J. OTC Equity Securities
This topic includes information and reporting requirements related to orders involving OTC equity securities.
On Wednesday, March 10, 2021 at 4:15 pm ET, Consolidated Audit Trail, LLC and FINRA CAT, LLC will host an industry webinar focused on the Phase 2d CAT quote and order reporting requirements for OTC Link ATS subscribers.
Please note that FINRA CAT, LLC utilizes Zoom to conduct industry webinars. Please check your firewall to ensure your firm has the ability to view Zoom content. If you are unable to download and run Zoom, please click the “join from your browser” link. This webinar will be recorded. The presentation document and recording will be posted.
- FAQJ3. What are the reporting obligations for OTC Link messages directed by an OTC Link ATS subscriber to a Global OTC quote displayed on the OTC Link ATS?
OTC Link trade messages directed by an OTC Link ATS subscriber to OTC Link ATS in response to a Global OTC quote meet the definition of an order. Because an immediately actionable order is sent to Global OTC as the result of an OTC Link message, the OTC Link ATS subscriber must report the order and route, even if the order is not ultimately executed.
Pursuant to Section 6.3(d) of the CAT NMS Plan (“Plan”), as applied to Industry Members by Section 6.4(d) of the Plan, Industry Members must report certain details to the CAT for each order and reportable event. These requirements are applied to Industry Members via each Plan Participant’s CAT Compliance Rules.
On Wednesday, September 18, 2019, at 4:15 pm ET, Consolidated Audit Trail, LLC and FINRA CAT, LLC will host an industry webinar on OTC Equities.
The event will be held at 4:15 pm ET. Please note that FINRA CAT, LLC is now utilizing Zoom to conduct industry webinars. Please check your firewall to ensure your firm has the ability to view Zoom content. The presentation document and recording will be posted.Audio file
- FAQJ1. Are quotations in OTC Equity Securities that are sent by an Industry Member to foreign exchanges reportable to CAT?
Quotations in OTC equity securities sent to foreign exchanges are required to be reported only in those instances where a resulting execution is subject to the transaction reporting requirements in FINRA Rule 6622. The requirements of FINRA Rule 6622 do not apply to transactions in foreign equity securities that are not NMS Stocks provided that: (1) the transaction is executed on and reported to a foreign securities exchange; or (2) the transaction is executed over the counter in a foreign country and is reported to the regulator of securities markets in that country.