Do the recordkeeping and reporting requirements of Rule 13h-1 apply only to NMS securities? BD1 sells to BD2—short sale or short sale exempt indicator Non-tape report: When BD1, as principal, sells the 5, shares of ABCD to its customer at its volume-weighted average cost, BD1 should submit a non-tape report showing the sale of 5, shares to the customer; the weighted average price modifier should not be included on the non-tape report. Because the trade price is based on the previous day's closing price, the trade should be reported with the special pricing formula. Member BD1 matches as agent a buy order from member BD2 and an order to sell short or short exempt for the same quantity of shares at the same price from member BD3. Thus, in the example above, when reporting the price adjustment trade with the PRP modifier, BD1 should report 1: How should members report a prior reference price transaction that is executed and reported within 10 seconds of the time the prior reference time?
On January 20, , FINRA published a Trade Reporting Notice with guidance on a firm's OTC equity trading and reporting obligations in the event of a systems issue during the trading day that prevents the firm from reporting OTC trades within the time frame prescribed by FINRA rules.
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The term includes step and adoptive relationships. Options Price Reporting Authority. Volume II contains specific instructions for Form 13H. The term refers to ownership of the large trader partnership entity, not the accounts that may be managed by the large trader. Does Item 6 of Form 13H require the identification of only registered broker-dealers that effect transactions in NMS securities?
Item 6 requires the identification of registered broker-dealers at which the large trader or its Securities Affiliates have an account for the trading of NMS securities.
For example, if a large trader has a relationship with 10 registered broker-dealers, it should list each broker-dealer in Item 6 even if the large trader only effected transactions through 8 of those entities during the reporting period. At their option, large traders also may list non-registered broker-dealers e. Because Rule 13h-1 was effective on October 3, , no full calendar year has elapsed for Accordingly, no annual filing is required for For large traders who registered by the December 1, compliance date, the first annual filing will be required for the period ending December 31, For large traders who register starting in , an annual filing is required at the end of each calendar year.
For example, if a trader met the identifying activity level on October 16, and filed an initial Form 13H on October 22, , its first annual filing would be due for the period ending December 31, If a large trader files an amended Form 13H to reflect changes made during the fourth calendar quarter, will the large trader still be required to file the mandatory annual updated Form 13H? Doing so allows a large trader to satisfy both the amended 4th quarter filing Form 13H-Q as well as the annual update Form 13H-A , as long as the submission is made within the period permitted for the 4th quarter amendment i.
Large traders should retain this email for future reference. The LTID is a total of characters. The first 8 characters constitute the root LTID number, which is assigned to the large trader by the Commission in response to the submission of an initial Form 13H filing. The root number is followed by a dash and a maximum 4-digit suffix suffixes are optional and are assigned by a large trader at its discretion; suffixes may be assigned to multiple entities under common control of the large trader, for example among affiliates that reflect a commonality e.
Suffixes should be numbers, not letters, and should be right-justified with zeros used as placeholders e. For example, an LTID number could look like: For Unidentified Large Traders, broker-dealers should assign their own unique identifying number to each person it identifies as an Unidentified Large Trader. The unique identifier should conform to the format of the LTID i.
Do the recordkeeping and reporting requirements of Rule 13h-1 apply only to NMS securities? For purposes of Rule 13h-1, do the purchase or sale of securities pursuant to options exercises and assignments need to be reported? Accordingly, if a broker-dealer reports the purchase or sale of the underlying security in connection with the exercise or assignment of an options contract and such transaction involves the account of a large trader, then the broker-dealer does not need to supply an LTID number or report any information in the execution time field for the transaction in the underlying security.
Volume Calculation Equity Options. Volume does not need to be calculated for index options. The following example shows how to calculate the value of an equity option using premium paid: The following example shows how to calculate the value of an index option: Large Trader Identification Question 1.
What is an NMS Security? As of March , the current effective transaction reporting plans and the effective national market system plan for the reporting of transactions in listed options that are relevant for purposes of Rule 13h-1 include:
Expired and Executed Options
At the end of each trading day, clearing members are required to report all option trades to the exchange. These reports will include orders executed for the clearing member’s own account as well as orders executed for the accounts of the clearing member’s customers (introducing broker dealers). The Financial Industry Regulatory Authority Inc. has censured Wells Fargo Securities and fined it $ million for errors and inaccuracies in reporting over-the-counter options trades conducted between January and March of this year. Like options-trading strategies, the tax treatment of options trades is far from simple. Under new broker reporting requirements, options transactions are now reported to the Internal Revenue Service when you close the position, including your cost basis and capital gain or loss.