OATS Changes for Members that Operate Tick Size Pilot Trading Centers

Updated January 11, 2016

This OATS Report is being issued to provide information to Reporting Members that operate a Trading Center under the Plan to Implement a Tick Size Pilot Program ("Plan") and whose Designated Examining Authority (“DEA”) is FINRA that will be required to submit data pursuant to Items I and II of Appendix B of the Plan ("Tick Size Pilot Members"). FINRA filed a proposed rule change that would require Tick Size Pilot Members to comply with the Data Collection requirements contained in Items I and II of Appendix B of the Plan by reporting additional data elements to OATS for orders and executions involving Pilot Securities under the Plan. The additional data elements that Tick Size Pilot Members would be required to include with their existing OATS submissions involving Pilot Securities are provided below. A new version of the OATS Reporting Technical Specifications incorporating all of the changes reflected below was published on Monday, January 11, 2016. These changes will be available in the CT environment beginning February 22, 2016 and the production environment beginning April 4, 2016.

It is important to note that if a FINRA member does not operate a Trading Center in a Pre-Pilot Data Collection Security or Pilot Security or for whom FINRA is not the DEA, no OATS changes are required.  Such members can continue submitting as they do today with no changes at all (do not add the new fields) or may add the new fields and leave them blank.   

Tick Size Specific Data Elements Required on OATS Reports


New (NW), Combined Order/Route (OR) and Cancel/Replace (CR) reports:

Pilot Information

OATS Field Name

Data Type

Instructions

Tick Size Pilot Flag

*new field

Tick Pilot Participation Flag

Alphanumeric(1)

Applicable for Tick Size Pilot Study; Required if the firm is a trading center in a Pre-Pilot Data Collection Security or Tick Size Pilot security

Values:

  • Blank – not a Tick Pilot Participant
  • ‘T’ – Tick Pilot Participant; not an ADF Participant.
  • ‘A’ – Tick Pilot Participant and ADF Participant.

Display Size

 *new field

Display Size

Numeric(11)

Applicable for Tick Size Pilot Study; Required if the Tick Pilot Participation Flag = ‘A’ 

Values: Any integer greater than zero.  A fractional share order of less than one (1) share must be rounded up to one (1).

Routable Flag

*new field

Routable Flag

Alphanumeric(1)

Applicable for Tick Size Pilot Study; Required if the Tick Pilot Participation Flag is populated.

Values: ‘Y’ or ‘N’, Case sensitive.

If the order is Routable, set equal to ‘Y’; otherwise set to ‘N’.

ISO Flag

IOC (Y/N)

Indicator for Special Handling Instructions

Special Handling Code 1-5

Desk Special Handling Code 1-5

Alphanumeric(3)

New allowable values will be added:

  • SLD - Slide
  • CPR – Counterparty Restriction

Existing values will be used to specify:

  • Trading Center received ISO order
  • Immediate or Cancel
  • Discretion
  • Minimum Quantity
  • For orders where the Tick Size Flag is populated, the DIR code should also be populated for orders where the broker-dealer is providing direct market access to a non-broker-dealer customer.

 

Combined Order/Execution (OE) reports:

Pilot Information

OATS Field Name

Data Type

Instructions

Tick Size Pilot Flag

*new field

Tick Pilot Participation Flag

Alphanumeric(1)

Applicable for Tick Size Pilot Study; Required if the firm is a trading center in a Pre-Pilot Data Collection Security or Tick Size Pilot security

Values:

  • Blank – not a Tick Pilot Participant
  • ‘T’ – Tick Pilot Participant; not an ADF Participant.
  • ‘A’ – Tick Pilot Participant and ADF Participant.

Display Size

 *new field

Display Size

Numeric(11)

Applicable for Tick Size Pilot Study; Required if the Tick Pilot Participation Flag = ‘A’ 

Values: Any integer greater than zero.  A fractional share order of less than one (1) share must be rounded up to one (1).

Routable Flag

*new field

Routable Flag

Alphanumeric(1)

Applicable for Tick Size Pilot Study; Required if the Tick Pilot Participation Flag is populated.

Values: ‘Y’ or ‘N’, Case sensitive.

If the order is Routable, set equal to ‘Y’; otherwise set to ‘N’.

Retail Investor Order Flag

*new field

Retail Investor Order Flag

Alphanumeric(1)

Applicable for Tick Size Pilot Study; Required if the Tick Pilot Participation Flag is populated.

Values: ‘Y’ or ‘N’, Case sensitive.

If the trading center is relying upon the Retail Investor Order exception to Test Groups Two and Three with respect to the order, set equal to 'Y'; otherwise set to 'N'.

ISO Flag

IOC (Y/N)

Indicator for Special Handling Instructions

Special Handling Code 1-5

Desk Special Handling Code 1-5

Alphanumeric(3)

New allowable values will be added:

  • SLD - Slide
  • CPR – Counterparty Restriction

Existing values will be used to specify:

  • Trading Center received ISO order
  • Immediate or Cancel
  • Discretion
  • Minimum Quantity
  • For orders where the Tick Size Flag is populated, the DIR code should also be populated for orders where the broker-dealer is providing direct market access to a non-broker-dealer customer.

 

Desk (DS) reports


Pilot Information

OATS Field Name

Data Type

 Instructions

ISO Flag

IOC (Y/N)

Indicator for Special Handling Instructions

Desk Special Handling Code 1-5

Alphanumeric(3)

New allowable values will be added:

  • SLD - Slide
  • CPR – Counterparty Restriction

Existing values will be used to specify:

  • Trading Center received ISO order
  • Immediate or Cancel
  • Discretion
  • Minimum Quantity
  • For orders where the Tick Size Flag is populated, the DIR code should also be populated for orders where the broker-dealer is providing direct market access to a non-broker-dealer customer.

 

Execution (EX) reports


Pilot Information

OATS Field Name

Data Type

 Instructions

Retail Investor Order Flag

*new field

Retail Investor Order Flag

Alphanumeric(1)

Applicable for Tick Size Pilot Study; Required if the Tick Pilot Participation Flag is populated.

Values: ‘Y’ or ‘N’, Case sensitive.

If the trading center is relying upon the Retail Investor Order exception to Test Groups Two and Three with respect to the order, set equal to 'Y'; otherwise set to 'N'.