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). A Qualified Special Representation Agreement (QSR) allows brokers to conduct transactions without using the Nasdaq ACT system. Using a QSR allows a broker to process trades more efficiently, more easily and at a lower cost. A QSR also allows brokers to trade after or before regular trading hours. A Qualified Special Agreement (QSR) is an agreement of the National Securities Clearing Corporation (NSCC) that allows a broker to send a negotiation to a clearing house on behalf of another broker. A200.8: FINRA/NASDAQ TRF Carteret and FINRA/NASDAQ TRF Chicago are separate and different facilities. As a result, BD1 and BD2 must update their existing agreement if they provide that they apply to FINRA/Nasdaq TRF Chicago. See the technical opinion of July 31, 2018 (participation in the new FINRA/Nasdaq trade reporting mechanism).
A302.2: Members can report the main transactions without risk over the counter by transmitting a single band report to a FINRA facility marked by a « risk-free main capacity indicator » at no cost, equivalent to the commission or otherwise, in the same way as an agency transaction. Members can also notify a non-risk main transaction by submitting two (or other) reports: (1) a group report that reflects the initial portion of the transaction with capital capacity; and (2) a non-band relationship (only with respect to regulation or clearing) in order to re-account for the « risk-free » part of the transaction, with the capacity of risk-free capital. See Rules 6282 (d) (3) (B), 6380A (d) (3) (B), 6380B (d) (3) (B) and 6622 (d) (3) (B); NTMs 99-65 (August 1999), 99-66 (August 1999) and 00-79 (November 2000). If the band report incorrectly reflects a « principle » capacity for a non-office primary business, the non-volume ratio is required by the commercial reporting rules. Q201.5: The BD1 member trading with his clearing company BD2, which is also a member. Can BD2 « abandon » or report the group`s report on behalf of BD1? A206.14: FINRA rules generally prohibit non-chain reports (including clearing reports) in previously executed exchanges that have not been notified at the same facility, except for the second stage of a principal or risk-free agency transaction. However.B companies 300.2 and 300.3. FINRA will exempt companies from this requirement if FINRA has announced a widespread systemic problem for which companies should refer to their « widespread failure response procedures. » Therefore, an entity may, in this limited case only, transmit to its secondary facility FINRA a band report and a non-volume ratio for the same trade to its primary FINRA facility.