Recordkeeping and Reporting Requirements for Trading Systems Operated by Brokers and Dealers

The Securities and Exchange Commission is adopting Rule 17a-23 ("Rule') and Form 17A-23 under the Securities Exchange Act of 1934 to establish recordkeeping and reporting requirements for brokers and dealers that operate automated trading systems. Under the Rule, registered broker-dealers that sponsor these systems would be required to maintain participant, volume, and transaction records, and to report system activity to the Commission and, in certain circumstances, to an appropriate self-regulatory organization.