Which of the following is true about off-order-book trades?

Which of the following is true about off-order-book trades?

• A. They do not require reporting
• B. They must be reported using a Transaction Report
• C. They must be reported using a Trade Report
• D. They are reported only if the trade is above threshold

Answer: (C)

Off-order-book trades are deals negotiated directly between counterparties and executed outside the visible order book. Even though they don’t appear in the public book, regulators require these trades to be reported to ensure complete market transparency and oversight. The correct reporting channel for these negotiated, non-displayed trades is a Trade Report. This type of report captures the details of the trade to feed into market surveillance and the official trade register. A Transaction Report isn’t used for off-order-book trades, and there’s no threshold that would exempt reporting—the obligation applies regardless of trade size.

Off-order-book trades are deals negotiated directly between counterparties and executed outside the visible order book. Even though they don’t appear in the public book, regulators require these trades to be reported to ensure complete market transparency and oversight.

The correct reporting channel for these negotiated, non-displayed trades is a Trade Report. This type of report captures the details of the trade to feed into market surveillance and the official trade register. A Transaction Report isn’t used for off-order-book trades, and there’s no threshold that would exempt reporting—the obligation applies regardless of trade size.