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Tuesday, February 2, 2010

Data Technical News #2010 - 4
FINRA To Extend Reporting Window for Trade Cancels and Trade Corrections, Effective April 12, 2010

Markets Impacted:

  • The NASDAQ Stock Market
  • UTP / SIP

Products Impacted:

  • Trade Data Dissemination Service (TDDS)
  • UTP Trade Report Data Feed (UTDF)

Contact Information:

What you need to know:

  • As outlined in FINRA Regulatory Notice #10-07, FINRA is removing the 5:15 p.m., ET, cut-off for the reporting of trade cancellations and trade corrections via the FINRA/NASDAQ Trade Reporting Facility (TRF) and the OTC Reporting Facility (ORF).
  • Effective Monday, April 12, 2010, FINRA will allow its members to report trade cancels and trade corrections for both regular market hours and extended market hours transactions until 8:00 p.m., ET.
  • As of April 12th, market data distributors may see adjustments to the consolidated high, low and last sale prices for NASDAQ-listed issues as well as OTC Bulletin Board (OTCBB) and other OTC equities until 8:00 p.m., ET.
  • For the most accurate data, NASDAQ OMX advises firms processing the UTP Trade Report Data Feed (UTDF) and Trade Data Dissemination Service (TDDS) products to use the final closing trade summary report.

What is changing?

Effective Monday, April 12, 2010, Financial Industry Regulatory AuthorityTM (FINRATM) member firms are no longer prohibited from reporting trade cancellations or trade corrections for regular market hour transactions to the FINRA/NASDAQ Trade Reporting FacilityTM (TRFTM) and the Over-the-Counter (OTC) Reporting Facility (ORF) after 5:15 p.m., Eastern Time (ET). As of April 12th, FINRA members will be permitted to report trade cancelations and trade corrections for both regular market hour and extended market hour transactions until 8:00 p.m., ET.

As a result of the FINRA/NASDAQ TRF change, market data distributors may see increased instances of consolidated high, low and last sale price changes for NASDAQ-listed issues on the UTP Trade Report Data FeedSM (UTDFSM) between 5:15 p.m. and 8:00 p.m., ET. In addition, market data distributors may begin to see changes to the consolidated high, low and last sale prices for OTC Bulletin Board® (OTCBB) and other OTC equity securities on the Trade Data Dissemination Service (TDDS) product between 5:15 p.m. and 8:00 p.m., ET.

For the most accurate trade summary data, market data distributors will need to process the final trade summary report on UTDF and TDDS. On UTDF and TDDS, the final trade summary reports are disseminated at 8:10 p.m., ET.

Will NASDAQ OMX modify its data feed specifications based on the April 12th FINRA rule change?

In its role as the data facilitator for the OTCBB and OTC markets, NASDAQ OMXSM has updated the TDDS specification document to reflect the new closing summary processing rules as of April 12th.

In its role as Security Information Processor (SIP) for NASDAQ-listed securities, NASDAQ OMX is already processing trade cancels and trade corrections from other UTP participants after 5:15 p.m., ET, so no UTDF documentation changes are needed.

Where can I find additional information?

For details on the FINRA rule change:

For more information on the market data impact of the FINRA rule change:

FINRA and TRF (Trade Reporting Facility) are trademarks of Financial Industry Regulatory Authority, Inc.; FINRA/NASDAQ TRFTM is used under license from Financial Industry Regulatory Authority, Inc.