Trade Execution Activities
Chapters in this video
- 0:00 The three venue types: exchange, OTC, and ATS
- 1:34 Is an ATS an SRO: the subscribers trap
- 3:37 Form ATS-N versus Form ATS: the 20-day rule
- 4:25 Security futures recordkeeping: the one business day rule
- 4:55 Dark pools versus TRF reporting: hiding bids, not trades
- 6:02 Why trading halts happen and who must stop
- 6:48 The three banned activities during a halt
- 7:24 Rapid-fire exam recap
What this video covers
- How exchanges use a centralized order book with price and time priority, versus dealer-to-dealer negotiation in the over-the-counter (OTC) market
- Why an alternative trading system (ATS) is not a self-regulatory organization (SRO) and has subscribers, not members
- The registration requirement that an ATS must register as a broker-dealer and comply with the Financial Industry Regulatory Authority (FINRA), even though it has zero regulatory responsibilities over its subscribers
- When an ATS trading National Market System (NMS) stocks files the public Form ATS-N with the Securities and Exchange Commission (SEC), versus the confidential Form ATS filed 20 days in advance for non-NMS stocks
- What a dark pool is: a type of ATS that hides pre-trade quotes to minimize market impact on large institutional trades
- Why all ATS trades in listed securities, including dark pool trades, must still be reported to a FINRA Trade Reporting Facility (TRF) and published on the consolidated tape post-execution
- The three prohibited activities during a trading halt: executing transactions, publishing quotations, and publishing indications of interest
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