- FAQB66. When is the Order Effective event/Option Order Effective event (MEOE/MOOE) required to be reported to CAT?
Beginning Phase 2c (equities) and Phase 2d (options), the Order Effective event/Option Order Effective event (MEOE/MOOE) is required to be reported to CAT when all underlying conditions of an order are met such that the order becomes and remains effective until it is fully executed or cancelled. Examples of orders requiring the MEOE/MOOE event include:
Consolidated Audit Trail, LLC and FINRA CAT, LLC will host a Monthly CAT Implementation Update on the third Thursday of every month at 4:15 pm ET beginning on September 17, 2020 until further notice. The Monthly CAT Implementation Update meetings provide the industry with a high level overview of materials and guidance published on the www.catnmsplan.com website during the month.Audio file
Consolidated Audit Trail, LLC and FINRA CAT, LLC will host a Monthly Industry Testing Checkpoint Calls for CAIS/LTID on the November 18, 2020 at 4:15 pm ET.
Please note that FINRA CAT, LLC is now utilizing Zoom to conduct industry webinars. Please check your firewall to ensure your firm has the ability to view Zoom content. If you are unable to download and run Zoom, please click the “join from your browser” link. The presentation document and recording will be posted.Audio file
- Reference Material
- FAQB12. Are Industry Members required to report the equity leg of a complex order in Phase 2a of the revised implementation schedule?
The reporting obligation for the equity legs of complex orders beginning in Phase 2a is as follows. If a complex order includes an equity leg and the terms and conditions of the order are contingent upon the related option trade, the equity leg must be reported using the special handling code of “OPT” starting in Phase 2a. This reporting obligation applies regardless of whether the complex order is split or not split into components.
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.
- FAQB57. How should the orderType and handlingInstructions fields be populated on the receipt/origination or route of Stop, Stop Limit, Stop on Quote, Stop Limit on Quote, Trailing Stop, and Trailing Stop Limit orders?
The orderType field for orders received/originated or routed as Stop orders must be populated as ‘MKT’, and the orderType field for orders received/originated or routed as Stop Limit orders must be populated as ‘LMT’.
- FAQB59. What are the reporting requirements when a Stop, Stop Limit, Stop on Quote, or Stop Limit on Quote order is triggered?
In Phase 2a (equities) and Phase 2b (options), Industry Members are required to report a New Order event or New Option Order event (MENO or MONO) representing receipt or origination of the order with applicable handlingInstructions, as well as any subsequent actions taken on the order (i.e., executing, routing away or canceling).
For CAT reporting purposes, a Trailing Stop order allows the stop price to increase (or decrease) by a predetermined amount or formula (e.g., a specified dollar amount, a percentage of the market price, or some other predetermined criteria) as the market price of the security advances (or declines). Once the Trailing Stop price is triggered, the sell (or buy) order becomes either an executable market order or a limit order (e.g., a Trailing Stop Limit order).
- FAQB60. What party has the obligation to report the Order Effective event/Option Order Effective event (MEOE/MOOE) to CAT when all underlying conditions are met such that the order become and remain effective?
Beginning in Phase 2c (equities) and Phase 2d (options), the party that is holding the order at the time the order or all underlying conditions are met such that the order becomes and remains effective until it is fully executed or cancelled has the obligation to report to CAT the Order Effective event or Option Order Effective event (MEOE or MOOE). Refer to the Industry Member Reporting Scenarios document for additional information.