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Friday, January 20, 2017

UTP Vendor Alert #2017 - 1
Informational Announcement: FINRA ADF Trade Reporting Only (TRO) firms

Markets Impacted:

Products Impacted:

Contact Information:

What you need to know:

  • FINRA rule amendments that took effect in 2016 could impact how you see trade reports from the FINRA Alternative Display Facility (ADF) via the UTP Data Services.
  • In 2016, FINRA amended its rules to expressly allow firms to use the ADF for trade reporting only (i.e., without quotation activity) purposes. Trade Reporting Only (TRO) firms may use the ADF as either their primary or secondary trade reporting facility.

What you need to know?

The FINRA Alternative Display Facility (ADF) has traditionally been used as a quotation and trade reporting facility for FINRA members, but in 2016, FINRA amended its rules to expressly allow firms to use the ADF for trade reporting purposes only (i.e., without quotation activity). Firms may use the ADF as either their primary or secondary trade reporting facility. See FINRA Regulatory Notice 16-33.

How will the affect the UTP Data Services?

Currently, there are no active ADF Trade Reporting Only (TRO) firms. Please refer to the ADF Participant page for updates or subscribe to the ADF Notifications list for important ADF system changes, news and information. Once FINRA approves a TRO the UTP Data Services would begin to disseminate any reported FINRA ADF trade data as follows:

  • UTP Trade Data Services (UTDF): FINRA ADF trade transactions will be disseminated with the “D” Market Center originator identifier and the sub-market center identifier of “space” via UTDF.

As a reminder, there are two other FINRA Trade Reporting Facilities: the FINRA/Nasdaq TRF® and the FINRA/NYSE TRF® that are active and reporting via UTP Data Services today. Both TRFs will continue to report trades for dissemination over UTDF with the Market Center ID “D” and the following Sub-Market Center Identifiers:

  • “Q” for the FINRA/Nasdaq TRF
  • “N” for the FINRA/NYSE TRF

Who should I contact for additional information?