FINRA/NYSE Trade Reporting Facility
FINRA Rule 7200B is the series marker for the technical participation, reporting, and processing rules governing the FINRA/NYSE Trade Reporting Facility, the smaller of FINRA's two Trade Reporting Facility groups by reported volume, alongside the FINRA/Nasdaq Trade Reporting Facility.
The technical provisions now comprising the Rule 7200B Series were originally adopted as NASD rules by SR-NASD-2007-011, effective April 18, 2007. As part of the Consolidated FINRA Rulebook initiative, these provisions were amended and renumbered by SR-FINRA-2008-021, effective December 15, 2008, and were further renumbered from an interim "Rule 7210C" designation to their final "Rule 7210B" numbering, and equivalent designations throughout the series, by SR-FINRA-2008-066, effective January 1, 2009.
The underlying governing Limited Liability Company Agreement establishing the FINRA/NYSE Trade Reporting Facility LLC was originally entered into between NYSE Market, Inc. and FINRA effective October 1, 2008, and has since been amended and restated, most recently through a Second Amended and Restated Limited Liability Company Agreement dated September 13, 2017, between FINRA and NYSE Market (DE), Inc., the entity's successor name.
Like the FINRA/Nasdaq TRF, the FINRA/NYSE TRF is not operated directly by FINRA; it is operated by NYSE Market (DE), Inc. pursuant to that LLC Agreement, structured on the same SRO Member/Business Member model.
Under that structure, FINRA retains sole regulatory responsibility as SRO Member, while NYSE Market (DE), as Business Member, is primarily responsible for the facility's business affairs, including establishing pricing for its use, to the extent those affairs are not inconsistent with FINRA's regulatory and oversight functions; the Business Member also collects all fees on behalf of the facility.
The FINRA/NYSE TRF is one of four FINRA facilities members may use to report over-the-counter trades in NMS stocks, alongside the FINRA/Nasdaq TRF Carteret, the FINRA/Nasdaq TRF Chicago, and the ADF.
While members are required to report all OTC trades in NMS stocks to FINRA, they may choose which facility, or facilities, to use to satisfy that obligation, and the facilities compete for that reporting volume under differing fee structures set by their respective Business Members. Based on reported figures for December 2021, the FINRA/NYSE TRF handled approximately 17% of shares in NMS stocks traded OTC, compared to approximately 83% handled by the FINRA/Nasdaq TRF.
The series consists of Rule 7210B, Definitions; Rule 7220B, Trade Reporting Participation Requirements; Rule 7230B, Trade Report Input; Rule 7240B, Trade Report Processing; Rule 7250B, Obligation to Honor Trades; Rule 7260B, Audit Trail Requirements; Rule 7270B, Violation of Reporting Rules; and Rule 7280B, Termination of Access.
Definitions
Rule 7210B defines "Clearing Broker-Dealer" or "Clearing Broker" as the member firm identified in the System as principal for clearing and settling a trade. "Correspondent Executing Broker-Dealer" means the member firm identified in the System as having a correspondent relationship with a clearing firm. "Introducing Broker-Dealer" means the member firm identified in the System as a party to a transaction that does not itself execute or clear trades. "System" is defined to mean the FINRA/NYSE Trade Reporting Facility for purposes of trades in designated securities as defined in Rule 6320B.
"Trade Reporting Participant" or "Participant" means any member of FINRA in good standing that uses the System. Unlike the FINRA/Nasdaq TRF, which operates as two legally distinct facilities under a single rule series, the FINRA/NYSE TRF is a single facility, so Rule 7210B does not require the dual-facility election and cross-facility-consequence provisions found in Rule 7200A.
Trade Reporting Participation Requirements
Rule 7220B provides that only members of FINRA in good standing may participate in the FINRA/NYSE Trade Reporting Facility. Participation is conditioned on execution of a Participant Application Agreement, membership in a clearing agency registered under the Exchange Act, compliance with applicable FINRA and SEC rules, maintenance of physical security over equipment, and acceptance and settlement of each trade the System identifies as having been effected by the participant, or a guarantee of that acceptance and settlement where settlement is made through a clearing member.
Before input, all Participants must obtain a unique identifying Market Participant Symbol from FINRA Operations. A Participant that is an Introducing Broker or Correspondent Executing Broker must identify its Clearing Broker and notify the System Operation Center of any change.
Trade Report Input
Rule 7230B governs the content and mechanics of trade reports submitted to the FINRA/NYSE Trade Reporting Facility. Where the facility is used to transfer a transaction fee between two FINRA members, the trade report must comply with Rule 7230B(i), reflecting a total price inclusive of the transaction fee for clearance purposes, while a separate price exclusive of the fee is publicly disseminated.
Rule 7230B addresses non-tape reports in more granular detail than the parallel ADF and FINRA/Nasdaq TRF rules: where both parties submit a clearing-only report to effect a "step-out," the member transferring out of the position reports a "step-out" while the member receiving the position reports a "step-in."
Trade Report Processing
Rule 7240B governs how the FINRA/NYSE Trade Reporting Facility matches and locks in reported trades: a Reporting Party's version of a trade is reviewed and accepted or declined by the contra party, resulting in a locked-in trade upon acceptance.
Obligation to Honor Trades
Rule 7250B requires that if a Participant is reported by the System as a party to a trade treated as locked-in and sent to DTCC, that party must honor the trade on the scheduled settlement date, notwithstanding any other agreement to the contrary.
Audit Trail Requirements
Rule 7260B ties to the data elements specified in Rule 7230B(d), imposing an ongoing obligation on member firms using the FINRA/NYSE Trade Reporting Facility to input that information accurately and completely.
Violation of Reporting Rules
Rule 7270B provides that failure of a Participant, or a person associated with a Participant, to comply with any rule or requirement of the System may be considered conduct inconsistent with high standards of commercial honor and just and equitable principles of trade, in violation of Rule 2010.
Termination of Access
Rule 7280B grants FINRA authority, upon notice, to terminate a Participant's access to the trade reporting service where the Participant fails to abide by any rule or operating procedure, fails to honor contractual agreements, or fails to pay promptly for services rendered.
Enforcement Context and Examination Priorities
The FINRA/NYSE TRF's competitive position relative to the larger FINRA/Nasdaq TRF has shaped its recent rule filing activity more than any enforcement development specific to member conduct.
Recent fee filings, including SR-FINRA-2026-003, have explicitly acknowledged that the Business Member operates the FINRA/NYSE TRF in a competitive environment and has sought pricing changes intended to prevent continued losses relative to its larger competitor. From an examination standpoint, member-level enforcement under Rule 7270B follows the same Rule 2010 bridge used throughout FINRA's trade reporting rules, and firms are expected to maintain Rule 3110 supervisory procedures addressing accurate use of the step-out/step-in reporting convention under Rule 7230B, since misreporting a position transfer as a new trade, or vice versa, can distort both audit trail accuracy and regulatory transaction fee calculations tied to reported trade data.
Examination Relevance and Key Takeaways
Candidates should retain that both the FINRA/Nasdaq TRF and the FINRA/NYSE TRF operate under the same SRO Member/Business Member LLC structure, with FINRA holding sole regulatory responsibility in both cases while Nasdaq and NYSE Market (DE), respectively, manage business affairs and pricing as Business Member, a structural feature distinguishing both TRFs from the FINRA-operated ADF and ORF.
Candidates should also retain the key structural divergence: unlike the FINRA/Nasdaq TRF, which consists of two legally distinct facilities under a single rule series with cross-facility disciplinary consequences, the FINRA/NYSE TRF is a single facility, so no dual-facility election mechanism exists here.
The step-out/step-in reporting convention under Rule 7230B for transferring positions between accounts via clearing-only reports is a mechanical detail specific to this series' non-tape report provisions. Finally, candidates should understand that Participants are not required to use any particular facility to satisfy their OTC NMS stock reporting obligations, and that the FINRA/Nasdaq TRF, FINRA/NYSE TRF, and ADF compete on price and functionality for that reporting volume, a competitive dynamic that directly explains the recurring fee-rule amendments affecting Rules 7610B and 7620B.
