Reminder: Testing ORF and ADF Changes for Trade Reporting and T+2 Settlement

In accordance with the industry-led initiative to shorten the settlement cycle from three business days (T+3) to two business days (T+2), FINRA continues to make testing available in the NASDAQ Testing Facility (NTF) for associated changes to equity trade reporting. The amended rule is designed to enhance efficiency, reduce risk, and ensure a coordinated and expeditious transition by market participants to a shortened standard settlement cycle. Please refer to Regulatory Notice 16-09 and SR-FINRA-2016-047 for more information on the changes to trade reporting related to the shortened settlement cycle.  

“As technology improves, new products emerge, and trading volumes grow, it is increasingly obvious that the outdated T+3 settlement cycle is no longer serving the best interests of the American people,” said SEC Acting Chairman Michael Piwowar. “The SEC remains committed to ensuring that U.S. securities regulation is reflective of modern times, and in shortening the settlement cycle by one day, we aim to increase efficiency and reduce risk for market participants.”
Details on these changes and testing information are outlined below.

ORF and ADF Trade Reporting Changes

  • Updated Trade Modifier 1 definition of Regular
  • Updated Seller’s Option Days definition and valid values

TDDS Changes

  • Updated Seller’s Option Days definition and valid values

ADDS Changes

  • Updated Seller Days definition and valid values

General Testing Information

As of Monday, April 10, 2017, firms can test the modifications to support the trade reporting changes in the NASDAQ Testing Facility (NTF). The NTF environment is connected to NSCC’s test environment reflecting T+2 Settlement. Testing of T+3 Settlement is no longer available in NTF.

Note: The NTF environment is available for clients to test throughout the lifecycle of the T+2 Settlement software release, weekdays from April 10, 2017, through September 1, 2017.

FINRA will issue details regarding user acceptance testing of these changes in a future technical notice.

Please refer to Regulatory Notice 16-09 and SR-FINRA-2016-047 for more information.

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