Sales
Reports of transactions where the buyer and seller have agreed to trade at a price substantially unrelated to the current market for the security, and consideration is given, shall include a modifier of .RA to designate the transaction as submitted for purposes of the regulatory transaction fee under Section 3 of Schedule A to the NASD By-Laws. Transactions may be entered as clearing or non-clearing.
(2) Exercises of OTC Options
Reports of transactions effected pursuant to the exercise of an OTC option shall include a modifier of .RX to designate the transaction as submitted for purposes of the regulatory transaction fee under Section 3 of Schedule A to the NASD By-Laws. Transactions may be entered as clearing or non-clearing.
(h) Inclusion of Transaction Fees in Clearing Reports Submitted to the NASD/Nasdaq Trade Reporting Facility
NASD members may agree in advance to transfer a transaction fee charged by one member to another member on a transaction in NMS stocks, as defined in Rule 600(b)(47) of Regulation NMS under the Act, effected otherwise than on an exchange through the submission of a clearing report to the NASD/Nasdaq Trade Reporting Facility. Such report, inclusive of the transaction fee, will be submitted to the National Securities Clearing Corporation for processing. To facilitate the transfer of the transaction fee, the report submitted to the NASD/Nasdaq Trade Reporting Facility shall provide, in addition to all other information required to be submitted by any other rule, a total per share or contract price amount, inclusive of the transaction fee. Prior to submitting any such report, both members and their respective clearing firms, as applicable, must have executed an agreement, as specified by NASD, permitting the facilitation of the transfer of the transaction fee through the NASD/Nasdaq Trade Reporting Facility, as well as any other applicable agreement, such as a give up agreement pursuant to Rule 4632(h), and submitted the executed agreement(s) to the NASD/Nasdaq Trade Reporting Facility. Such agreement(s) are considered member records for purposes of NASD Rule 3110(a) and must be made and preserved by both members in conformity with applicable NASD rules. Nothing in this paragraph shall relieve a member from its obligations under NASD rules and the federal securities laws, including but not limited to, NASD Rule 2230 and SEC Rule 10b-10.
Example:
SELL 100 shares to another member at 10 plus a transaction fee of .01 per share;
REPORT 100 shares at 10 (the per share price exclusive of the transaction fee) to the NASD/Nasdaq Trade Reporting Facility for publication and also report 10.01 (the per share price inclusive of the transaction fee) for purposes of clearance and settlement through the National Securities Clearing Corporation.
SELL 100 shares to another member at 10 plus a transaction fee of .01 per share;
REPORT 100 shares at 10 (the per share price exclusive of the transaction fee) to the NASD/Nasdaq Trade Reporting Facility for publication and also report 10.01 (the per share price inclusive of the transaction fee) for purposes of clearance and settlement through the National Securities Clearing Corporation.
(i) Members shall not submit to the System any report (including but not limited to reports of step-outs and reversals) associated with a previously executed trade that was not reported to the System, unless such report is submitted, pursuant to Rule 4632(d), to reflect the offsetting riskless portion of a riskless principal transaction.
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Amended by SR-FINRA-2007-017 eff. March 3, 2008. Amended by SR-FINRA-2007-003 eff. Jan. 2, 2008. Amended by SR-NASD-2007-040 eff. Nov. 5, 2007. Amended by SR-NASD-2007-037 eff. July 16, 2007. Amended by SR-NASD-2007-046 eff. July 9, 2007. Amended by SR-NASD-2007-002 eff. July 9, 2007. Amended by SR-NASD-2007-047 eff. July 6, 2007. Amended by SR-NASD-2007-020 eff. March 5, 2007. Amended by SR-NASD-2006-104 eff. March 5, 2007. Amended by SR-NASD-2006-129 eff. Dec. 1, 2006. Amended by SR-NASD-2006-098 eff. Dec. 1, 2006. Amended by SR-NASD-2006-055 eff. Dec. 1, 2006. Adopted by SR-NASD-2005-087 eff. Aug. 1, 2006. Selected Notices: 06-39, 07-31, 07-33, 07-38, 07-63. |