In cases where originators and sales brokers are required to do otherwise, a fourth party may participate in a “give up trade”. If the buying broker and the selling broker ask the two separate traders to act on their behalf, this scenario would lead to a renunciation on both the sales and buy sides. Documented under the FIA`s standard Giveup documentation, which is available free of charge worldwide, here. There is a client version and a commercial version of the electronic give up system (EGUS). A204.5: According to FINRA rules, the “exporting party” is defined as the member who receives a processing or execution order or receives an order against its offer, then does not hijack the order and executes the transaction. In the case of transactions between two members in respect of which both members could reasonably have asserted that they met the definition of the performing party (e.g. B transactions negotiated manually by telephone), the member representing the selling party must report the transaction to FINRA, unless the parties agree otherwise and the member representing the selling party simultaneously documents this agreement. See Rules 6282 (b), 6380A (b), 6380B (b) and 6622 (b); See also Regulatory Notice 09-08 (January 2009). Q205.8: BD1 Member and BD2 Member manually negotiate an OVER-the-counter trade over the phone. Since both members could reasonably have asserted that as a member representing the selling party, they meet the definition of the exporting party, BD2 is subject to the commercial reporting obligation under FINRA rules.

If BD2 notifies the trade, does the “documented agreement at the same time” requirement apply? A204.4: The trade report submitted to finra must indicate that BD1 is for short sale. If BD1 BD2 does not wish to make it known that it is short selling, the parties may use the commercial comparison and acceptance function of a FINRA facility. In other words, BD2 declares trading within 10 seconds of the execution of the trade and BD1 between its own trading information, including short selling, within 20 minutes of the execution of the trade. See Section 103 (Trade Comparison and Assumption). In addition, BD1 may, on behalf of BD2, report, in accordance with a valid waiver agreement, as defined by FINRA () and would not be required, in such a case, to notify BD2 that it has a short sale. See Section 200 (Reports on behalf of another member). Abandonment is a securities or commodity trading procedure in which a broker-exporter places a trade on behalf of another broker. It is called “abandonment” because the broker who carries out the trading renounces credit for the transaction in the ledgers. A waiver normally occurs because a broker cannot place a trade for a client based on other employment obligations.

A waiver may also occur because the original broker is working on behalf of an interdealer broker or a primeur broker. A103.1: Currently, ADF, FINRA/NASDAQ TRF and ORF offer commercial acceptance and comparison functions. See Rules 7130 (b), 7230A (b) and 7330 (b). This means that the notifying party transmits the business information and the counterparty accepts (or rejects) the business information provided by the reporting party. The parties must use the commercial acceptance and transaction function in the absence of a waiver agreement between the parties. See FAQ 200.1. In addition, ADF, FINRA/NASDAQ TRF and ORF offer a matching feature in which each party enters its own business information and the ease intersects the two reports. . . .