Automatic Confirmation Transaction Provider – ACT

What Is the Automatic Confirmation Transaction (ACT) Provider?

Automatic Confirmation Transaction (ACT) Provider is an automated knowledge system designed to report and report the clearing of trades on exchanges owned and operated thru Nasdaq, which compares trade information entered thru ACT folks and submits “locked-in” trades to National Securities Clearing Corporate (NSCC) for clearance and settlement; transmits opinions of the transactions automatically to the National Trade Reporting Device, if required, for dissemination to most people and the commerce; and provides folks with monitoring and risk regulate options to facilitate participation in a “locked-in” purchasing and promoting environment. 

Understanding Automatic Confirmation Transaction Services and products

Designed to increase transparency, the Automatic Confirmation Transaction (ACT) Provider is a generation platform that provides faster get right of entry to to trade information, increase the efficiency of trade reconciliation and back-office transactions and provides online get right of entry to to the status of all trade entries.

The FINRA/Nasdaq Trade Reporting Facility® (TRF) is a regulatory compliance entity operated in partnership thru FINRA and Nasdaq for reporting over-the-counter (OTC) transactions in equity securities. ACT is a showed and relied on post-trade generation, and is built on the INET platform, the commerce standard for more than 90 marketplaces in 50 international locations. For over 20 years, the TRF has been supporting OTC trade reporting in equity securities using ACT. ACTs are used throughout the Nasdaq virtual stock market. 

Prior to using the ACT, the Nasdaq carried out the Trade Acceptance and Reconciliation Provider, or TARS. The ACT modified TARS and assumed its capacity throughout the third quarter of 1998.

Participation in ACT

Consistent with the SEC, participation in ACT is mandatory for all brokers which may well be individuals of a clearing corporate registered with the Price pursuant to Section 17A of the Securities and Alternate Act, and for all brokers that have a clearing affiliation with this type of broker. Participation in ACT as a market maker (MM) is conditioned on the MM’s initial and continuing compliance with SEC must haves.

Upon execution and receipt thru Nasdaq of the ACT Participant tool agreement, an ACT Participant would perhaps get started input and validation of trade information in ACT eligible securities. ACT Individuals would perhaps get right of entry to the service by the use of Nasdaq terminals or Workstations or by way of laptop interface during the hours of operation specified throughout the ACT Shoppers Knowledge. Prior to such input, all ACT Individuals, along with those that have trade report information submitted to Nasdaq thru any third party, must obtain from Nasdaq a unique working out Market Participant Symbol (“MMID” or “MPID”), and use that identifier for trade reporting and audit trail purposes.

Each ACT report shall come with the following information:

1. Protection identification symbol of the eligible protection (SECID);
2. Number of shares or bonds;
3. Unit price, except for commissions, mark-ups or mark-downs;
4. Execution time for any transaction in Nasdaq or CQS securities not reported inside of 90 seconds of execution;
5. A logo indicating whether or not or no longer the party submitting the trade report represents the Market Maker aspect, ECN aspect, or the Order Get entry to aspect;
6. A logo indicating whether or not or no longer the transaction is a purchase order, advertise, advertise fast, advertise fast exempt or transfer;
7. A logo indicating whether or not or no longer the trade is as elementary, riskless elementary, or agent;
8. Reporting aspect clearing broker (if relatively than standard clearing broker);
9. Reporting aspect executing broker as “give-up” (if any);
10. Contra aspect executing broker;
11. Contra aspect introducing broker in case of “give-up” trade;
12. Contra aspect clearing broker (if relatively than standard clearing broker)