Dec 13, 2020

Nasdaq Agu Agreement

A106.6: No For the purposes of commercial transaction regulation, transfers of equity securities under a properly documented pension agreement in good faith are considered financing agreements and not declared transactions. If the parties declare that the exchanges are “blocked” pursuant to an abandonment agreement (see section 200), the 20-minute rule does not apply. A205.12: Yes. BD1 may declare on behalf of BD2, pursuant to a previously executed assignment agreement; However, in this case, the obligation to report the trade does not refer to BD1. As a result, BD2 would remain responsible for compliance with FINRA`s trade reporting rules and could, for example, be subject to a late commercial reporting violation if BD1 does not transmit the tape report within 10 seconds of execution. See Section 200 (Reporting on Behalf of Another Member(Give-Up). A201.2: Yes. In this case, on behalf of BD1, BD2 may “abandon” or report for the purposes of the band report, provided that there is a valid and executed abandonment agreement between BD1 and BD2. See FAQ 200.1.

BD1 and BD3 must be identified as commercial parts on the group`s report. A200.3: Yes. A QSR agreement is an agreement of the National Securities Clearing Corporation (NSCC) and only shows that one party can send a trade to clearing on behalf of the other party. It does not specify that one party may report on compliance with the rules of commercial communication on behalf of another party. Therefore, an abandonment agreement as defined by the FINRA (FINRA Transparency Services Uniform Reporting Agreement) is required to allow a member to report business information on behalf of another member to a FINRA facility, even if the parties are in force. See the alert for NASD members: notice to all participants in the DEF, ADF and other NASD facilities regarding the AGU and QSR relationships (25 January 2007). Q205.13: Accept the same facts as FAQ 205.9. If the parties agree to transfer the notification obligation to BD1, can the commercial comparison and acceptance feature of FINRA/NASDAQ TRF, ADF or ORF meet the requirement that BD2 document the parties` agreement at the same time? In other words, if BD1 (the member representing the buy-side) declares the trade and BD2 (the member representing the sales site) accepts the commercial information introduced by BD1, would this be sufficient proof of the simultaneous agreement of the parties to transfer the reporting obligation to BD1? A200.1: Yes. A member may authorize another member to notify and block transactions on his behalf to a TRF, ADF or ORF, provided that both parties have entered into an agreement (a “give-up” agreement) as defined by the FINRA (FINRA Transparency Services Uniform Reporting Agreement) and have submitted this agreement to the FINA FACILITY (or entities) for which the relationship “give-up” applies. See rules 6282 (h), 6380A (h), 6380B (g) and 6622 (h); NASD Members` Warning: Notice to all participants in the TRF, ADF and other NASD facilities via the AGU and QSR relationships (25 January 2007).

The abandonment of agreements can only be used if the member who is “abandoned” or on whose behalf the report is presented is a genuine exporting part of trade. In addition, a member who is “abandoned” must have a valid MPID that the reporting member can use if he reports trades on his or her behalf.