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Thursday, March 28, 2024

UTP Vendor Alert #2024 - 5
SIP Fractional Share Trade Reporting Enhancements

Markets Impacted:

Products Impacted:

Contact Information:

What you need to know:

  • As announced in FINRA Trade Reporting Notice 3/22/24, FINRA has provided advance notice of future updates to its equity trade reporting guidance to support reporting of fractional share quantities to FINRA’s equity trade reporting facilities.

  • UTP SIP will be making changes to support fractional share trade reporting on the same timeline as the effective date of FINRA’s updated trade reporting guidance, which is currently expected to be no earlier than the first calendar quarter of 2025.

  • The UTP SIP changes are described in updated specifications, which are available on the UTP Plan webpage and will be implemented as a “Hot Cut” release.

What is Changing?

This initiative will enhance the existing UTP SIP product to support fractional share trade reporting. The UTP Processor will make the following new implementation to facilitate this Change Request.

UTP Trade Data Service Changes

  • Fractional share amounts as low as one millionth of one share (0.000001 shares) will be supported for any trade report or subsequent action on a trade report.
  • New UTDF messages supporting both whole and fractional share trades (as a single volume field) will be created to replace existing UTDF messages:
    • Trade report (current day)
    • Trade cancel / error
    • Trade correction
    • Prior-day as-of trade report
    • Closing trade summary
    • Total consolidated and market center volume

Please review the new message format changes that will be introduced with the “Hot-Cut” release.

Which Data Feed Recipients need to test and be prepared for the new UTP Trade Data “Hot-Cut” Services?

Direct Data Feed Recipients need to be prepared for the new UTP Trade Data Services. Indirect Data Feed Recipients should experience a seamless transition managed by their Data Feed Provider.

UTP Trade Messages Cutover Requirements
  • Migration to the new UTDF messages shall be a “hot cut”, upon day one of the enhancement, new messages shall replace all existing messages pertaining to trade reports and share volume and shall be inclusive of all trades reported (i.e., whole share only, fractional share only and whole with fractional component reporting).
  • All direct data recipients must be prepared to read the new messages on this cutover date or risk losing access to trade data.

What is the timeline for this enhancement?

The UTP SIP and SIAC are working jointly, in consultation with the UTP Operating Committee and FINRA, to establish a release schedule that ensures a smooth transition. The production-ready environment is tentatively scheduled to launch Q1 2025.

The UTP SIP and SIAC will work closely with the industry to ensure participation in the testing and readiness.

What are the testing opportunities?

The UTP Processor will post additional Vendor Alerts, as more details become available around implementation schedules and testing opportunities.

Who should I contact for additional information?