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Tuesday, November 19, 2024

UTP Vendor Alert #2024 - 17
UPDATE: SIP Fractional Share Trade Reporting Enhancements

Markets Impacted:

Products Impacted:

Contact Information:

What you need to know:

  • As previously announced in March 2024, FINRA Technical Notice 3/22/24, FINRA is planning to implement enhancements to the FINRA equity trade reporting facilities to support the reporting of fractional share quantities. The enhancements require associated updates to FINRA’s trade reporting guidance, as described in greater detail in the previously provided Trade Reporting Notice. These enhancements are being made in coordination with the Unlisted Trading Privileges (UTP) and Consolidated Tape Association (CTA) Securities Information Processors (SIPs) to facilitate the dissemination of fractional share quantities for NMS stocks.

  • In support of this announcement, UTP SIP will be making changes to support fractional share trade reporting on the same timeline as the effective date of FINRA’s updated trade reporting guidance. FINRA has UPDATED its release guidance and it is now expected to be no earlier than the third calendar quarter of 2025.

  • The UTP SIP changes are described in updated specifications, which are available on the UTP Plan webpage and will be implemented as a “Hot Cut” release.

What is Changing?

This initiative will enhance the existing UTP SIP product to support fractional share trade reporting. The UTP Processor will make the following new implementation to facilitate this Change Request.

UTP Trade Data Service Changes

  • Fractional share amounts as low as one millionth of one share (0.000001 shares) will be supported for any trade report or subsequent action on a trade report.
  • New UTDF messages supporting both whole and fractional share trades (as a single volume field) will be created to replace existing UTDF messages:
    • Trade report (current day)
    • Trade cancel / error
    • Trade correction
    • Prior-day as-of trade report
    • Closing trade summary
    • Total consolidated and market center volume

Please review the new message format changes that will be introduced with the “Hot-Cut” release. As with any hot-cut release, data subscribers should be prepared to process both the old and new formats, in the unlikely event that the release needs to fallback.

Which Data Feed Recipients need to test and be prepared for the new UTP Trade Data “Hot-Cut” Services?

Direct Data Feed Recipients need to be prepared for the new UTP Trade Data Services. Indirect Data Feed Recipients should experience a seamless transition managed by their Data Feed Provider.

UTP Trade Messages Cutover Requirements
  • Migration to the new UTDF messages shall be a “hot cut”, upon day one of the enhancement, new messages shall replace all existing messages pertaining to trade reports and share volume and shall be inclusive of all trades reported (i.e., whole share only, fractional share only and whole with fractional component reporting).
  • All direct data recipients must be prepared to read the new messages on this cutover date or risk losing access to trade data.

What is the timeline for this enhancement?

UPDATE Timing: Q3 2025 The UTP SIP and SIAC are working jointly, in consultation with the UTP Operating Committee and FINRA, to establish a release schedule that ensures a smooth transition. The effective date of the fractional share enhancements will be no earlier than the third calendar quarter of 2025.

The UTP SIP and SIAC will work closely with the industry to ensure participation in the testing and readiness.

What are the testing opportunities?

The UTP Processor will post additional Vendor Alerts, as more details become available around implementation schedules and testing opportunities.

Who should I contact for additional information?