Proposed Rule Change to Amend Trade Reporting Structure and Require Submission of Non-Tape Reports to Identify Other Members for Agency and Riskless Principal Transactions

Financial Industry Regulatory Authority, Inc. ("FINRA") (f/k/a National Association of Securities Dealers, Inc. ("NASD")) is filing with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to amend its trade reporting rules applicable to over-the-counter (OTC) equity transactions to: (1) replace the current market maker-based trade reporting framework with an "executing party" framework; and (2) require that any member with the trade reporting obligation under FINRA rules that is acting in a riskless principal or agency capacity on behalf of one or more other members submit non-tape report(s) to FINRA, as necessary, to identify such other member(s) as a party to the trade.