D. Order Receipt
This topic includes information and reporting requirements related to the origination or receipt of an order.
- EventAudio file
- FAQD10. How should orders received with instructions from the customer to buy as much stock as possible for a specific dollar amount (e.g., $1,000) over the course of the day (commonly referred to as "cash" orders) be reported to CAT?
In Phases 2a/2b/2c, these orders should be reported to CAT with a handlinginstructions value of ‘CNH’ denoting Cash Not Held. Starting in Phase 2d, these orders should be reported to CAT with handlingInstructions values of ‘CASH’ and ‘NH’, denoting the cash order and Not Held customer instructions.
The ‘CND’ handlingInstructions value indicates that an order is contingent on the execution of another order. The ‘CMC’ handlingInstructions value indicates that an order is contingent on the occurrence of a market condition (e.g., once symbol ABCD trades X# of shares, the order becomes executable). Industry Members may populate both values if applicable to the order.
- FAQD36. Should the handingInstructions value of ‘CSC’ (Contingent on a Spread Condition) be reported to CAT if an order is being worked by an algorithm that may utilize strategies that work the order in a way similar to a spread condition?
No, the handlingInstructions value of ‘CSC’ (Contingent on Spread Condition), introduced in the November 2020 Industry Member Technical Specifications, must not be reported on the New Order or Order Accepted events submitted to CAT if such spread conditions are associated with a particular algorithm.
The ‘SMT’ handlingInstructions value is only applicable to Order Route events (MEOR/MOOR) and is used to indicate that an order is routed out via a Smart Router. While handlingInstructions are not required on Order Route events until Phase 2c (equities) and Phase 2d (options), this value may optionally be populated on Order Route events in Phase 2a (equities) and Phase 2b (options).
- FAQD24. What value should be populated in the deptType field for orders in which a broker-dealer is providing direct market access to customers that are not broker-dealers?
Firms providing direct market access to non-broker-dealer customers must populate the deptType field with the value of 'DMA' (Direct Market Access). The value of Sponsored Access ('SA') is only used for market access orders involving another broker-dealer.
- FAQD30. Are the material terms of an order that are communicated via default or implicit handling instructions, such as instructions that are defaulted at a port or connection level, required to be reported to CAT?
Yes, for each order, the “material terms of the order” (as that term is defined in SEC Rule 613(j)(7)), including those material terms that may be defaulted at a port or connection level, must be reported to CAT. This includes implicit or default instructions agreed to between the Industry Member and its customer or client that are material terms.
- FAQD34. FAQ D30 states that material terms of an order that are communicated via default or implicit handling instructions, such as instructions that are defaulted at a port or connection level, are required to be reported to CAT. How must such instructions, including standing instructions, firm-wide defaults, or port- or connection-level defaults, be reported?
As a general rule, the party who applies the default or implicit handling instruction to the order is required to report any material terms in that instruction to CAT.
- FAQD29. How should Industry Members populate handling instructions for orders received or originated with instructions to work the order using a trading algorithm?
In Phase 2a, if an order is received or originated with instructions to work the order using a Trading Algorithm as defined by FINRA Rule 1220(b)(4)(a), a handlingInstructions value of “ALG” should be populated on the New Order or Order Accepted event submitted to CAT along with any additional relevant handlingInstructions.
This FAQ has been retired. Please refer to FAQ B58.