What is the Mechanism of FINRA Rule 6890?

The mechanism involves member firms electronically submitting details of qualifying OTC transactions, including trade price, volume, and time of execution, to FINRA's Alternative Display Facility (ADF) or Trade Reporting Facility (TRF). This data is then made publicly available, contributing to the consolidated tape. The rule ensures that a significant portion of trading activity, even outside traditional exchange order books, is captured and visible.

What is the Methodology of FINRA Rule 6890?

The strategic methodology behind FINRA Rule 6890 aims to prevent market fragmentation and ensure fair and orderly markets by promoting price discovery and post-trade transparency for OTC transactions. This approach emphasizes standardized reporting protocols and robust data submission mechanisms. It provides a regulatory framework that, by analogy, can inform future requirements for OTC crypto transactions, enhancing investor protection and market integrity in the less liquid segments of digital asset trading.

FINRA Rule 6890

Meaning

FINRA Rule 6890 establishes requirements for firms to report over-the-counter (OTC) transactions in certain equity securities to a FINRA facility for public dissemination. While primarily focused on traditional equities, its principles of transparency and market surveillance are relevant to the broader crypto technology space as regulators consider similar reporting for digital asset trades not executed on exchanges. Its purpose is to provide market transparency and aid in regulatory oversight.

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What Are the Primary Data Security Considerations When Transmitting RFQ Data to the CAT Repository?

Securing RFQ data for CAT requires end-to-end encryption and strict access controls to protect sensitive pre-trade intelligence.

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FINRA Rule 6890

Meaning

Mechanism

Methodology

What Are the Primary Data Security Considerations When Transmitting RFQ Data to the CAT Repository?

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