Quick Answer
A trade reporting system records an executed securities transaction through a trade report submitted to the applicable reporting system. The report and any quoted information must accurately reflect the transaction. Publishing a fictitious or misleading transaction report or quotation is prohibited because it can misstate market activity and price information.
Trade reporting converts an execution into information the market and regulators can rely on.
The Reporting Record
- A trade reporting system is a system used to report executed securities transactions.
- A trade report is the record submitted through the applicable reporting system for an executed transaction.
- The reporting process begins only after execution: execution → trade report → market and regulatory information.
Accuracy of Reports and Quotations
- Accurate reporting means handling trade reports and quoted information consistently with applicable trading standards.
- A transaction report or quotation cannot be fictitious or misleading.
- The same accuracy principle applies whether the information describes a completed transaction or a quotation.
Exam Tip: Gotchas
- A trade report concerns an executed transaction. A quotation is proposed price information, but it is also subject to the prohibition on fictitious or misleading information.
- A report can be inaccurate even when it comes through a reporting system. The system does not cure misleading content.