A 4785 - June 15, 1998
P&S 4347
TO: ALL PARTICIPANTS
ATTENTION: MANAGING PARTNER/OFFICER; OPERATIONS PARTNER/OFFICER; MANAGER P&S DEPARTMENT; MANAGER DATA PROCESSING DEPARTMENT
SUBJECT: IMPLEMENTATION OF AMEX STEP OUT TRANSACTIONS
STEP OUT TRANSACTION PROCESSING SERVICE ENHANCEMENTS -
In conjunction with efforts at both the New York Stock Exchange (NYSE) and the American Stock Exchange (Amex), National Securities Clearing Corporation (NSCC) has enhanced its Listed Clearance Systems to account for Step Out transaction processing in Amex eligible securities as well as NYSE eligible securities. NYSE’s enhancements to the Step Out Service of the On-Line Comparison System (OCS) are detailed in their circular number PT0038, dated June 2, 1998. NSCC’s enhancements were detailed in its Important Notice to Participants, number A 4759 and P&S 4323, dated April 30, 1998. Both this Notice and NSCC’s earlier Notice are accessible at NSCC’s Website at www.nscc.com.
EFFECTIVE DATE -
Effective with trade date June 29, 1998, Amex member firms will be able to affect position movements, commonly referred to as Step Out Transactions, in Amex eligible securities as early as trade date, using the NYSE’s On-Line Comparison System (OCS). There are no new eligibility or subscriber requirements for using this service, all Amex eligible participants will become eligible for participation on June 29th.
STEP OUT TRANSACTION REPORTING -
In addition to the reports of affirmed Step Out Transactions provided by the OCS system, NSCC will report Amex Step Out transactions on a new section of the Amex Adjustment Contracts titled "Amex Step Out Transactions". This new Amex contract section is identical to the layout used for the NYSE Step Out Section and looks similar to the design of the Amex adjustment contract. All Amex Step Out transactions are identified by an "ST" on print contracts and in the "other transaction type" field of the Amex Listed Adjustment Contracts machine readable (MRO) output file. Please refer to NSCC’s previous Notice on this topic for greater detail and exhibits.
Operations and Systems staff at Participants are reminded that this enhancement neither introduces nor changes any new print or MRO output. Participant testing is not required for this enhancement nor are there any new eligibility or subscriber requirements.
Should you have any questions about this Notice or the Step Out Service in general please call NSCC’s Participant Services at (212) 412 - 8432.
Edward M. O’Shaughnessy
Vice President, Systems