Trade reporting

The practice of announcing the trade or issue of a security to the appropriate regulator. Trade reporting is mandatory and serves to increase transparency in the market.It should be done within some time frame limit.
By checking that trades are conducted in a fair and orderly manner and in accordance with market rules, regulators are able to meet their objectives of ensuring investor protection and safeguarding the reputation and integrity of the marketplace.

Trade reporting can be conducted via a number of mechanisms, such as:

• the automatic forwarding of trade details from computerized exchange trading systems
• transmission of messages via systems such as TRAX and Omgeo, which also act as transaction reporting systems
• transmission of messages via NCSDs, who then forward the trade details to the regulatory authority

Regulators analyze trades in an attempt to identify any possible cases of market manipulation, insider trading, or other breaches of market rules and regulations. Due to the sheer volume of transactions, many markets have automated systems in place that attempt to detect dubious trading patterns.