General Securities Sales Supervisor (Series10) Practice Exam

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In an inter-dealer trade of Global Market stock, who is required to report the trade to the NASDAQ TRF?

Buy side
Sell side
Market maker
Non-market maker

The correct answer is: Market maker

In an inter-dealer trade, it is the market maker who has the responsibility to report the trade to the NASDAQ Trade Reporting Facility (TRF). Market makers play a crucial role in the trading ecosystem as they provide liquidity and facilitate transactions by being willing to buy and sell securities. When market makers engage in trading among themselves, they are tasked with reporting these trades to ensure transparency and maintain accurate market data. Their obligation to report is essential because it helps ensure that all transactions are accounted for, contributing to the accurate dissemination of information regarding trading activity and price movements in the market. In contrast, the buy side, sell side, and non-market makers do not carry this specific reporting responsibility in an inter-dealer context. While these parties may still have reporting obligations under different circumstances or for different types of trades, in this scenario, it is the market maker who holds the specific role of reporting to the NASDAQ TRF.