Step Out Agreement

A103.1: ADF, FINRA/NASDAQ TRF and ORF currently offer acceptance and comparison functions. See rules 7130 (b), 7230A (b) and 7330 (b). This means that the reporting party submits the business information and the contra party accepts (or rejects) the commercial information transmitted by the reporting party. Contracting parties must use the commercial acceptance and transaction feature in the absence of an abandonment agreement between the parties. See FAQ 200.1. In addition, aDF, FINRA/NASDAQ TRF and ORF offer an appropriate functionality in which each party enters its own business information and the facility complies with both reports. See rules 7140, 7240A and 7340. See also The Trade Reporting Notice 10/7/16 (Trade Match and “Trade Match” Clearing Submissions on FINRA`s Alternative Display Facility). Q301.11: How do I use the “Step-in” indicator? Q205.8: MEMBER BD1 and BD2 member manually trade over-the-counter by telephone. Since both members could reasonably claim that they meet the definition of the exporting party, BD2, as a member representing the sales site, has an obligation to establish commercial relationships in accordance with FINRA rules. If BD2 reports trade, does the “documented agreement at the same time” requirement apply? Step-out trading is the execution of a large order by several brokerage companies, which are assigned to each part of the trading of another brokerage house.

In step-out trading, a broker makes a large order and then assigns loans or commissions to other brokers on the trading share he makes. Although different brokers execute different trading blocks, each block is executed at the same price. Members who notify trades at a FINRA facility that does not subject transactions to clearing for publication must make other arrangements to close these transactions (for example. B, agreements reached by the Qualified Service Manager (QSR) with the NSCC. A205.9: Yes. In accordance with FINRA rules, BD1 and BD2 may agree that BD1 will notify the trade and, in this case, BD2 will have to document the agreement of the parties at the same time. See rules 6282 (b), 6380A (b), 6380B (b) and 6622 (b); See also communication 09-08 (January 2009). A200.3: Yes. A QSR agreement is an agreement of the National Securities Clearing Corporation (NSCC) and only shows that one party can send a trade to clearing on behalf of the other party. It does not specify that one party may report on compliance with the rules of commercial communication on behalf of another party. Therefore, an abandonment agreement as defined by the FINRA (FINRA Transparency Services Uniform Reporting Agreement) is required to allow a member to report business information on behalf of another member to a FINRA facility, even if the parties are in force. See the alert for NASD members: notice to all participants in the DEF, ADF and other NASD facilities regarding the AGU and QSR relationships (25 January 2007).

If the parties declare that the exchanges are “blocked” pursuant to an abandonment agreement (see section 200), the 20-minute rule does not apply. A301.11: If both parties submit a compensation report to proceed with an exit, the company that disintegrates must notify an exit and the company that obtains the position must report a step.