Q204.7: What is the impact of the reporting structure of the implementing parties on the relationship with the agreements to conclude and transfer qualified service providers (QSRs)? Q404.1: Member BD1 trades multiple trades to execute a customer order, then negotiates with the customer at a price corresponding to the weighted average cost of initial transactions, plus a net difference under a net trading agreement with its customer. How should BD1 report the trade with its customer? 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). If the parties declare that the exchanges are “blocked” pursuant to an abandonment agreement (see section 200), the 20-minute rule does not apply. The Qualified Special Representative Agreement (QSR) is an agreement between merchant brokers to enter into transactions without interaction with the NASDAQ ACT system. The QSR allows a broker-dealer to send trades directly to the National Securities Clearing Corporation on behalf of another broker. This method of clearing trades facilitates processing, reduces transaction costs and lengthens trading times. A200.4: An implementation agreement is a private contractual agreement recognized by FINRA for commercial communication purposes, but does not exempt the member from its trade reporting obligations if the rapporteur party does not report in accordance with the applicable rules. It is the responsibility of the member and the member submitting the business report to FINRA to ensure that the information provided complies with all applicable rules and rules. See rules 6282 (h) 6380A (h), 6380B (g) and 6622 (h).
Any member who allows another member to report transactions on his or her behalf must set up, maintain and enforce control procedures that allow him to find that the other member declares, in accordance with all applicable rules. See 98-96 (December 1998). The TRF FINRA/NYSE does not offer commercial and transaction functionality, so trades must be blocked before they can be transmitted to this facility. See rules 7230B (a) and 7240B. This means that the parties must have an abandonment agreement (i.e. of it) which, according to the reports, allows both parties to present trade and “block” trade without the explicit agreement of the party against. See FAQ 200.1. 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.