FINRA/Nasdaq TRF to Expand Carryover of Match-Compare Trade Reports and Enforcement of Reversal Logic for Match-Compare Trade Reports
What firms need to know?
Nasdaq will be expanding the types of trade reports that will be carried over to the next day and be eligible to be broken. Nasdaq will also enforce logic pertaining to the submission of Breaks and Reversals. This functionality will be effective as of Monday, November 7th, 2016.
The changes discussed below apply only to trade reports that are submitted to the FINRA/Nasdaq TRF for match/compare.
What is Changing?
The TRF will expand carryover of match/compare trading activity:
- Accepted trades shall carryover to the next day and be eligible to be Broken on T+1
- Trades in a “Pending Break” state shall carryover to the next day and be eligible to be Broken on T+1
- Matched/Compared trades shall carryover to the next day and be eligible to be Broken on T+1
Trades that are Auto Locked on T+1(@ 2:30pm) can be broken on T+1 (i.e. any time after 2:30 pm until the end of day).
The TRF will also introduce reject logic when submitting Reversals on Match/Compare trades:
- Reversals cannot be submitted on T+1
- Reversals can only be submitted on T+2 and beyond
NTF Testing Information
The highlighted changes in the Nasdaq Test Facility (NTF) are currently available for testing by market participants.
Street Wide Testing Information
The street-wide testing schedule has been updated as follows:
- Saturday, September 10th
- Saturday, October 8th
- Saturday, November 5th