A 4813 - August 12, 1998
P&S 4375
TO: ALL PARTICIPANTS
ATTENTION: MANAGING PARTNER/OFFICER; OPERATIONS PARTNER/OFFICER; MANAGER P&S DEPARTMENT; MANAGER DATA PROCESSING DEPARTMENT
SUBJECT: SCHEDULE CHANGE FOR PHASE 3 IMPLEMENTATION: OTC Optimization - Nasdaq ACT/TARS Migration
As a follow-up to NSCC Important Notice A 4808 - P&S 4370, Phase 3 Implementation: OTC Optimization - Nasdaq ACT/TARS Migration, dated August 4, The Nasdaq Stock Market has informed the Clearing Corporation that the date for the initial system modifications must change to AUGUST 24, from August 17 as announced in the previous notice. Nasdaq’s Trading and Market Services sent another special letter to ACT-TARS users entitled, Special Services Network Operations Extended: TARS Still Migrating into ACT, dated August 11. (1) The Clearing Corporation recommends that participants closely monitor all pertinent NASDR and Nasdaq publications in order to keep abreast of the latest implementation news. Please note the following revised dates:
Beginning August 24, Nasdaq will discontinue TARS contract queries and advisory stamping capabilities -- at that point, the NSCC contract file and report output will become the sole source of contract information for NSCC participants and participants using TARS must reconcile advisory trades by submitting matching TARS As-ofs or Withholds;
Beginning September 8, Nasdaq will discontinue TARS entirely and all reconciliation activity formerly performed via TARS must be performed via ACT’s new T+2 and older trade reconciliation facility. NSCC will return all records of trades locked-in by ACT’s new T+2 and older reconciliation facility on the current OTC Locked-in Contracts machine-readable output (OTC Locked-in Trades MRO File - AutoRoute ID # 02020183 - Original Format - 02022183 - Y2K Format) and on a new T+2 and Older section of the OTC Locked-in Trades Contracts Report (AutoRoute ID # 02020184).
Keep in mind that part of Nasdaq’s system changes involve the elimination of the Trade Acceptance and Reconciliation Service (TARS). If your firm does not already receive NSCC contracts, contact NSCC Participant Services at (212) 412-8432 in order to begin receiving contract output before TARS is eliminated.
If you have additional questions, please call the undersigned at (212) 412-8558.
Raymond F. Nolting
Director, Product Development
(1) For further information, contact Peter Forte at Nasdaq Market Operations at (203) 378-0166.