FINRA Quotation and Trading Facility Rules

What this video covers

• The three core systems: National Market System (NMS) for exchange-listed stocks, Over-the-Counter (OTC) equities and the OTC Reporting Facility (ORF), and the Trade Reporting and Compliance Engine (TRACE) for fixed income
• The critical exam distinction between quotation and trade-reporting rules (mechanics) versus conduct rules (ethics and customer dealings)
• When FINRA permits off-exchange trading to resume after a Level 1 or Level 2 market-wide halt: only if the primary listing market has not reopened within 15 minutes and trading has started on another national exchange
• Why covered initial public offering (IPO) securities cannot trade off-exchange before the listing exchange's opening transaction
• The prohibition on locking or crossing another OTC quotation medium, and the requirement that FINRA process corporate actions before members adjust quotations
• What trade shredding is, why splitting an order primarily to maximize rebates or credits is prohibited, and how exam questions disguise this violation
• Which open orders are automatically reduced for dividends on the ex-date, which are not, and when a Do Not Reduce (DNR) designation applies