Trade Reporting Rules
Broker/dealers can use these guidelines for reporting transactions.
6600. Reporting Transactions In Over-the-Counter Equity Securities
Rule 6600 Series sets forth the trade reporting requirements applicable to members'
transactions in equity securities for which real-time trade reporting is not otherwise
required (hereinafter referred to as "OTC Equity Securities"). Members shall utilize the
Automated Confirmation Transaction ServiceSM (ACTSM) for trade reporting in OTC Equity
Securities.
6610. Definitions
a.Terms used in this Rule shall have the same meaning as those defined in the
Association's By-Laws and Rules unless otherwise specified herein.
b."Automated Confirmation Transaction Service" or ACT is the service that, among
other things, accommodates reporting and dissemination of last sale reports in
OTC Equity Securities. Regarding those OTC Equity Securities that are not
eligible for clearance and settlement through the facilities of the National
Securities Clearing Corporation, the ACT comparison function will not be available.
However, ACT will support the entry and dissemination of last sale data on such
securities.
c."Non-Market Maker" means a member of the Association that is not an OTC
Market Maker with respect to a particular OTC Equity Security.
d."OTC Equity Security" means any equity security not classified as a "designated
security," for purposes of the Rule 4630 and 4640 Series. This term also includes
certain exchange-listed securities that do not otherwise qualify for real-time trade
reporting because they are not "eligible securities" as defined in Rule 6410(d). The
term "OTC Equity Security" shall not include "restricted securities," as defined by
SEC Rule 144(a)(3) under the Securities Act of 1933, nor any securities
designated in The PORTALSM Market, the Rule 5300 Series.
e."OTC Market Maker" means a member of the Association that holds itself out as a
Market Maker by entering proprietary quotations or indications of interest for a
particular OTC Equity Security in any inter-dealer quotation system, including any
system that the Commission has qualified pursuant to Section 17B of the Act. A
member is an OTC Market Maker only in those OTC Equity Securities in which it
displays market making interest via an inter-dealer quotation system.
6620. Transaction Reporting
a.When and How Transactions are Reported
1.OTC Market Makers shall, within 90 seconds after execution, transmit
through ACT last sale reports of transactions in OTC Equity Securities
executed during normal market hours. Transactions not reported within 90
seconds after execution shall be designated as late.
2.Non-Market Makers shall, within 90 seconds after execution, transmit
through ACT or the ACT service desk (if qualified pursuant to Rule 7010(i)),
or if ACT is unavailable due to system or transmission failure, by telephone
to the Nasdaq Market Operations Department, last sale reports of
transactions in OTC Equity Securities executed during normal market
hours. Transactions not reported within 90 seconds after execution shall be
designated as late.
3.Transaction Reporting Outside Normal Market Hours
A.Last sale reports of transactions in OTC Equity Securities executed
between 8:00 a.m. and 9:30 a.m. Eastern Time shall be transmitted
through ACT within 90 seconds after execution and shall be
designated as ".T" trades to denote their execution outside normal
market hours. Last sale reports of transactions in OTC Equity
Securities executed between the hours of 4:00 p.m. and 5:15 p.m.
Eastern Time shall also be transmitted through ACT within 90
seconds after execution; trades executed and reported after 4:00
p.m. Eastern Time shall be designated as ".T" to denote their
execution outside normal market hours. Transactions not reported
within 90 seconds must include the time of execution on the trade
report.
B.Last sale reports of transactions in OTC Equity Securities executed
outside the hours of 8:00 a.m. and 5:15 p.m. Eastern Time shall be
reported as follows:
(i)
Last sale reports of transactions in American Depositary
Receipts (ADRs), Canadian issues, or domestic OTC Equity
Securities that are executed between midnight and 8:00
a.m. Eastern Time shall be transmitted through ACT
between 8:00 a.m. and 9:30 a.m. Eastern Time on trade
date, be designated as ".T" trades to denote their execution
outside normal market hours, and be accompanied by the
time of execution. The party responsible for reporting on
trade date, the trade details to be reported, and the
applicable procedures shall be governed, respectively, by
paragraphs (b), (c), and (d) below;
(ii)
Last sale reports of transactions in ADRs, Canadian issues,
or domestic OTC Equity Securities that are executed
between 5:15 p.m. and midnight Eastern Time shall be
transmitted through ACT on the next business day (T+1)
between 8:00 a.m. and 1:30 p.m. Eastern Time, be
designated "as/of" trades to denote their execution on a
prior day, and be accompanied by the time of execution.
The party responsible for reporting on T+1, the trade details
to be reported, and the applicable procedures shall be
governed, respectively, by paragraphs (b), (c), and (d) below;
and
(iii)
Last sale reports of transactions in foreign securities
(excluding ADRs and Canadian issues) shall be transmitted
through ACT on T+1 regardless of time of execution. Such
reports shall be made between 8:00 a.m. and 1:30 p.m.
Eastern Time in the same manner as described in
subparagraph (3)(B)(ii) above.
4.All members shall report weekly to the Market Surveillance Department on
Form T, last sale reports of transactions in OTC Equity Securities that were
not transmitted through ACT, for whatever reason, either on trade date or
the next business day. Form T shall be used exclusively as a back-up
mode whenever electronic entry of trade data is not feasible due to system
malfunctions or other unusual conditions.
5.A pattern or practice of late reporting without exceptional circumstances
may be considered conduct inconsistent with high standards of commercial
honor and just and equitable principles of trade, in violation of Rule 2110.*
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