Emory, I don't believe I'm mistaken at all. Please read the info that you referenced along with my example:
NASDAQ/NMS TRANSACTION REPORTING
Who Reports - Any NASD member who effects a transaction in a NASDAQ/NMS security is subject to the following trade reporting requirements regardless of whether the member is registered as a market maker in the security involved.
In transactions between:
- two market makers, only the sell side reports.
- a market maker and a non-market maker, only the market maker reports.
- two non-market makers, only the sell side reports.
- a member and a customer, the member reports.
What Price and Volume to Report:
- For agency transactions, report the number of shares and the price excluding the commission.
- For dual agency transactions, report the number of shares representing only one side of the trade, and report the price excluding the commission.
To recap the scenario I described:
a) I sell 100 shares of EDHD. These shares are purchased from me by a Market Maker (MM). Per your info, the MM is required to report this transaction. a member and a customer, the member reports
b) You buy 100 shares of EDHD. These shares are sold to you by a MM. Once again, the MM is required to report this transaction. a member and a customer, the member reports
You see, the MM does not "match" customers who are buyers and sellers, and then record the transaction as one event. The customer buys are recorded when they occur and the customer sells are recorded when they occur. On very thinly traded stocks, sometimes buys and sells will happen on different days. In addition, quantities on buys and sells will of course often differ.
Follow? Regards - Dale |
