A 4878 -
December 29, 1998
P&S 4442
TO: ALL PARTICIPANTS
ATTENTION: MANAGER MUTUAL FUNDS OPERATIONS, MANAGER DATA PROCESSING, MANAGER CASHIERS, MANAGER P&S DEPARTMENT
SUBJECT: FUND/SERV EXCHANGE MODIFICATIONS
National Securities Clearing Corporation’s (NSCC) Fund/SERV system provides the mutual fund industry with an automated and centralized method for processing mutual fund orders, account registrations and centralized net settlement.
Effective March 29, 1999, enhancements to the Fund/SERV exchange process will be implemented and available for use by participants. Per a standing request of the ICI Enhancements sub-committee of the ICI Broker/Dealer Advisory Committee through the year 2000, these enhancements will contain optional and not mandatory fields.
I. System Enhancements:
i) The exchange confirmation (Record Type 016) and reconfirmation (Record Type 017) records will be expanded to include five separate records to support multiple sales charge rates. This will accommodate multiple transfer record journal entries necessary to properly identify commission due based on a sliding scale. Currently, three records are available.
ii) An additional optional "Exchange To" account number and fund/firm indicator will be added in the confirmation (Record Type 016) and reconfirmation (Record Type 017) records.
iii) Provision for "as-of" exchanges.
iv) Provision for firm-exits for exchanges and as-of exchanges.
Functional Requirements:
A. Add Sales Charge Records
The existing exchange confirmation (Record Type 016) and reconfirmation (Record Type 017) record will be modified to allow for five sales charge rate records. Currently there are three sales charge rate records; two will be added. The "exchange to total dollar amount" field is a summation of the populated "exchange to dollar amount due" fields.
Please see Appendix A for the enhanced record layouts for Record Type 016 and 017.
B. Add additional "exchange to" account number
The existing format provides for one "exchange to" account number, i.e. either the fund or the firm number. An additional optional twenty character account number and one character account number indicator will be added to the confirmation (Record Type 016) and reconfirmation (Record Type 017) records. This will give the funds the option to confirm both the fund account number and the firm account number.
Please see Appendix A for the enhanced record layouts for Record Type 016 and 017.
C. Allow for "As-of" processing of an exchange
An "as-of" indicator will be added to the exchange (Record Type 015), confirmation (Record Type 016) and reconfirmation (Record Type 017) records to indicate "as-of" processing.
The current exchange settlement cycle will be used for regular exchange and "as-of" exchange transactions. The transaction (trade) date must be earlier than the current date on an "as-of" exchange. The "as-of" exchange processing range (indicating how old the trade date can be) will be the same as the existing "as-of" order processing range. The confirmation or reconfirmation "as-of" indicator must match the "as-of" indicator on the exchange record. Reject code 021 will be used to notify the participant of an invalid "as-of" indicator.
Please note: Funds have the option to exclude themselves from the "as-of" exchange process. Please send in a new member profile shown in Appendix B or contact the Mutual Fund Hotline to be excluded from the "as-of" exchange process. If you are currently blocked from exchanges you will automatically be excluded from the "as-of" exchange process and you do not have to fill out another form. To block only specific securities, please use the new CUSIP profile form shown in Appendix C.
Please see Appendix A for the enhanced record layouts for Record Type 015, 016 and 017.
D. Allow firm-exits on an exchange and as-of exchange.
A provision will be added to allow a firm to remove via a firm-exit (Record Type 139) a previously submitted exchange or "as-of" exchange.
This new firm-exit will be accepted for confirmed and non-confirmed exchanges on the trade date/process date of the transaction. The firm-exit will be allowed as long as it is received by NSCC on the same day that the exchange/"as-of" exchange was received, prior to the creation of the last cycle (cycle 98) of AutoRoute file 361 (approximately 7 PM). This is file 02112361 for 8-digit Y2K participants and file 02110361 for 6-digit participants. A reject code 023 will be sent back to the participant if the firm exit was not sent in the proper time frame.
Please note: Funds have the option to exclude themselves from the firm-exit process. Please send in a new member profile shown in Appendix B or contact the Mutual Fund Hotline to be excluded from the exchange firm-exit process. If you are currently blocked from firm-exits you will automatically be excluded from accepting the exchange/"as-of" exchange firm-exit and you do not have to fill out another form. To block specific securities, please use the new CUSIP profile form shown in Appendix C.
III. Revised Record Layouts
The Exchange Order (Record Type 015), Exchange Confirmation (Record Type 016), and Exchange Reconfirmation (Record Type 017) formats have been modified.
Please see Appendix A for modifications to the following formats:
Section I: Eight-Digit Y2K Fixed Length Layouts
Section II: Eight-Digit Y2K Variable Length Layouts
Section III: Six-Digit Fixed Length Layouts
Section IV: Six-Digit Variable Length Layouts
Section V: Reject CodesAll existing Mutual Fund Services record layouts can be found on NSCC’s Year 2000 file format web page at www.y2000.org/nscc. The revised record layouts for the Fund/SERV enhancement as outlined in this notice will be available on this web page on January 29, 1999.
IV. Test Plan
Beginning March 15, 1999, Fund/SERV users can begin testing these enhancements in NSCC’s Participant Test Region. This will enable funds and firms to test the functionality prior to putting the changes into production. Refer to Important Notice A4770 dated May15, 1998 for information on this test region. This notice can be found on the web at www.nscc.com.
Any questions pertaining to this Important Notice can be directed to NSCC’s Mutual Fund Hotline at (212) 412-8893, your account manager, or the undersigned at (212) 412-8843.
Barbara Simon
Director, Mutual Fund Marketing
Appendix A
I. EIGHT-DIGIT Y2K FIXED LENGTH LAYOUTS
1. Exchange (record type 015) Record 3 modifications:
| Field Name | Start |
End |
Len |
Type |
Description | Opt/ |
RejectCode |
| As-Of Indicator | 71 |
71 |
1 |
A/N |
0 = Regular Exchange 1 = As-Of Exchange |
O |
021 |
| Filler | 72 |
100 |
29 |
A/N |
Space | R |
2. Exchange Confirmation/Reconfirmation (record types 016/017) Record 3 modifications:
| As-Of Indicator | 71 |
71 |
1 |
A/N |
0 = Regular Exchange 1 = As-Of Exchange |
O |
021 |
| Filler | 72 |
100 |
29 |
A/N |
Space | R |
3. Exchange Confirmation/Reconfirmation (record types 016/017) Record 5 modifications:
| Number of Records Beyond Record #5 | 54 |
55 |
2 |
N |
Maximum of 05 ** | R |
049 |
| Exch To Account Number #2 | 56 |
75 |
20 |
A/N |
O |
||
| Exch To Account Number #2 Indicator | 76 |
76 |
1 |
A/N |
Required if Exch To Account Number #2 is provided. 1 = Fund 2 = Firm |
OC |
048 |
| Filler | 77 |
100 |
24 |
A/N |
Space | R |
**Note: New values for existing field in record 5.
4. Exchange Confirmation/Reconfirmation (record types 016/017) two new records:
Record 9 of 10 Optional. Used to report additional sales charge rate
| Field Name | Start |
End |
Len |
Type |
Description | Opt/ |
RejectCode |
| Physical Sequence Number | 1 |
2 |
2 |
A/N |
R |
004 |
|
| Logical Sequence Number | 3 |
4 |
2 |
A/N |
09 | R |
004 |
| Filler | 5 |
7 |
3 |
A/N |
Space | R |
|
| Exch To Gross Dollar Amount |
8 |
23 |
16 |
N |
99,999,999,999,999.99 | R |
019 |
| Exch To Dollar Amount Due |
24 |
39 |
16 |
N |
99,999,999,999,999.99 | R |
026 |
| Exch To Total Share Quantity |
40 |
53 |
14 |
N |
9,999,999,999.9999 | R |
019 |
| Exch To Price Per Share | 54 |
65 |
12 |
N |
999,999.999999 | R |
027 |
| Exch To Firm Concession | 66 |
74 |
9 |
N |
9,999,999.99 | O |
044 |
| Exch To Sales Charge Rate | 75 |
78 |
4 |
N |
9.999 | O |
025 |
| Filler | 79 |
100 |
22 |
A/N |
Space | R |
Record 10 of 10 Optional. Used to report additional sales charge rate
| Field Name | Start |
End |
Len |
Type |
Description | Opt/ |
RejectCode |
| Physical Sequence Number | 1 |
2 |
2 |
A/N |
R |
004 |
|
| Logical Sequence Number | 3 |
4 |
2 |
A/N |
10 | R |
004 |
| Filler | 5 |
7 |
3 |
A/N |
Space | R |
|
| Exch To Gross Dollar Amount |
8 |
23 |
16 |
N |
99,999,999,999,999.99 | R |
019 |
| Exch To Dollar Amount Due |
24 |
39 |
16 |
N |
99,999,999,999,999.99 | R |
026 |
| Exch To Total Share Quantity |
40 |
53 |
14 |
N |
9,999,999,999.9999 | R |
019 |
| Exch To Price Per Share | 54 |
65 |
12 |
N |
999,999.999999 | R |
027 |
| Exch To Firm Concession | 66 |
74 |
9 |
N |
9,999,999.99 | O |
044 |
| Exch To Sales Charge Rate | 75 |
78 |
4 |
N |
9.999 | O |
025 |
| Filler | 79 |
100 |
22 |
A/N |
Space | R |
II. EIGHT-DIGIT Y2K VARIABLE LENGTH LAYOUTS
1. Exchange (record type 015) modifications:
| Field Name | Start |
End |
Len |
Type |
Description | Opt/ |
RejectCode |
| As-Of Indicator | 261 |
261 |
1 |
A/N |
0 = Regular Exchange 1 = As-Of Exchange |
O |
021 |
| Filler | 262 |
290 |
29 |
A/N |
Space | R |
2. Exchange Confirmation/Reconfirmation (record types 016/017) modifications:
| Record Length | 1 |
4 |
4 |
N |
0476 = No ‘To’ sections included 0569 = ‘To’ section #1 included 0662 = ‘To’ sections #1 and #2 included 0755 = ‘To’ sections #1, #2 and #3 included 0848 = ‘To’ sections #1, #2, #3 and #4 included 0941 = ‘To’ sections #1, #2, #3, #4 and #5 included |
R |
152 |
| As-Of Indicator | 261 |
261 |
1 |
A/N |
0 = Regular Exchange 1 = As-Of Exchange |
O |
021 |
| Filler | 262 |
290 |
29 |
A/N |
Space | R |
| Number of ‘To’ sections | 430 |
431 |
2 |
N |
00-05 Must correspond Record Length |
R |
049 |
| Exch To Account Number #2 | 432 |
451 |
20 |
A/N |
O |
||
| Exch To Account Number #2 Indicator | 452 |
452 |
1 |
A/N |
Required if Exch To Account Number #2 is provided. 1 = Fund 2 = Firm |
OC |
048 |
| Filler | 453 |
476 |
24 |
A/N |
Space | R |
3. Exchange Confirmation/Reconfirmation (record types 016/017) two new sections:
| Field Name | Start |
End |
Len |
Type |
Description | Opt/ |
RejectCode |
|||
Start of ‘To’ section #4 (optional, used to report additional sales charge rate) |
||||||||||
| Exch To Gross Dollar Amount 4 |
756 |
771 |
16 |
N |
99,999,999,999,999.99 | R |
019 |
|||
| Exch To Dollar Amount Due 4 |
772 |
787 |
16 |
N |
99,999,999,999,999.99 | R |
026 |
|||
| Exch To Total Share Quantity 4 |
788 |
801 |
14 |
N |
9,999,999,999.9999 | R |
019 |
|||
| Exch To Price Per Share 4 | 802 |
813 |
12 |
N |
999,999.999999 | R |
027 |
|||
| Exch To Firm Concession 4 | 814 |
822 |
9 |
N |
9,999,999.99 | O |
044 |
|||
| Exch To Sales Charge Rate 4 |
823 |
826 |
4 |
N |
9.999 | O |
025 |
|||
| Filler | 827 |
848 |
22 |
A/N |
Space | R |
||||
Start of ‘To’ section #5 (optional, used to report additional sales charge rate) |
||||||||||
| Exch To Gross Dollar Amount 5 |
849 |
864 |
16 |
N |
99,999,999,999,999.99 | R |
019 |
|||
| Exch To Dollar Amount Due 5 |
865 |
880 |
16 |
N |
99,999,999,999,999.99 | R |
026 |
|||
| Exch To Total Share Quantity 5 |
881 |
894 |
14 |
N |
9,999,999,999.9999 | R |
019 |
|||
| Exch To Price Per Share 5 | 895 |
906 |
12 |
N |
999,999.999999 | R |
027 |
|||
| Exch To Firm Concession 5 | 907 |
915 |
9 |
N |
9,999,999.99 | O |
044 |
|||
| Exch To Sales Charge Rate 5 |
916 |
919 |
4 |
N |
9.999 | O |
025 |
|||
| Filler | 920 |
941 |
22 |
A/N |
Space | R |
||||
III. SIX-DIGIT FIXED LENGTH LAYOUTS
1. Exchange (record type 015) Record 3 modifications:
| Field Name | Start |
End |
Len |
Type |
Description | Opt/ |
RejectCode |
| As-Of Indicator | 65 |
65 |
1 |
A/N |
0 = Regular Exchange 1 = As-Of Exchange |
O |
021 |
| Filler | 66 |
80 |
15 |
A/N |
Space | R |
2. Exchange Confirmation/Reconfirmation (record types 016/017) Record 3 modifications:
| As-Of Indicator | 65 |
65 |
1 |
A/N |
0 = Regular Exchange 1 = As-Of Exchange |
O |
021 |
| Filler | 66 |
80 |
15 |
A/N |
Space | R |
3. Exchange Confirmation/Reconfirmation (record types 016/017) Record 6 modifications:
| Number of Records Beyond Record #6 |
45 |
46 |
2 |
N |
Maximum of 05 ** | R |
049 |
| Exch To Account Number #2 | 47 |
66 |
20 |
A/N |
O |
||
| Exch To Account Number #2 Indicator | 67 |
67 |
1 |
A/N |
Required if Exch To Account Number #2 is provided. 1 = Fund 2 = Firm |
OC |
048 |
| Filler | 68 |
80 |
13 |
A/N |
Space | R |
**Note: New values for existing field in record 6.
4. Exchange Confirmation/Reconfirmation (record types 016/017) two new records:
Record 10 of 11 Optional. Used to report additional sales charge rate
| Field Name | Start |
End |
Len |
Type |
Description | Opt/ |
RejectCode |
| Physical Sequence Number | 1 |
2 |
2 |
A/N |
R |
004 |
|
| Logical Sequence Number | 3 |
4 |
2 |
A/N |
10 | R |
004 |
| Filler | 5 |
7 |
3 |
A/N |
Space | R |
|
| Exch To Gross Dollar Amount |
8 |
19 |
12 |
N |
9,999,999,999.99 | R |
019 |
| Exch To Dollar Amount Due |
20 |
31 |
12 |
N |
9,999,999,999.99 | R |
026 |
| Exch To Total Share Quantity |
32 |
45 |
14 |
N |
9,999,999,999.9999 | R |
019 |
| Exch To Price Per Share | 46 |
52 |
7 |
N |
999.9999 | R |
027 |
| Exch To Firm Concession | 53 |
61 |
9 |
N |
9,999,999.99 | O |
044 |
| Exch To Sales Charge Rate | 62 |
65 |
4 |
N |
9.999 | O |
025 |
| Filler | 66 |
80 |
15 |
A/N |
Space | R |
Record 11 of 11 Optional. Used to report additional sales charge rate
| Field Name | Start |
End | Len |
Type |
Description | Opt/ |
RejectCode |
| Physical Sequence Number | 1 |
2 |
2 |
A/N |
R |
004 |
|
| Logical Sequence Number | 3 |
4 |
2 |
A/N |
11 | R |
004 |
| Filler | 5 |
7 |
3 |
A/N |
Space | R |
|
| Exch To Gross Dollar Amount |
8 |
19 |
12 |
N |
9,999,999,999.99 | R |
019 |
| Exch To Dollar Amount Due |
20 |
31 |
12 |
N |
9,999,999,999.99 | R |
026 |
| Exch To Total Share Quantity |
32 |
45 |
14 |
N |
9,999,999,999.9999 | R |
019 |
| Exch To Price Per Share | 46 |
52 |
7 |
N |
999.9999 | R |
027 |
| Exch To Firm Concession | 53 |
61 |
9 |
N |
9,999,999.99 | O |
044 |
| Exch To Sales Charge Rate | 62 |
65 |
4 |
N |
9.999 | O |
025 |
| Filler | 66 |
80 |
15 |
A/N |
Space | R |
IV. SIX DIGIT VARIABLE LENGTH LAYOUTS
1. Exchange (record type 015) modifications:
| Field Name | Start |
End |
Len |
Type |
Description | Opt/ |
RejectCode |
| As-Of Indicator | 215 |
215 |
1 |
A/N |
0 = Regular Exchange 1 = As-Of Exchange |
O |
021 |
| Filler | 216 |
230 |
15 |
A/N |
Space | R |
2. Exchange Confirmation/Reconfirmation (record types 016/017) modifications:
| Record Length | 1 |
4 |
4 |
N |
0449 = No ‘To’ sections included 0522 = ‘To’ section #1 included 0595 = ‘To’ sections #1 and #2 included 0668 = ‘To’ sections #1, #2 and #3 included 0741 = ‘To’ sections #1, #2, #3 and #4 included 0814 = ‘To’ sections #1, #2, #3, #4 and #5 included |
R |
152 |
| As-Of Indicator | 215 |
215 |
1 |
A/N |
0 = Regular Exchange 1 = As-Of Exchange |
O |
|
| Filler | 216 |
230 |
15 |
A/N |
Space | R |
| Number of ‘To’ sections | 414 |
415 |
2 |
N |
00-05 Must correspond Record Length |
R |
049 |
| Exch To Account Number #2 | 416 |
435 |
20 |
A/N |
O |
||
| Exch To Account Number #2 Indicator | 436 |
436 |
1 |
A/N |
Required if Exch To Account Number #2 is provided. 1 = Fund 2 = Firm |
OC |
048 |
| Filler | 437 |
449 |
13 |
A/N |
Space | R |
3. Exchange Confirmation/Reconfirmation (record types 016/017) two new sections:
| Field Name | Start |
End |
Len |
Type |
Description | Opt/ |
RejectCode |
|||
Start of ‘To’ section #4 (optional, used to report additional sales charge rate) |
||||||||||
| Exch To Gross Dollar Amount 4 |
669 |
680 |
12 |
N |
9,999,999,999.99 | R |
019 |
|||
| Exch To Dollar Amount Due 4 |
681 |
692 |
12 |
N |
9,999,999,999.99 | R |
026 |
|||
| Exch To Total Share Quantity 4 |
693 |
706 |
14 |
N |
9,999,999,999.9999 | R |
019 |
|||
| Exch To Price Per Share 4 | 707 |
713 |
7 |
N |
999.9999 | R |
027 |
|||
| Exch To Firm Concession 4 | 714 |
722 |
9 |
N |
9,999,999.99 | O |
044 |
|||
| Exch To Sales Charge Rate 4 |
723 |
726 |
4 |
N |
9.999 | O |
025 |
|||
| Filler | 727 |
741 |
15 |
A/N |
Space | R |
||||
Start of ‘To’ section #5 (optional, used to report additional sales charge rate) |
||||||||||
| Exch To Gross Dollar Amount 5 |
742 |
753 |
12 |
N |
9,999,999,999.99 | R |
019 |
|||
| Exch To Dollar Amount Due 5 |
754 |
765 |
12 |
N |
9,999,999,999.99 | R |
026 |
|||
| Exch To Total Share Quantity 5 |
766 |
779 |
14 |
N |
9,999,999,999.9999 | R |
019 |
|||
| Exch To Price Per Share 5 | 780 |
786 |
7 |
N |
999.9999 | R |
027 |
|||
| Exch To Firm Concession 5 | 787 |
795 |
9 |
N |
9,999,999.99 | O |
044 |
|||
| Exch To Sales Charge Rate 5 |
796 |
799 |
4 |
N |
9.999 | O |
025 |
|||
| Filler | 800 |
814 |
15 |
A/N |
Space | R |
||||
a. Description of reject code changed:
Reject |
Description |
021 |
As-Of Indicator invalid |
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