TBA Transaction and SPDS Testing Information

Beginning Monday, September 24, 2012, through Friday, November 2, 2012, FINRA will allow firms to test the modifications to support securitized products TBA trade reporting and dissemination. The modifications include a change to the required reporting timeframe of TBA transactions, as well as the dissemination of eligible TBA transactions via the new Securitized Products Dissemination Service (SPDS) data feed (available to authorized subscribers), scheduled to go live in production on Monday, November 5, 2012. See Regulatory Notice 12-26 for additional details. 

 

In addition to the NTF testing, FINRA has tentatively scheduled two production user acceptance tests for Saturday, October 13, 2012, and Saturday, October 20, 2012. FINRA will issue additional details regarding these tests as the dates approach.


New Trade Reporting Requirements

Effective November 5, 2012, TBA trade reporting requirements will change as detailed below. Firms should test their software programs to ensure TBA trades are reported within the required timeframe.1

 

SubjectInformation
Trade Reporting –
TBA for Good Delivery (GD)
Trades (including corrections) must be reported within 45 minutes of execution.
Trade Reporting –
TBA Not for Good Delivery (NGD)
Trades (including corrections) must be reported within 120 minutes of execution.

Note: TBA GD and TBA NGD securities are identified in the Sub Product Asset Code field within the SP API Security Master File for TBA securities and the TRAQS website Security Scan. This information is currently available in the Production and NTF reference datasets.

 

Testing Details—NTF

Authorized firms may enter and process TBA test transaction data in the NASDAQOMX Testing Facility (NTF) and download a new Securitized Products Application Programming Interface file for TBA closing prices.

 

The IP and port information below is for connecting to SPDS in the NTF environment.2

 

SubjectInformationContact
Test registrationRequiredFINRA Product Management
Testing hours Mon – Fri 8 a.m. – 6 p.m. ET 
Connectivity requirements (NTF trade reporting)To enter test trades and receive acknowledgements via FIX and CTCI, ensure you are routing messages to the NTF environment.

To enter test trades of TBAs and view transactions on the TRAQS test website:
https://www-ntf.finratraqs.org/
 
The TRAQS website will be enhanced to display Time and Sales data (for authorized users) for TBA trades which were disseminated. This functionality will be made available for testing in NTF beginning on October 1, 2012.
 
Test Connectivity requirements (SPDS)To receive streaming test TBA data, firms may purchase a circuit to directly connect to the feeds or contact their extranet provider to request access to the test data stream.
SPDS:
Group IP = 233.56.159.201
Port = 50084
Source IP = 206.200.23.21
To purchase a circuit, contact NASDAQ OMX Subscriber Services at (212) 231-5180; Option #3

If you connect via extranet, please contact your provider.
Web APITo process the test closing prices for TBA securities traded for a specific day:
https://download-ntf.finratraqs.org

Query parameters in the API specification must be used in order for test reference data to be published.
 

 

Specifications


Please direct questions and comments regarding this notice to FINRA Product Management or call (866) 899-2107.

 



 

1 The pilot period will run from November 5, 2012, through May 10, 2013. The reporting timeframes will then change after May 10, 2013, as outlined in Regulatory Notice 12-26.

 

2 There will be no testing fees charged during the testing period.