Search:
   

Monday, February 1, 2016

Equity Trader Alert #2016 - 23
Nasdaq Updates Retail Attestation Form

Category:

  • Pricing

Markets Impacted:

Contact Information:

Effective immediately, Nasdaq has posted an updated Retail Attestation Form.

The new form updates supervisory requirements related to retail orders. Specifically, the form is updated and clarifies language to say that if an Applicant does not itself conduct a retail business, but routes Retail Orders on behalf of another broker-dealer, Applicant’s WSPs must be reasonably designed to assure that the orders it receives from such other broker-dealer that are designated as Retail Orders meet the definition of a Retail Order.

Also, the language is clarified to say that the Applicant must (i) obtain an annual written representation, in a form acceptable to the Exchange, from each other broker- dealer that sends the Applicant’s orders to be designated as Retail Orders that entry of such orders as Retail Orders will be in compliance with the requirements specified by the Exchange; and (ii) monitor whether Retail Order flow routed on behalf of such other broker-dealers meets the applicable requirements.

Additionally, a Member that acts as a clearing broker-dealer is not required to obtain an annual written representation from correspondent or introducing broker-dealers for whom it clears if the Member itself is designating the orders that originate from the correspondent or introducing broker-dealers as meeting the definition of a “Retail Order” for purposes of the Designated Retail Order Attestation Form. Members are therefore not required to obtain the annual written attestation from correspondent or introducing broker-dealers for whom the Member acts as clearing broker-dealer if the Member (i) designates the orders originating from the correspondent or introducing broker-dealer as meeting the definition of a “Retail Order” and (ii) can independently verify that substantially all orders designated as Retail Orders meet the qualifications for such orders under the Retail Order rule.


Please follow Nasdaq on Facebook RSS and Twitter.

Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 90 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to approximately 3,900 total listings with a market value of approximately $13 trillion. To learn more, visit: business.nasdaq.com.

View NASDAQTrader.com Mobile