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Wednesday, February 7, 2024

Equity Trader Alert #2024 - 12
FINRA/Nasdaq TRF Update for T+1 Settlement Change

Category:

  • System Impact

Markets Impacted:

Contact Information:

Resources:

As announced in ETA 2023-42, the FINRA/Nasdaq TRFs™ (FINRA/Nasdaq TRF Carteret and FINRA/Nasdaq TRF Chicago) will support the shortened standard settlement cycle for US Equity Reg NMS transactions in accordance with SEC rule changes. The compliance date for the SEC rule changes is May 28, 2024. Please refer to the SEC Website for additional information.

What is Changing:

WorkX™ will be available in the Nasdaq Test Facility (NTF) to test the standard settlement cycle change from two days after trade date (T+2) to one (T+1), as well as non-standard settlement cycles and the FINRA/Nasdaq TRF auto-lock time change from 2 pm to 12 pm Eastern Time for match-eligible clearing trades (in accordance with FINRA Rule 7240(a) as of February 20, 2024.

Firms will also be able to submit T+1 settlement transactions to the FINRA/Nasdaq TRFs through TRF FIX or WorkX in the Nasdaq Test Facility (NTF) whereby clearing trades will be sent to the NSCC Test Facility.

Testing Opportunities:

Customers are encouraged to test the T+1 settlement changes on the FINRA/Nasdaq TRFs ahead of the compliance date.

WorkX will be available for free testing in the Nasdaq Test Facility (NTF) effective February 20th, 2024. New users can sign up for the WorkX NTF access via the WorkX Request Form.

FIX Testing in the Nasdaq Test Facility: Customers may perform TRF FIX 4.2 tests in the Nasdaq Test Facility for the T+1 settlement change. Customers may test free of charge for a 30 consecutive day period in the Nasdaq Test Facility by registering their firm MPID and start date with NTFbilling@nasdaq.com prior to the commencement of testing. Please indicate the T+1 testing purpose when submitting the fee waiver request. TRF FIX Port Testing has been available since December 4, 2023. For TRF FIX Port Requests, sign up here.

The updated FIX trade reporting and Equity Trade Journal (ETJ) specifications in support of T+1 settlement are provided on Nasdaq’s Specifications Page.

Equity Trade Journal testing availability will be announced in the near future. To sign up for the Equity Trade Journal reports, visit the Report HQ Request Form.


    Notes:

    “FINRA/Nasdaq TRF” means the FINRA/Nasdaq TRF Carteret and the FINRA/Nasdaq TRF Chicago, depending on the facility to which the member firm reports.

    FINRA™, Trade Reporting Facility™ and TRF™ are trademarks of Financial Industry Regulatory Authority, Inc.; FINRA/NASDAQ TRF™ is used under license for Financial Industry Regulatory Authority, Inc.

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