OATS Report - July 9, 2004

July 9, 2004

When an NASD member firm receives or originates an order and electronically routes that order to another member firm, the routing firm must provide a Routed Order ID to the receiving firm. (This requirement does not apply when routing to an ECN or to a non-member.) Both the routing firm and the receiving firm must record and report this Routed Order ID to OATS so that NASD is able to electronically link the orders together and create a complete lifecycle for the order. (See the OATS Technical Specifications for detailed reporting requirements). It is the responsibility of the routing firm to communicate with the receiving firm to ensure that the receiving firm is able to capture and accurately report to OATS the Routed Order ID passed by the routing firm.

OATS attempts to match the Routed Order ID reported on the routing firm's Route Report to the Routed Order ID reported on the receiving firm's New Order Report (along with other relevant data elements as outlined in the table below). If the system is unable to match the two records because of incomplete or inaccurate data, the routing firm's Route Report is considered "unmatched". Starting July 14, 2004, routing firms can view Interfirm Route Matching statistics on the OATS Web Interface. The Interfirm Route Matching statistics provide routing firms with the number and percentage of Route Reports that effectively match, or do not match, to the corresponding New Order Report submitted by the receiving firm to which the order was routed. Along with the number and percentage of unmatched Route Reports, members will also be provided the specific unmatched reports so that they may research and correct any identified problems.

OATS uses the following fields to match the Route or Combined Order/Route Report from the routing firm to the New Order Report from the receiving firm. If any of these fields do not match, the routing firm's Route Report will be marked as unmatched by OATS.

Routing Firm Receiving Firm*
Sent to Firm MPID Order Receiving Firm MPID
Order Receiving Firm MPID Routing Firm MPID
Routed Order ID (Route Report)Sent to Routed Order ID (Combined Order/ Route Report) Routed Order ID
Order Sent Timestamp (date and time) is within +/- 3 seconds of Order Received Timestamp
Routed Shares Quantity Order Shares Quantity
Issue Symbol ID Issue Symbol ID

*In addition to the New Order Report, The following report types may be used: Cancel/Replace, Combined Order/Execution, and Combined Order/Route.

NASD reminds firms that when routing orders electronically to another non-ECN member, they are required to pass the Routed Order ID to the destination firm which, in turn, is required to report the Routed Order ID on its own New Order Report. Failure to report the proper Routed Order ID could result in disciplinary action. It is incumbent upon any firm routing an order to another firm to communicate with the receiving firm to ensure they are able to receive and record the routing firm's Routed Order ID.

For more information on obtaining Interfirm Route Matching statistics, please consult the OATS Reporting Technical Specifications, the OATS Subscriber Manual, or contact the OATS Helpdesk at 1-800-321-NASD.