My firm operates a convertible bond department. Does my firm have to report information to OATS about orders in convertible bonds?
The OATS Rules apply to orders in Nasdaq Stock Market equity securities. Section 3(a)(11) of the Securities and Exchange Act of 1934 and SEC Rule 240.3a11-1 define “equity security” as any security convertible into stock or a similar security. Convertible bonds can be converted into equity securities. Therefore, orders for convertible bonds listed on Nasdaq are subject to OATS reporting.
Related Questions
- How will a receiving firm know if a firm submitting orders to it does not meet the definition of an OATS Reporting Member under NASD Rule 7410?
- My firm operates a convertible bond department. Does my firm have to report information to OATS about orders in convertible bonds?
- Does my firm have an obligation to report orders placed on OptiMark to OATS?
