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Thursday, August 31, 2023

Equity Trader Alert #2023 - 42
FINRA/Nasdaq TRF Specification Update for T+1 Settlement Change

Category:

  • System Impact

Markets Impacted:

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On February 15, 2023, the Securities and Exchange Commission (SEC) adopted rule changes to shorten the standard settlement cycle for most securities transactions from two business days after the trade date (T+2) to one business day after the trade date (T+1). The compliance date for the SEC rule changes will be May 28, 2024. Please refer to the SEC Website for additional information about this rule change.

Beginning on May 28, 2024, the FINRA/Nasdaq TRFs™ (FINRA/Nasdaq TRF Carteret and FINRA/Nasdaq TRF Chicago) will support the shortened standard settlement cycle for US Equity Reg NMS transactions, in accordance with this SEC rule change.

To prepare for the regulatory change, the updated FIX trade reporting and Equity Trade Journal (ETJ) specifications in support of T+1 settlement are provided with this notice.

Testing Opportunities

On weekdays starting December 4, 2023, firms will be able to commence testing for T+1 settlement on the FINRA/Nasdaq TRFs in the Nasdaq Test Facility whereby clearing trades will be sent to the NSCC Test Facility. Firms will be able to submit regular (T+1) settlement to the FINRA/Nasdaq TRF using TRF FIX ports. Testing with WorkX™, Equity Trade Journal, and TradeInfo will be available at a later date to be announced in a subsequent alert.

Customers are encouraged to test the FINRA/Nasdaq TRF T+1 settlement change.

  • FIX Testing in the Nasdaq Test Facility: Customers may perform TRF FIX 4.2 tests in the Nasdaq Test Facility for the T+1 settlement change beginning December 4, 2023. Customers may test free of charge for a 30 consecutive day period in the Nasdaq Test Facility by registering their firm MPID and start date with NTFbilling@nasdaq.com prior to the commencement of testing. Please indicate the T+1 testing purpose when submitting the fee waiver request.

    • More Information

    Please refer to the Specifications Page for more information on the FIX Trading Reporting and Equity Trade Journal T+1 Settlement Changes.

    To sign up for TRF FIX Ports, visit the FINRA Port Request Form.

    To sign up for the Equity Trade Journal reports, visit the Report HQ Request Form.



      Notes:

      1: ““FINRA/Nasdaq TRF” means the FINRA/Nasdaq TRF Carteret and the FINRA/Nasdaq TRF Chicago, depending on the facility to which the member firm reports.

      2: FINRA™, Trade Reporting Facility™ and TRF™ are trademarks of Financial Industry Regulatory Authority, Inc.; FINRA/NASDAQ TRF™ is used under license for Financial Industry Regulatory Authority, Inc.

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