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Wednesday, January 7, 2015

Nasdaq Fund Network #2015 - 1
Nasdaq to Introduce New MFQS Footnote Codes

System Impacted:

Interfaces Impacted:

Inbound: Outbound:

Contact Information:

What you need to know:

  • Nasdaq will introduce three new MFQS Footnote codes on or about Monday, April 13, 2015.
  • UPDATED 3/6/2015: Nasdaq has moved the release date for the MFQS Footnote code release to April 13, 2015 (from March 30, 2015).

What is happening?

To facilitate price reporting of money market funds and interval mutual funds, Nasdaq will add the following Footnote codes to the MFQS service on or about Monday, April 13, 2015:

Footnote Code Definition Purpose
New Codes for Money Market Funds
G Redemption Gate

Denotes if a money market fund has temporarily suspended shareholder redemptions.

Under the amended SEC Money Market Reform Act, the SEC allows the board of directors of a non-governmental money market fund to temporarily suspend shareholder redemptions for up to 10 business days in a 90 day period (“redemption gate”) if the level of the fund’s weekly liquid assets falls below 30% of the fund’s total assets.

Government money market funds are permitted, but not required, to impose liquidity fees and redemption gates.

For more information on the SEC Money Market Reform Act amendments, please refer to the SEC website at http://www.sec.gov/rules/final/2014/33-9616.pdf.

L Liquidity Fee

Denotes if a money market fund is imposing a liquidity fee.

Under the amended SEC Money Market Reform Act, the SEC allows the board of directors of a non-government money market fund to impose a liquidity fee of up to 2% if the level of the fund’s “weekly liquid assets” falls below 30% of the fund’s total assets.

The rule also requires non-government money market funds to impose a 1% liquidity fee if the fund’s level of weekly liquid assets falls below 10% of total assets, unless the fund’s board of directors determines that it would not be in the fund’s best interest to impose the fee or determines to impose a lower or higher (up to 2%) liquidity fee.

Government money market funds are permitted, but not required, to impose liquidity fees and redemption gates.

For more information on the SEC Money Market Reform Act amendments, please refer to the SEC website at http://www.sec.gov/rules/final/2014/33-9616.pdf.

New Codes for Mutual Funds
I Repurchase Offer Period

Denotes that a repurchase offer period is in effect for an interval fund.

An interval fund is a type of investment company that periodically offers to repurchase its shares from shareholders. That is, the fund periodically offers to buy back a stated portion of its shares from shareholders. Shareholders are not required to accept these offers and sell their shares back to the fund.

During repurchase offer periods, interval funds have an increased frequency of MFQS price reporting.

For more information on interval funds, please refer to the SEC website at http://www.sec.gov/answers/mfinter.htm.

Where can I find the updated MFQS interface specifications?

Nasdaq has posted the MFQS interface specifications on the Nasdaq Trader website. The URL links to the impacted MFQS products are provided below for your convenience.

Inbound:
Outbound:

Will Nasdaq be making any other changes as part of the MFQS release?

Yes. As part of the upcoming release, Nasdaq will also modify the secured MFQS website landing page to make it easier for MFQS subscribers to stay informed of MFQS system changes and upcoming events. Nasdaq also plans to move MFQS instrument level statistics to the main landing page as part of the website changes.

Will Nasdaq retire MFQS 0040 inbound message formats as part of this release?

Based on customer requests, Nasdaq has postponed the retirement date for the MFQS 0040 data formats to June 30, 2015.

Until June 30th, Nasdaq will support the legacy MFQS 0040 data formats “as is”. Nasdaq will not support the new Footnote codes via the MFQS 0040 data formats.

What is the testing and release schedule for the MFQS change?

Nasdaq plans to implement the new MFQS Footnote codes on or about Monday, April 13, 2015.

Nasdaq is in the process of finalizing its testing and release schedule for this MFQS release. Nasdaq expects to offer two Saturday testing opportunities for MFQS subscribers to test the new MFQS functionality prior to the release. Once the MFQS release schedule is finalized, Nasdaq will post a MFQS News item with testing dates.

Where can I find more information?

Please follow Nasdaq on Facebook RSS and Twitter.

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