A 4853 - November 9, 1998
P&S 4417
TO: ALL PARTICIPANTS
ATTENTION: DIRECTOR OF OPERATIONS; MANAGER P&S DEPARTMENT; MANAGER CASHIERS DEPARTMENT; MANAGER DATA PROCESSING
SUBJECT: RECAPS - DECEMBER 1998
The next cycle of NSCC's Reconfirmation and Repricing Service (RECAPS) is scheduled for the week of December 7, 1998.
A part of the RECAPS mandate, instituted in the December 1990 cycle, is the SEC requirement that firms indicate upon submission those fails that are being submitted to RECAPS which were submitted in a previous RECAPS cycle and compared, but did not settle. Firms must use the indicator "R" in column "80" of the fail input record when submitting a repeat fail.
In addition to the number of repeat fails being reported to the SEC, it will also be reported to participants' Designated Examining Authorities. Participants must maintain records documenting these fails.
Equity, Municipal, Corporate, UIT and Zero instrument fails five (5) business days and older will be accepted for recomparison and repricing. In preparing your fail files for submission, note that fails must be dated December 4, 1998 or earlier.
The following are the processing timeframes for automated input. Participants utilizing NSCC branches for input should check with these locations directly for input deadlines:
Tuesday, Dec 8th |
Participants must submit their CUSIP files for Friday's anticipated fail input by 5:00 p.m. |
Friday, Dec 11th |
Participants must submit their fail input no later than 2:00 a.m. Saturday morning |
Sunday, Dec 13th |
NSCC will generate Contracts, CNS and Non-CNS Compared Trade Summaries, and Balance Orders to participants for Friday's fail input for Monday review and supplemental processing. |
Monday, Dec 14th |
Supplementary input (Advisories, As-Ofs, DK =s, Rejects) must be submitted no later than 4:00 p.m. |
Tuesday, Dec 15th |
NSCC will generate Contracts, CNS and Non-CNS Compared Trade Summaries and Balance Orders for Monday's supplemental input. |
Friday's recompared fails and Monday
=s supplementary recompared fails will settle on Tuesday, December 15, 1998.NEW YORK SETTLING PARTICIPANTS ARE ENCOURAGED NOT TO FAX IN THEIR SUPPLEMENTARY INPUT BUT UTILIZE PC PLATFORM, PC WEB DIRECT OR DIRECT TRANSMISSION. IF KEYPUNCHING IS NECESSARY, KINDLY SUBMIT YOUR INPUT VIA MESSENGER TO THE SIAC CONTROL WINDOW.
To minimize rerun requests, for those firms who utilize hardcopy output, please be on the lookout for output specifically designated "RECAPS" from other output you may receive. NSCC will no longer accept or distribute RECAP tapes.
RECAPS INELIGIBLE PRODUCT CUSIP FILE:
As in past cycles, NSCC will continue to edit for Foreign Securities, Government Securities, Mutual Funds, & Reorgs. These securities will be rejected upon submission on RECAPS Friday or As-Ofs the following Monday to the extent they are on NSCC's file of ineligible securities. Reject codes will appear in the Registered/Bearer field of the REJECTED TRADES area of participants' RECAPS Contracts with the following codes and descriptions:
"M" - Mutual Fund.................................."Ineligible M/F Security"
"F" - Foreign Security............................."Ineligible Foreign Sec"
"G" - Government Security....................."Ineligible Govt Security"
"R" - REORG........................................."Ineligible REORG Sec"
The reject descriptions above will not appear at the far right if another reject error is found upon submission. If submission of an ineligible security is the only reason for the reject, the above reject messages will appear. Participants should attempt to edit their fail files of these securities to the extent this is possible prior to fail submission on Friday.
Any questions regarding this Important Notice can be directed to NSCC Participant Services in New York at (212) 412-8432, or Victor Rosado at (212) 412-8596.
Bernard M. Sweeney
Director, Production Services