FINRA Rule 11900 requires members or their agents that are participants in a registered clearing agency to use the facilities of a registered clearing agency to clear over-the-counter transactions between members in corporate debt securities. FINRA is proposing to amend Rule 11900 to create an exception for over-the-counter transactions between members where:
The same carrying member is clearing and settling both the purchase and sale side of the transaction.
Clearance and settlement occur through book-keeping transfers between the parties' accounts at the carrying member.
The proposed rule change will become effective on February 15, 2020.