In order to ensure that customer orders are transmitted to the marketplace in a timely manner, FINRA developed the Order Audit Trail System (OATS). The OATS system tracks an order through each stage of its life from receipt to execution or cancellation. Each firm is required to synchronize clocks used for time stamping and reporting daily to the National Institute of Standardized Time’s atomic clock to within 3 seconds and must display military time in hours, minutes and seconds as 00:00:00.

Firms are required to submit daily electronic OATS reports to FINRA. OATS reports must be made the same day an order was received or on the day information becomes available to the firm. Daily electronic OATS reports can be made for single or multiple orders. Information collected on the OATS report includes:

  • Customer or firm order
  • Date and time of receipt
  • Order ID
  • Terms of the order (i.e. buy, sell, sell short, security, price, shares, account type and handling instructions)
  • If the order was received manually or electronically
  • If the order was routed manually or electronically
  • Where the order was routed for execution
  • If the order was an intermarket sweep order
  • Any modifications to the order including the date and time of any modifications
  • Execution information including partial executions, price, date, time and capacity in which the firm acted in the trade

Need Help Passing Your Series 57 Exam?



Electronic Blue Sheets

Related Articles
  1. Trading

    The 2016 Outlook for Wheat and Oat Futures

    Oats futures shows greater upside potential than wheat futures in 2016.
  2. Trading

    The Basics Of Trading A Stock

    Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
  3. Investing

    Explaining Market Orders

    A market order is the most common order used to purchase a financial security.
  4. Trading

    Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
Frequently Asked Questions
  1. How can I avoid paying taxes on my Social Security income?

    Learn how to calculate the percentage of Social Security income benefits that may be taxable and discover strategies to reduce ...
  2. Can you pay off your Best Buy credit card in store?

    Learn how you can pay your BestBuy credit card in stores using cash or check. You can also pay by mail, online or over the ...
  3. How can you cancel your Walmart credit card?

    Learn how to close your Walmart credit card or Walmart MasterCard, and read details about the process of closing those credit ...
  4. Who is eligible for Canada Pension Plan benefits?

    Learn more about the Canada Pension Plan, who contributes to the plan and who can receive standard, disability, early retirement ...
Trading Center