When are two transactions on a net basis considered a net trade?
A304.2: Because the two transactions are effected at two different prices, this is considered a net trade and both transactions must be reported to the tape. See NTM 01-85 (December 2001). Q304.3: What disclosure requirements apply when a market maker is trading on a net basis with a customer?
Which trades must be reported separately to the tape?
Thus, each trade, at each respective price, must be reported separately to the tape. See NTMs 99-65 (August 1999), 00-79 (November 2000) and 01-85 (December 2001).
What is considered a block trade on the tape?
A trade is considered to be a "block trade" if the amount is for a minimum of: A. 100 shares B. 1,000 shares C. 10,000 shares D. 100,000 shares 10,000 shares Once a trade hits 10,000 shares, it is considered a "block" trade. The full amount of the "block" is printed on the tape.
What is the difference between ECN and tape report?
For example, an ECN matches the orders of two members, BD1 and BD2, and executes the trade, and the tape report identifies the ECN and one of the members (e.g., BD1) as the parties to the trade. The ECN is required to submit a non-tape report to reflect the offsetting leg of the transaction; in this example, ECN vs. BD2.
Which of the following statements are true about computerized trading of securities on exchanges as compared to manual trading?
Which of the following statements are TRUE about computerized trading of securities on exchanges as compared to manual trading? The best answer is A. Electronic trading systems, such as the NYSE Super Display Book system, are faster, cheaper, and more efficient than manual trading by floor brokers.
Which of the following statements are true about the New York Stock Exchange Super Display Book system?
All of the statements are true regarding the Super Display Book System. It is an electronic order entry, order matching, and trade reporting system. The system can only handle round lots (100 shares or more), with limits on the maximum order size permitted (e.g., 3,000,000 shares for limit orders).
Which statements are true spread orders?
Which statements are TRUE regarding spread orders? Spread orders are entered on a one-to-one basis, meaning that both sides of the spread are on one ticket.
Who handles odd lot transactions on NYSE?
Odd lot transactions on the NYSE are handled by designated "Odd Lot" dealers - who happen to be the Specialists (Designated Market Makers) in the assigned stocks. Stopping stock is a courtesy function that is only allowed for public orders; stock cannot be stopped for a member's own account.
What is tape reporting?
Consolidated tape is an electronic system that collates real-time exchange-listed data, such as price and volume, and disseminates it to investors. Through the consolidated tape, various major exchanges, including the New York Stock Exchange, the NASDAQ, and the Chicago Board Options Exchange, report trades and quotes.
Which statements are true about trading of stocks in the second market?
Which statements are TRUE about trading of stocks in the Second market? The best answer is D. The over-the-counter market is a negotiated market. A greater number of companies trade OTC (about 6,000 smaller companies) than on any single exchange.
Which statements are true about reporting of trades in Nasdaq stocks?
Which statements are TRUE about reporting of trades in NASDAQ stocks? The best answer is C. Trades of NASDAQ stocks must be reported by the executing member within 10 seconds of execution to the Network C tape.
What is a stock order?
A market order is an order to buy or sell a security immediately. This type of order guarantees that the order will be executed, but does not guarantee the execution price. A market order generally will execute at or near the current bid (for a sell order) or ask (for a buy order) price.
What is spread in stock market?
In finance, a spread refers to the difference between two prices, rates, or yields. One of the most common types is the bid-ask spread, which refers to the gap between the bid (from buyers) and the ask (from sellers) prices of a security or asset.
What does the NYSE trade?
The New York Stock Exchange (NYSE) is the biggest marketplace in the world for investors to buy and sell shares of stock. Located on Wall Street in New York City and owned by Intercontinental Exchange (NYSE:ICE), the NYSE has a history that goes back more than 200 years.
What is an odd lot trade?
Odd-lot trades refer to orders involving shares less than a round lot of 100 shares. These odd-lot trades are thought to be made predominantly by individual retail traders who are likely less informed participants in the market.
How many stocks does a NYSE specialist trade?
Understanding a Specialist Most specialists traded five to 10 stocks at a time on any given trading day.
How long does it take to get a margin on a new issue of a stock?
New issues are not eligible for margin until 30 days have elapsed from the completion of the offering.
What is the margin requirement for selling short put?
The sale of the puts is covered by the short stock position. The margin requirement to sell the puts is "0 " since there is no risk on the short puts (if the short puts are exercised, the writer has the money in the account to pay for buying the stock from the short sale credits previously received).
Is the interest payment based on the stated interest rate times par value?
Notice that the fact that the bond is trading at a premium is irrelevant - the interest payment is based on the stated interest rate times par value.
How many shares does the NYSE trade a day?
It is these systems that allow the NYSE to trade, on average, 1 billion shares a day. FINRA and NYSE rules require that public customer orders get priority over member firm orders. Thus, the statement that member firm orders are given priority over public orders is false.
How many shares are required to list on the NYSE?
Under NYSE rules, the numerical standards for a company wishing to move its listing from another market include 2,200 or more shareholders, with an average monthly trading volume of 100,000 shares for the past 6 months. There must be 1,100,000 publicly held shares with an aggregate market value of $100,000,000.
How many shares of ABC is customer D?
d. Customer D, who is long 100 shares of ABC, and short 200 shares of ABC in a margin account
What is the minimum share size for a bid on the NYSE?
Under NYSE trading rules, bids and offers must be for the minimum 100 share size trading unit; the highest bid and lowest offer have priority (the same as NASDAQ's "inside market" - now renamed the NBBO - National Best Bid and Offer); and all bids and offers must be publicly announced (no secret bids and offers, or side deals allowed). Bids and offers are always set by market participants; they are not set by floor officials (the regulators) under any circumstances.
What does it mean to stop stock?
Stopping stock is a courtesy function that is only allowed for public orders; stock cannot be stopped for a member's own account. When a Specialist (the DMM- Designated Market Maker) "stops stock," he guarantees a price to a floor broker for a short time period. The floor broker is free to try and get a better price in the "crowd," but if he is not successful, he can go back to the Specialist/DMM for the stock at the guaranteed price.
Does the NYSE have a debt to equity ratio?
The NYSE does not set a maximum debt to equity ratio for a company that wishes to move its listing. It does require that the company have 2,200 or more shareholders; an average monthly trading volume of 100,000 shares for the past 6 months; $100,000,000 aggregate market value of outstanding shares; and at least 1,100,000 shares outstanding. Also, there must be a national interest in trading the stock and the company must agree to distribute proxies to be listed.
Who sets bids and offers?
Bids and offers are always set by market participants ; they are not set by floor officials (the regulators) under any circumstances. A customer owns 100 shares of an NYSE listed preferred stock and notices that the typical daily trading volume in the issue is less than 1,000 shares.
Why are American depository receipts traded?
Shares trade in this manner because the underlying company does not wish to or cannot meet the stringent exchange requirements. Also, the $500,000 cost to list on the NYSE—up to $75,000 on Nasdaq—creates a barrier for many companies. 4 5
What Is an Example of an Over-the-Counter Market?
An example of an over-the-counter market would be a trade that occurs between two individuals that buy and sell a share of a company that is not listed on an exchange. An over-the-counter market can consist of any security, such as equities, commodities, and derivatives.
How do OTC shares raise capital?
Companies with OTC shares may raise capital through the sale of stock.
Is OTCQX a formal exchange?
Although OTC networks are not formal exchanges such as the NYSE, they still have eligibility requirements. For example, the OTCQX does not list the stocks that sell for less than five dollars—known as penny stocks—shell companies, or companies going through bankruptcy.
Where a transaction falls within this exception for riskless principal or agency transactions, must members identify on non-tape?
Where a transaction falls within this exception for riskless principal or agency transactions, members must identify on non-tape reports the market or facility where an associated trade was reported, if the related tape and non-tape reports are submitted to different FINRA Facilities or the non-tape report is associated with a trade that was reported to the tape through an exchange. See Section 405 (Related Market Center).
How late can a trade be reported to FINRA?
The FINRA Facility will mark any trade reported more than 10 seconds after execution as late. For example, a trade with an execution time of 10:01:00:999 must be reported no later than 10:01:10:999; if the trade is reported at 10:01:11:000, it will be marked late by the FINRA Facility.
What is A206.16?
A206.16: FINRA will announce that a widespread systems issue has been resolved and that firms can resume executing OTC trades and reporting to their primary FINRA Facility via the methods identified in FAQ 206.3 above.
When did FINRA publish the OTC trading notice?
On January 20, 2016, FINRA published a Trade Reporting Notice with guidance on a firm's OTC equity trading and reporting obligations in the event of a systems issue during the trading day that prevents the firm from reporting OTC trades within the time frame prescribed by FINRA rules.
Does FINRA require tape and clearing?
A206.15: As noted in FAQ 206.14, FINRA will relieve firms of the requirement that tape and clearing reports for the same trade be submitted to the same FINRA Facility where FINRA has announced a widespread systems issue for which firms should invoke their "widespread outage response" procedures. Thus—in this limited instance only—a firm may submit a tape report to its secondary FINRA Facility and a clearing report for the same trade to its primary FINRA Facility.
Is a transfer between two entities reportable to FINRA?
A106.5: No, this transfer is not required to be reported to FINRA. Because in this example, there is no change in beneficial ownership, this is not considered a “trade” for purposes of the trade reporting rules. See FAQ 100.4. While the general presumption is that a transfer between separate legal entities is a reportable trade, in this example, BD1 and BD2 can satisfactorily demonstrate (e.g., via an opinion of counsel) and have documented that due to their specific corporate or organizational structure, the transfer results in no change in beneficial ownership.
Does NSCC require real time trade submission?
However, as noted in FAQ 206.14, this does not change firms' obligations under other applicable rules, including NSCC's rules requiring that locked-in trade data be submitted in real time and prohibiting pre-netting and other practices that prevent real-time trade submission. See, e.g., FAQ 102.2. A significant delay in the submission of the clearing report to the firm's primary FINRA Facility after trade execution and submission of the tape report to the firm's secondary FINRA Facility may be inconsistent with NSCC rules requiring real-time submission.
When a company issues securities to the public marketplace, it selects an available symbol for its shares, often related to?
When a company issues securities to the public marketplace, it selects an available symbol for its shares, often related to the company name .
What Is a Stock Symbol (Ticker)?
A stock symbol is a unique series of letters assigned to a security for trading purposes. Stocks listed on the New York Stock Exchange (NYSE) can have four or fewer letters. Nasdaq -listed securities can have up to five characters. Symbols are just a shorthand way of describing a company's stock, so there is no significant difference between those that have three letters and those that have four or five. Stock symbols are also known as ticker symbols.
What does the symbol on a stock mean?
Some stock symbols indicate whether the shares of a company have voting rights, especially if the company has more than one class of shares trading in the market. For example, Alphabet Inc. (formerly Google) has two classes of shares trading on the Nasdaq with stock symbols GOOG and GOOGL. Common shareholders of GOOG have no voting rights since GOOG shares are Class C shares, while GOOGL shares are Class A shares and have one vote each.
Why do we use stock symbol?
In addition to saving time and capturing a specific stock price at the right time , stock symbols are useful when two or more companies have similar monikers. For example, CIT Group (CIT) and Citigroup (C) have nearly identical names, but are not affiliated with each other: CIT Group specializes in financing and leasing, and Citigroup is global bank. Both firms trade on the NYSE, with CIT Group trading under the CIT ticker symbol and Citigroup trading under C.
What is a ticker symbol?
What Is a Stock Symbol (Ticker)? A stock symbol is a unique series of letters assigned to a security for trading purposes. Stocks listed on the New York Stock Exchange (NYSE) can have four or fewer letters.
What does PR mean in stock?
If the company has more than one class of shares trading in the market, then it will have the class added to its suffix. If it is a preferred stock, the letters "PR" and the letter denoting the class will typically be added.
What does the 5th letter mean on the Nasdaq?
On the Nasdaq, a fifth letter is added to stocks that are delinquent in certain exchange requirements. For example, with ACERW, the first four letters comprise the stock symbol for Acer Therapeutics Inc. (ACER), and the last letter ‘W’ indicates that the shares have warrants attached.