For example, the BD1 member buys 1000 ABCD warranty shares on behalf of his client and declares that he is acting at FINRA/NASDAQ TRF, and then submits an outright compensation report to FINRA/NASDAQ TRF to assign those shares at the same price to that client`s account to the BD2 member. See NTMs 98-40 (May 1998) and 05-11 (February 2005); FINRA Regulatory Notice 07-38 (August 2007). A204.7: The structure of the reports of the exporting parties does not change the RQSR process or the obligations of members with respect to the contracts of engagement. The QSR agreement is an agreement entered into by the National Securities Clearing Corporation and, for FINRA`s purposes, it is simply established that one commercial party can send the trading to clearing on behalf of the other party to the trading. An assignment agreement as defined by FINRA () is required for a member to disclose business information to FINRA on behalf of another member, even if the parties have entered into a QSR agreement. As part of the informed business reporting structure, members may continue to accept that another member may notify and block transactions on its behalf in accordance with the requirements set out in Section 200 (Report on Behalf of Another Member (“Give-Up Relations”). A301.13: No, as mentioned in FAQ 301.11, the “Step-in” indicator is only used if both parties submit a pure compensation report to the FINRA facility. As a result, it should not be used when a blocked compensation report is submitted to proceed with an exit. See communication 14-21 (May 2014).
A205.8: No. The requirement for an agreement documented at the same time only applies if the commercial reporting requirement is due to the member representing the sales page (in this example BD2), but the parties have agreed that the member representing the Buy-Side (in this example BD1) will report the trade. This requirement does not apply in this example, as BD2, the member representing the sales site, declares the trade in accordance with the rules of trade. All Nasdaq agreements and forms are available in the Portable Document format (. PDF) or web format. To view and print PDF documents, you need Adobe Reader software. A407.6: No. If the FINRA facility to which the trade was declared can correct the business information without erasing the original tape report, BD1 should correct the report to satisfy the short selling (or short selling) indicator. Otherwise, BD1 must cancel the band`s initial report with a new band report containing the short selling indicator (or excluding short selling) and replace it with a new band report containing the short selling (or short selling exempt) indicator. In this case, BD1 would not be obliged to cancel an associated compensation report, provided that BD1 sends a single band cancellation, then trading between BD1 and BD3, with the short sales indicator (or short-dissulable), only in the form of volume. A202.2: No Only parties trading should be identified as the commercial parties on the band report and BD3 should therefore not be included on the band report as consideration. In this example, BD1 would report trade, and since BD2 is not a member of FINRA, BD1 would not identify BD2 as a party against.
If the parties wish to terminate the exchanges through a FINRA facility, a separate report on bandless compensation may be presented, in which BD1 and BD3 are identified as the parties to the trading, as far as the rule allows.