Technical Notice

TBA Transaction Testing Information

May 1, 2013

Beginning Monday, May 6, 2013, FINRA will allow firms to test the TBA reduction in reporting periods for the timely reporting of transactions in agency pass-through mortgage-backed securities traded TBA for good delivery (MBS TBA transactions GD) and products not traded for good delivery (MBS TBA transactions NGD).

The reporting periods will be reduced when the current pilot programs expire at 11:59:59 p.m. Eastern Time (ET) on May 17, 2013. Upon expiration of the pilot program, the time to report these transactions will be reduced as set forth below.

Current Reporting Requirement until
May 17, 2013, 11:59:59 p.m., ET
(from time of execution)
Reporting Requirement Upon Expiration
of the Pilot Program
(from time of execution)
MBS TBA transactions GD – 45 minutes 15 minutes
MBS TBA transactions NGD – 120 minutes 60 minutes

Testing Details—NTF

Authorized firms may enter and process TBA test transaction data in the NASDAQOMX Testing Facility (NTF).

Note: Normal testing fees will apply for testing the reduction in reporting periods.

Subject Information
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 TRACE test website:
Testing hours Mon–Fri; 8 a.m. – 6 p.m. ET

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