Friday, January 13, 2023

UTP Vendor Alert #2023 - 2
FINRA Alternative Display Facility (ADF) Plans to Introduce an ADF Quoting Participant

Markets Impacted:

Products Impacted:

Contact Information:

What you need to know:

  • The Financial Industry Regulatory Authority (“FINRA”) has informed the UTP Securities Information Processor (UTP SIP) that it plans to certify a new participant to begin using its Alternative Display Facility (ADF) for quotation and trading of NASDAQ-listed securities under the Unlisted Trading Privileges (UTP) Plan on or after Monday, March 27, 2023, subject to regulatory approval and related announcements.
  • As outlined in the UTP data service specifications, the FINRA ADF will be identified by the Market Center Originator ID code “D”, within the message header of the UTP Quotation, FINRA ADF Market Participant Quote and UTP Trade messages.
  • Once certified, the IntelligentCross ATS will become an active quoting and trade reporting participant on the FINRA ADF and will be identified by the FINRA Market Participant ID (FINRA MPID) of INCR within the UTP Data services.

What has been announced?

The Financial Industry Regulatory Authority (“FINRA”) has informed the UTP Securities Information Processor (UTP SIP) that it plans to certify a new participant to begin using its Alternative Display Facility (ADF) for quotation and trading of NASDAQ-listed securities under the Unlisted Trading Privileges (UTP) Plan on or after Monday, March 27, 2023, subject to regulatory approval and related announcements.

How will this affect the UTP data feeds?

Beginning on or after Monday March 27, 2023 (subject to regulatory approval and related announcements), the FINRA ADF data will be disseminated via the following UTP Data Service messages:

UTP Quotation Messages (Long Form “QF”): UTP Data Service subscribers will receive FINRA BBO quotation with associated FINRA ADF participant attribution via UTP Quote Message Long-form (QF) format for NASDAQ-listed securities. FINRA ADF quotes will be identified by the market center originator identifier value of "D" in the UQDF message header. In addition, firms will also see the "D" market center originator identifier value in the National Best Bid and Offer (NBBO) Appendages and Session Close Recap Message (AR) message formats.

FINRA ADF MPID Appendage: If the FINRA ADF market center’s BBO quotation impacts their single participant at either the Bid or Ask side of their market for the issue, a FINRA ADF MPID Appendage will be added to the original long-form message. This appendage will include the FINRA ADF’s single participant for its best bid and size and/or the FINRA ADF’s single participant for its best ask and size.

Effective with this activation, the IntelligentCross ATS will be identified by the FINRA MPID of "INCR".

FINRA ADF Market Participant Quotation Message (QM): For FINRA ADF quotes that do not affect the NBBO or FINRA BBO a FINRA ADF Market Participant Quotation Message will be sent.

UTP Trade Messages (all formats): FINRA ADF trade messages will be identified by the market center originator identifier value of “D” and the Submarket Center ID field will be populated with to indicate the trade originates from the FINRA ADF.

Will FINRA offer any testing opportunities?

Yes, the UTP SIP in coordination with FINRA, will support the following testing opportunities associated with the activation:

Type of Testing Scheduled Dates Description
Evening Testing Nightly from Monday, February 27, 2023, through production launch Each weeknight between 9:30 pm – 10:30 pm, the test data will be available on the “Test Broadcast” IP Multicast channels. No registration is required to participate in evening testing.
Saturday User Acceptance Test (UAT) Subject to FINRA ADF schedule maintained on their web site

Saturday, January 21, 2023
Saturday, February 25, 2023;
Saturday, March 11, 2023; and
Saturday, March 25, 2023
FINRA will allow its new participant to enter data and process this through the SIP. As it is generated, the UTP SIP will disseminate the test data via the UTP data services production channels.
Production Release On or after March 27, 2023 (subject to regulatory approval and related announcements) in test securities.
Subject to FINRA ADF schedule maintained on their web site
Production implementation of the new FINRA ADF participant as an active quoting participant. Refer to the FINRA ADF web site for detailed roll out plans.

Who should I contact for additional information?