Trade & Regulatory Reporting
In response to the advent of new technology and a demand for market transparency, FINRA and the SEC are focusing heavily on accurate trade reporting. With today’s new regulatory requirements, trade reporting practices are constantly evolving. It is more important than ever for firms to have a fully-integrated approach to order flow management and trade reporting. Our team of experienced professionals can guide you to the best approach for your business and ensure that your regulatory reporting is efficient, compliant and defensible.
Oyster’s subject matter experts can provide services in the following areas, ensuring compliance with FINRA and SEC rules:
- Consolidated Audit Trail Implementation (CAT): Oyster will provide clients with a current state assessment of their order flow, comprehensive mapping to reporting scenarios, reporting strategy analysis and assisting in UAT testing and test scripts. Our team has experience working with service providers, OMS/EMS and consolidation vendors who may be used as CAT Reporting Agents. We will work with the key stakeholders (Compliance, Legal, Operations, and IT) to ensure all requirements surrounding the end-to-end process are clearly understood and appropriate, and that effective reporting solutions are designed, documented and implemented.
- Large Options Position Reporting (LOPR): Broker-dealers are required to create and submit Large Option Position Reports to the Options Clearing Corporation when the same or related accounts transact on the same side and in the same series of options from end to end to ensure compliance with FINRA Rule 2360(b)(5)
- Short Interest Reporting: Broker-dealers are required to create and submit Short Interest Reports to ensure compliance with FINRA Rule 4560.
- Integrated National Surveillance and Information Technology Enhancements Reporting (INSITE): Broker-dealers are required to create and submit INSITE reports to ensure compliance with NASD Rule 3150
- Portfolio Margin and Margin Balance Reporting: Broker-dealers are required to create and submit Margin and Portfolio Margin Reports to ensure compliance with FINRA Rule 4521, NASD Rule 2520 and various Exchange rules
- Order Audit Trail System Reporting (OATS): Broker-dealers are required to create and submit OATS Reports to ensure compliance with FINRA Rule 7410-7470. In the futurte, OATS reporting may be replaced with CAT Reporting (see the CAT Implementation description above).
- Trade Reporting and Compliance Engine (TRACE): Broker-dealers are required to create and submit TRACE Reports to ensure compliance with FINRA’s 6700 series of rules.
- Over the Counter Reporting Facility (OTCRF): Broker-dealers are required to create and submit OTCRF Reports to ensure compliance with FINRA’s Rule 6380
The Oyster Difference
Oyster will create test scripts to define scenarios and expected outcomes for each scenario to help your firm determine if there are gaps in its current regulatory reporting process. Oyster’s consultants who specialize in Regulatory Reporting have on average over 20 years of experience, having worked with a large variety of broker-dealer, clearing firm, and trade reporting platforms, and have the industry knowledge and practical expertise to go above and beyond a simple compliance review of your firm.