A form that is filed with the SEC by self-regulatory organizations (SRO) as an initial operation report or an amendment to an initial operation report, or a quarterly report for pilot trading systems operated by self-regulatory organizations. An SRO is a non-governmental body with regulatory authority over an industry, such as FINRA – the Financial Industry Regulatory Authority.


A pilot trading system means any trading system operated by a SRO that:
(a) has been in operation for less than two years
(b) is independent of any other trading system operated by an SRO
(c) has traded no more than 5% (or 1%) of the average daily volume of a U.S. security during at least two of the last four consecutive months
(d) during two of the last four consecutive months has traded no more than 20% of the average trading volume of all the trading systems operated by the SRO.

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