FINRA will be requiring that members include the price on all route reports and a short exempt identifier, if applicable.  FINRA had proposed certain additional amendments to its trade reporting rules, including those applicable to OTC Equity Securities, as defined in Rule 6420 - i.e., non-NMS stocks - to clarify certain existing reporting requirements. 

1. To clarify that the short sale indicator (and short sale exempt indicator, for NMS stocks) is required on reports of a “cross,” as well as reports of a “sell.”
2. To codify the existing requirement that the information listed in the rule must be provided for each trade that is reported to FINRA.

    Recent SEC amendments to Regulation SHO (2/26).   Among other things, the SEC implemented a short sale circuit breaker for NMS stocks triggered by a 10% or more decrease in the price of the security from such security’s closing price.  Once the circuit breaker is triggered, Reg SHO is designed to generally prohibit the execution or display of short sale orders of a covered security at a price that's less than or equal to the current NBB for the remainder of that day and the following day. 

In addition to the short sale price test restriction, the amendments to Reg. SHO reinstituted a short sale exempt marking category, allowing a broker-dealer to mark certain qualifying sell orders "short exempt."  Provisions allowing an order to be marked "short exempt" once the circuit breaker has been triggered, include:

• Broker-dealer policies and procedures provision
• Seller’s delay in delivery.
• Odd lot transactions.
• Domestic arbitrage.
• International arbitrage.
• Over-allotments and lay-off sales Riskless principal transactions.
• Transactions on a VWAP basis.