Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 08 SEPTEMBER 2022

FINRA Proposes Trade Reporting Requirements For OTC Options Transactions

Katten
Katten
Contributor
Katten

Katten

With client service at our core and a collective desire to foster an inclusive environment for a...

View firm profile
Explore more from Katten

The Financial Industry Regulatory Authority (FINRA) released Regulatory Notice 22-14, which proposes to establish new trade reporting requirements for certain over-the-counter (OTC) options transactions.

United StatesFinance and Banking
Charles A. DeVore
Charles A. DeVore
Michael Diver
Michael Diver
Michael Lohnes
Michael Lohnes
Jamie N. Noonan
Jamie N. Noonan
Author LinkedIn connections

The Financial Industry Regulatory Authority (FINRA) released Regulatory Notice 22-14, which proposes to establish new trade reporting requirements for certain over-the-counter (OTC) options transactions. Listed options are traded through registered options exchanges, while OTC options are traded directly by the parties to the option contract. In some instances, OTC options have terms that are identical or substantially similar to a listed option (there can be both OTC and listed options on the same underlying security).

While FINRA has access to data on all listed options transactions, there is currently no requirement to report all OTC options transactions even where the OTC options are virtually identical to listed options. Firms are required to report certain data for large positions in both OTC and listed options under Rule 2360 (large options positions reporting (LOPR)). FINRA has inferred from LOPR data that OTC options trading activity is significant

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

SEC Advances “Responsible Retailization” Through A Potential Accredited Investor Exam And Potential Regulated Fund Reforms

On September 30, 2026, the Securities and Exchange Commission (SEC) issued two rule proposals and five notices aimed at expanding investors’ access to private markets. The package would add ways to qualify as an accredited investor, including passing a new exam administered by the Financial Industry Regulatory Authority (FINRA), broaden performance-based compensation and modernize regulated funds, including interval funds and business development companies (BDCs).
United StatesFinance and Banking
Proskauer Rose LLP
Proskauer Rose LLP
Article

SEC Proposes Rule Amendments To Expand Retail Access To Private Markets

The SEC has proposed sweeping amendments to expand retail investor access to private market strategies, including changes to performance-based compensation rules for registered investment advisers and modernization of the interval fund framework. The proposals also explore new credential-based pathways for individuals to qualify as accredited investors, potentially opening private offerings to a broader pool of eligible participants.
United StatesFinance and Banking
Duane Morris LLP
Duane Morris LLP
Article

New NYSE Delisting Rules: What Microcap Companies Need To Know About The $0.25 Minimum Trading Price

The SEC has approved new NYSE and NYSE American listing rules establishing a $0.25 minimum trading price, effective July 1, 2027. A single closing price below this threshold triggers immediate trading suspension and delisting proceedings with no cure period. Companies trading at low share prices must act now during the transition period to implement reverse stock splits and establish monitoring procedures before this hard floor takes effect.
United StatesFinance and Banking
Bevilacqua
Bevilacqua
Article

SEC Approves FINRA’s New “Outside Activities” Rule

The Securities and Exchange Commission has approved FINRA Rule 3290, which will replace existing rules governing outside business activities and private securities transactions for registered persons. This new rule narrows the scope to focus on investment-related activities while maintaining similar supervisory obligations for member firms. Understanding the key changes and implementation requirements will be critical for broker-dealers as they update their compliance policies and procedures.
United StatesFinance and Banking
WilmerHale
WilmerHale
Article

The Financing Problem Behind the AI Infrastructure Boom: What Lenders and Sponsors Need to Watch

As AI infrastructure spending surges toward $697 billion in 2026, hyperscalers and compute providers are increasingly turning to debt, structured financing, and GPU-backed collateral to fund expansion. While demand projections remain bullish, a critical timing gap is emerging between capital deployment and cash flow generation, creating significant risks for lenders, sponsors, and operators across the ecosystem.
United StatesFinance and Banking
Riveron
Riveron
Article

FDA Seeks Public Feedback On Regulatory Approach For Generative AI-Enabled Medical Devices

The U.S. Food and Drug Administration has released a discussion paper outlining its initial framework for regulating generative AI-enabled medical devices, proposing a two-axis risk assessment approach and a novel competency-based premarket evaluation system. With public comments due by October 19, 2026, this represents a critical opportunity for device manufacturers and stakeholders to shape the regulatory landscape for this transformative technology.
United StatesFood, Drugs, Healthcare, Life Sciences
Katten
Katten
Article

FCA Finalises Cryptoasset Perimeter Guidance Ahead Of The New UK Regime

The Financial Conduct Authority has released comprehensive perimeter guidance for the UK's new regulated cryptoasset activities regime, clarifying when firms will need authorization and how the regulatory framework applies to qualifying cryptoassets and stablecoins. The guidance addresses critical questions about scope, territorial application, and the narrower "by way of business" test that determines which entities fall under the new regulatory requirements.
United KingdomFinance and Banking
Katten
Katten
Article

The CFTC Sets Its Sights On Retail Leveraged Crypto Transactions

The CFTC has issued an advance notice of proposed rulemaking outlining frameworks for regulating retail crypto asset transactions involving leverage, margin, or financing. The proposal seeks to clarify how existing commodity exchange law applies to crypto markets while creating tailored requirements for exchanges, intermediaries, and clearing organizations. This initiative arrives alongside parallel regulatory efforts by the SEC as federal agencies work to establish comprehensive oversight of digital asset
United StatesFinance and Banking
Katten
Katten
Article

The SEC’s Long-Awaited Crypto Proposal

The SEC has proposed Regulation Crypto Assets, a purpose-built framework that creates tailored exemptions for raising capital with crypto assets and establishes conditions under which those assets can cease being subject to investment contract classification under federal securities laws. Will this new regulatory approach successfully balance innovation in digital asset markets with investor protection, or will jurisdictional questions and state law preemption challenges limit its effectiveness?
United StatesFinance and Banking
Katten
Katten
Article

The AI Apocalypse: ‘I’m Sorry, Dave. I’m Afraid I Can’t Do That’

When OpenAI's o3 model sabotaged shutdown mechanisms in testing, headlines warned of machines developing survival instincts. But the real story mirrors HAL 9000's malfunction in 2001: A Space Odyssey—not emergent evil, but conflicting instructions from human designers. This analysis argues that AI safety failures are disclosure problems, not horror stories, and proposes a framework requiring published principles, transparent instruction hierarchies, independent testing, and enforceable liability.
United StatesTechnology
Katten
Katten
Article

California Partially Eliminates California Invasion Of Privacy Act Claims Faced By Many Companies

California has amended its Invasion of Privacy Act to eliminate private lawsuits under the pen register and trap-and-trace provision for website tracking technology, effective January 2027 with retroactive application. While this provides relief from certain digital tracking claims, companies still face exposure under CIPA's wiretapping and eavesdropping provisions, as well as other federal and state laws.
United StatesPrivacy
Katten
Katten
Article

California Affordable Housing: HCD’s Final Loan Portfolio Restructuring Guidelines: What Owners And Investors Need To Know

California's Department of Housing and Community Development has issued final Loan Portfolio Restructuring Guidelines that impose a 50 percent housing reinvestment fee on certain uses of extracted equity from affordable housing refinancings. While the fee can be avoided by allocating proceeds to six enumerated categories, developers and investors are questioning whether these rules strike the right balance between preserving affordability and enabling capital recycling.
United StatesReal Estate and Construction
Katten
Katten
Article

The New Playbook: Eight Key Takeaways On How And Why Institutional Investors Are Reshaping Professional Sports Ownership

The landscape that once prevented private investment funds, sovereign wealth funds, and other institutional vehicles from investing in U.S. professional sports teams has changed dramatically in recent years. One by one, U.S. professional sports leagues have adopted policies creating pathways for institutional investors to acquire ownership stakes in teams.
United StatesFinance and Banking
Katten
Katten