OATS Report - April 12, 2002

April 12, 2002

When reporting to OATS, Reporting Members are required to provide a "Received Method Code" on order events including New Order Reports (NW), Cancel/Replace Reports (CR), Combined Order/Execution Reports (OE), and Combined Order/Route Reports (OR). Originally, the Received Method Code was designed to identify how orders were actually received by reporting members and ECNs. Later, there was a modification to include the receipt of orders from non-member broker/dealers. Currently, the Received Method Code is designed to record specific types of information that may depend upon how an order was received, who received it, who transmitted it, or if the information is unknown (under limited circumstances).

The five available codes and when they should be used are as follows:

"E" - Electronic, non-ECN - This code should be used by non-ECNs (i.e., NASD registered broker/dealers including ATSs), for orders received electronically (i.e., via an electronic order routing or execution system).

"N" - Non-electronic, non-ECN - This code should be used by non-ECNs (NASD registered broker/dealers including ATSs) for orders received non-electronically (e.g., Manual-over the phone, in person).

"C" - ECN - This code should be used exclusively by ECNs for all orders received, regardless of how they were received.

"M" - Non-Member Firm - This code should be used by non-ECNs (NASD registered broker/dealers including ATSs) who receive the order from a broker/dealer (foreign or domestic) NOT registered with the NASD.

"X" - Unknown - This code should be used when the Reporting Member cannot determine which of the above codes is appropriate. It may not be used for orders that are coded with the wholesale ("W") account type code. The NASD will monitor for improper or excessive use of this code.

Should you have questions about the Received Method Code or on OATS in general, please contact the OATS Business Help Desk at (800) 321-NASD or by e-mail.