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Friday, March 1, 2019

Equity Trader Alert #2019 - 19
FINRA/Nasdaq TRF to Change Trade Modifier Logic for Non-Tape Reports

Category:

  • System Impact

Markets Impacted:

Contact Information:

Resources:

What do firms need to know?

As a reminder, firms are responsible for complying with FINRA’s trade reporting rules and guidance when reporting to the FINRA/Nasdaq TRF. (Firms should refer to the FINRA Rule 6300A and 7200A series and FINRA Trade Reporting Frequently Asked Questions, available here.

Nasdaq will be changing trade modifier logic to systematically enforce FINRA trade reporting requirements for non-tape reports. Specifically, the only modifiers that are allowed on non-tape reports are 1) trade settlement type modifiers in Trade Modifier 1 and 2) modifiers used to designate that a trade is being reported for regulatory fee assessment purposes in Trade Modifier 4. (See FINRA Trade Reporting FAQ 300.1 & 600.1 for more information.)

The trade modifier logic changes will be effective as of Monday, April 29, 2019 in FINRA/ Nasdaq TRF Carteret and FINRA / Nasdaq TRF Chicago.

What is Changing?

As of Monday, April 29, 2019, for non-tape reports only:
  • Trade Modifier 2 (Trade Through Exempt) must be blank; trade report will be rejected if populated.
  • Trade Modifier 3 (Time Modifiers) must be blank; trade report will be rejected if populated.
  • The only valid values for Trade Modifier 4 (SRO detail sale condition) are: “away from market trade” and “trade effected pursuant to the exercise of an OTC option”. If any other value in Trade Modifier 4 is populated, the trade report will be rejected.

Testing Information for Customers

Firms are encouraged to test in advance of the production change.

Firms wishing to test the changes in modifier handling are encouraged to use the Nasdaq Test Facility for a free 30-day period beginning March 4th. Firms must contact ntfbilling@nasdaq.com via email prior to testing to begin the test period.

More Information

If you have any questions, please contact Nasdaq TRF Ops, Nasdaq Trading Services at +1 212 231 5180, or FINRA Market Operations at +1 866 776-0800 with any questions.

FINRATM, Trade Reporting FacilityTM and TRFTM are trademarks of Financial Industry Regulatory Authority, Inc.; FINRA/NASDAQ TRFTM is used under license for Financial Industry Regulatory Authority, Inc.


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