A 5309
P&S 4879
August 17, 2001
ATTENTION: MANAGING PARTNER/OFFICER, OPERATIONS PARTNER/OFFICER, MANAGER P&S DEPARTMENT, MANAGER DATA PROCESSING DEPARTMENT
SUBJECT: NSCC HAS ENHANCED ITS REGIONAL INTERFACE OPERATION PROCESS TO BEGIN ACCEPTED EXPIRED SECURITY FUTURESEffective immediately, the National Securities Clearing Corporation (NSCC) will be prepared to accept Expired Security Futures for clearance and settlement. Expired Security Futures are expired Single Stock Futures that settle with the delivery of the underlying security. If trading should begin later this month, the first transmission of Expired Security Futures is anticipated to be received on Friday, September 21, 2001.
Initially, all Expired Security Futures will be submitted to the NSCC from the Options Clearing Corporation (OCC). The underlying security will then settle in the same fashion as any other equity trade received from a market place, exchange or Qualified Special Representative. NSCC has enhanced its Regional Interface Operations Trade Activity Report (RIO) and associated Machine Readable Output (MRO) to allow participants to distinguish Expired Security Futures from regular equity transactions.
Changes to RIO Print and MRO Output
Participant’s RIO reports and MRO files have been modified to identify Expired Security Futures from regular trades and options. The following indicators will signify if a trade resulted from the expiration of a Single Stock Future:
For Future Use
An example of an Expired Security Future is attached to the back of this Important Notice.
The AutoRoute Product Identification code for the Regional Trade Activity (RIO) report is as follows:
|
AutoRoute ID # |
Report Name |
|
02140124 |
Regional Trade Activity (RIO) Report |
The Machine Readable Output (MRO) file for the Y2K-compliant Regional Trade Activity (RIO) Report has been modified to provide for the indicator as shown below. The file format, as well as all other Participant file formats, are available for your use at NSCC's website, http://formats.nscc.com.
|
NEW DEFINITION (A/O August 21, 2001) |
|
AutoRoute ID |
File Name |
Length |
Position |
Description |
Comments |
|
02142125 (Y2K Format) |
Futures Indicator |
1 |
127-127 |
Futures Indicator |
F = Expired Security Future |
Although NSCC has defined a bond and UIT indicators for possible future use, only an F will be displayed.
Participant Testing
Participants are encouraged to test the enhancements to the system, and test output is now available. Participants wishing to receive a test MRO file should contact the Participant Test Group of the Enterprise Service Center at (212) 855-5630 to arrange for test output.
Questions regarding these enhancements or this Notice may be e-mailed to the undersigned at estaloff@dtcc.com or directed to your Relationship Manager at (212) 855-4155.
Elena Staloff
Director, Product Marketing and Development
