FINRA Proposes Making Available The Alternative Display Facility For Trade Reporting Only

FINRA proposed new requirements for members who want to use the Alternative Display Facility ("ADF") for trade reporting purposes only.

In a Trade Reporting Notice published in January 2016, FINRA provided guidance "on firms' over-the counter ("OTC") equity trade reporting obligation in the event of a systems issue during the trading day that prevents them from reporting OTC trades." The Notice requires "a firm that routinely reports its OTC trades in NMS stocks to only one FINRA trade reporting facility (a firm's 'primary facility') to establish and maintain connectivity and report to a second FINRA trade reporting facility (a firm's 'secondary facility') if the firm intends to continue to support OTC trading as an executing broker while its primary facility is experiencing a widespread systems issue." The FINRA proposed rule change makes the ADF available to, and presents new requirements for, members who want to use the ADF for trade reporting purposes only.