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01-60 New Requirements For Electronic Blue Sheets Submissions

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ACTION REQUESTED

Intermarket Surveillance Group

SUGGESTED ROUTING

KEY TOPICS

Legal & Compliance
Operations
Senior Management

Blue Sheets



Executive Summary

This Notice to Members discusses new uniform provisions regarding the automated reporting requirement for Electronic Blue Sheets (EBS).

Effective August 8, 2001 all members were required to:

(1) electronically submit to the Securities and Exchange Commission (SEC or Commission), upon request, customer and proprietary transactions via the EBS system, and (2) provide to the SEC, upon request, a current contact person for blue sheet data.

Effective January 7, 2002 all members will be required upon request to report via the EBS system:

1. Prime Brokerage Identifiers
2. Average Price Account Identifiers
3. Depository Institution Identifiers

All members are strongly encouraged to test their ability to provide these new categories of information with either the Securities Industry Automation Corporation (SIAC) or the NASD Form Filings system in order to be in compliance by the effective dates.

Member firms that use a "service bureau" to transmit electronic blue sheets on their behalf are required to ensure that service bureaus comply with applicable SEC and SRO rules and regulations on their behalf.

This Notice was prepared by the following self-regulatory organizations (SROs) acting jointly as members of the Intermarket Surveillance Group (ISG):

American Stock Exchange, Inc. (Amex)

Boston Stock Exchange, Inc. (BSE)

Chicago Board Options Exchange, Inc. (CBOE)

Chicago Stock Exchange, Inc. (CHX)

Cincinnati Stock Exchange, Inc. (CSE)

International Securities Exchange (ISE)

NASD Regulation, Inc. (NASDR)

New York Stock Exchange, Inc. (NYSE)

Pacific Exchange, Inc. (PCX)

Philadelphia Stock Exchange, Inc. (PHLX)

New Uniform Provisions

Recently, the SEC adopted Rule 17a-25 under Section 17 of the Securities Exchange Act of 1934 (Exchange Act).1

Rule17a-25:

Provision 1: codifies the requirement that broker/ dealers must electronically submit to the Commission, upon request, information concerning customer and proprietary transactions via the EBS system;

Provision 2: requires broker/dealers to provide to the Commission, on request, and keep current, information concerning the firm's contact for blue sheet data; and,

Provision 3: adds three reportable data elements not currently required by the EBS system utilized by the SROs:

i. prime brokerage identifiers;
ii. average price account identifiers; and
iii. depository institution identifiers.

Provisions 1 and 2 on the previous page became effective on August 8, 2001 while Provision 3 will be effective on January 7, 2002.

As provided by SRO rules,2 members and member organizations must currently provide the data required in Provision 1 on the previous page to the SROs through the EBS system. Firms also use the EBS system to respond to SEC requests for information. Rule 17a-25 requires broker/dealers to submit the required information to the Commission upon request in a format specified by the broker/dealer's designated SRO under Rule 17d-1 of the Exchange Act.

As a result of the new requirements in Provision 3 on the previous page, SIAC will add the three additional fields to the EBS system file. The chart below describes the format and location of the three new fields in the EBS system file. See Attachment A for the complete EBS system file3 layout. The fields are located in record "5" of each blue sheet transaction.

  • The prime broker field is to be populated with the clearing number of the account's prime broker.


  • The average price account field will be used to identify whether the account is the average price account itself or the recipient of transactions for an average price account. This field will be populated with the following values:


  • 1 = recipient of average price transaction

    2 = average price account itself

  • The depository institution identifier is to be populated with the identifying number assigned to the account by the depository institution.

All members are strongly encouraged to test their enhanced blue sheet information with SIAC before sending actual blue sheet information with the new data elements. Please contact SIAC's Network Support Department at (212) 383-5401 for testing information. Firms that utilize SIAC's PC Data Entry system must obtain an updated version of the blue sheet data entry software from SIAC's PC Service Center at (212) 383-2062. Members that use the PC Data Entry system need not test. NASD members that submit EBS data via the Form Filings system should test their enhanced blue sheet information via Form Filings before sending actual blue sheet information with the new data elements. Those members should contact the CASH Help Desk at (800) 321-NASD (6273) for testing information.

To comply with Provision 2 on the previous page, updated firm blue sheet contact information can be submitted to the SEC by providing Joseph Cella, Chief, Office of Market Surveillance, or Mark Lineberry, Branch Chief with the following:

Full name, title, address, telephone number(s), facsimile number(s), and electronic mail address(es) for each person designated by the member, broker, or dealer as a SEC contact.

They can be reached by writing to:

Securities and Exchange Commission
450 5th Street NW
Washington, DC 20549-1001

or via e-mail at cellaj@sec.gov or lineberrym@sec.gov, respectively.

Questions concerning provisions of Rule 17a-25 should be directed to Alton Harvey, Office Chief, at (202) 942-4167, or Anitra Cassas, Special Counsel, at (202) 942-0089, Division of Market Regulation, Securities and Exchange Commission, 450 5th Street, NW, Washington, DC 20549-1001.

From Col To Col LNG Field Name Format Justify Cobol Picture Default Value
62 65 4 Prime Broker Alphanumeric Left X(4) Spaces
66 66 1 Average Price Account Alphanumeric X(1) Spaces
67 71 5 Depository Institution Identifier Alphanumeric Left X(5) Spaces

Questions/Further Information

Questions concerning this Notice may be directed to:

Amex
Eric Miller (212) 306-1552
BSE
Brian Colby (617) 235-2158
CBOE
Pat Sizemore (312) 786-7752
CHX
Dan Liberti (312) 663-2057
CSE
Jeffrey T. Brown (312) 786-8893
ISE
James Sampson (212) 897-0235
NASDR
Jim Dolan (240) 386-5007
NYSE
Aldo Martinez (212) 656-8532
PCX
Tim Miller (415) 835-4848
PHLX
Edward Deitzel (215) 496-5298


Endnotes

1 See SEC Release No. 34-44494.

2 Amex - Rule 153A, CBOE - Rule 15.7, CSE - 8.2, 5.3, ISE - Rule 1404, NASD - Rule 8211, 8212 and 8213, NYSE - Rule 342.20, 410A, 476 (a) (11), PCX - Rule 10.2(c), PHLX - Rule 785

3 The NASD's Form Filing system for submitting EBS data is also being modified to add the three new reportable data elements. All NASD members submitting EBS data via Form Filings will be required to include all relevant information pertaining to the three new data elements with each EBS submission beginning on January 7, 2002.


ATTACHMENT A

RECORD LAYOUT FOR SUBMISSION OF TRADING INFORMATION

**** THIS RECORD MUST BE THE FIRST RECORD OF THE FILE ****

FIELD FROM POSITION TO FIELD LENGTH FIELD NAME/DESCRIPTION/REMARKS FIELD FORMAT JUSTIFY PICTURE CLAUSE DEFAULT VALUE
1 3 3 FILLER A LJ X (3) HDR
4 5 2 FILLER A LJ X (2) .S
6 10 5 DTRK-SYSID N LJ 9 (5) 12343
11 12 2 FILLER A LJ X (2) .E
13 14 2 FILLER N LJ 9 (2) 00
15 16 2 FILLER A LJ X (2) .C
17 20 4 DTRK-ORIGINATOR
Please call SIAC for assignment (212) 383-2210
A LJ X (4) --
21 22 2 FILLER A LJ X (2) .S
23 26 4 DTRK-SUB-ORIGINATOR A LJ X (4) --
27 27 1 FILLER A LJ X (1) B
28 33 6 DTRK-DATE
Contains submission date.
N LJ 9 (6) MMDDYY
34 34 1 FILLER A LJ X (1) B
35 59 25 DTRK-DESCRIPTION
Required to identify this file.
A LJ X (25) FIRM TRADING INFORMATION
60 80 21 FILLER A LJ X (21) B


Field Format - Code Default Values - Code Justify
alphanumeric = A Blanks = B RJ = Right Justification of Data
numeric = N Zero = Z LJ = Left Justification of Data
packed = P    
binary = B    


FIELD FROM POSITION TO FIELD LENGTH FIELD NAME/DESCRIPTION/REMARKS FIELD FORMAT JUSTIFY PICTURE CLAUSE DEFAULT VALUE
1 1 1 HEADER RECORD CODE
Value: Low Values OR ZERO
A -- X --
2 5 4 SUBMITTING BROKER NUMBER If NSCC member use NSCC clearing number. If not a NSCC member, use clearing number assigned to you by your clearing agency. A LJ X (4) B
6 40 35 FIRM'S REQUEST NUMBER
Tracking number used by the firm to record requests from an organization.
A -- X (35) B
41 46 6 FILE CREATION DATE Format is YYMMDD A -- X (6) --
47 54 8 FILE CREATION TIME
Format is HH:MM:SS
A -- X (8) --
55 55 1 REQUESTOR CODE Requesting Organization Identification.
Values: The same codes in Exchange Code Field in RECORD SEQUENCE NUMBER ONE.
A -- X --
56 70 15 REQUESTING ORGANIZATION NUMBER Number assigned by requesting organization A LJ X (15) B
71 80 10 FILLER A -- X (10) B


Field Format - Code Default Values - Code Justify
alphanumeric = A Blanks = B RJ = Right Justification of Data
numeric = N Zero = Z LJ = Left Justification of Data
packed = P    
binary = B    


FIELD FROM POSITION TO FIELD LENGTH FIELD NAME/DESCRIPTION/REMARKS FIELD FORMAT JUSTIFY PICTURE CLAUSE DEFAULT VALUE
1 1 1 RECORD SEQUENCE NUMBER ONE
The first record of the transaction. Value: 1
A -- X --
2 5 4 SUBMITTING BROKER NUMBER
Identical to Submitting Broker Number in Header Record
A LJ X (4) --
6 9 4 OPPOSING BROKER NUMBER
The NSCC clearing house number of the broker on the other side of the trade.
A LJ X (4) B
10 21 12 CUSIP NUMBER
The cusip number assigned to the security. Left justified since the number is nine characters at present (8+ check digit) but will expand in the future
A LJ X (12) B
22 29 8 TICKER SYMBOL
The symbol assigned to this security.
A LJ X (8) B
30 35 6 TRADE DATE
The date this trade executed. Format is YYMMDD.
A -- X (6) B
36 41 6 SETTLEMENT DATE
The date this trade will settle. Format is YYMMDD
A -- X (6) B
42 53 12 QUANTITY
The number of shares or quantity of bonds or option contracts.
N RJ 9 (12) Z
54 67 14 NET AMOUNT
The proceeds of sales or cost of purchases after commissions and other charges.
N RJ S9(12)V99 Z
68 68 1 BUY/SELL CODE
Values: 0 = Buy, 1 = Sale, 2 = Short Sale, 3 = Open Long, 4 = Open Short, 5 = Close Long, 6 = Close Short. A = Buy Cancel, B = Sell Cancel, C = Short Sale Cancel, D = Open Long Cancel, E = Open Short Cancel, F = Close Long Cancel, G = Close Short Cancel. Values 3 to 6 and D to G are for options only
A -- X B
69 78 10 PRICE
The transaction price. Format: $$$$ CCCCCC.
N RJ 9(4)V(6) Z
79 79 1 EXCHANGE CODE
Exchange where trade was executed.
Values:

A = New York Stock Exchange

B = American Stock Exchange

C = Chicago Stock Exchange

D = Philadelphia Stock Exchange

E = Pacific Stock Exchange

F = Boston Stock Exchange

G = Cincinnati Stock Exchange

I = International Securities Exchange

K = CBOE

L = London Stock Exchange

M = Toronto Stock Exchange

N = Montreal Stock Exchange

O = Vancouver Stock Exchange

R = NASDAQ

S = Over-the-Counter

T = Tokyo Stock Exchange

X = Securities Exchange Commission

Z = Other
A -- X B
80 80 1 BROKER/DEALER CODE
Indicate if trade was done for another Broker/Dealer. Values: 0 = No; 1 = Yes
A -- X B


Field Format - Code Default Values - Code Justify
alphanumeric = A Blanks = B RJ = Right Justification of Data
numeric = N Zero = Z LJ = Left Justification of Data
packed = P    
binary = B    


FIELD FROM POSITION TO FIELD LENGTH FIELD NAME/DESCRIPTION/REMARKS FIELD FORMAT JUSTIFY PICTURE CLAUSE DEFAULT VALUE
1 1 1 RECORD SEQUENCE NUMBER TWO
Value: 2
A -- X --
2 2 1 SOLICITED CODE
Values: 0 = No; 1 = Yes
A -- X B
3 4 2 STATE CODE
Standard Postal two character identification.
A -- X (2) B
5 14 10 ZIP CODE/COUNTRY CODE
Zip Code -- five or nine character (zip plus four)
Country code -- for future use.
A LJ X (10) B
15 22 8 BRANCH OFFICE/REGISTERED
REPRESENTATIVE NUMBER
Each treated as a four character field. Both are left justified.
A LJ X (8) B
23 28 6 DATE ACCOUNT OPENED
Format is YYMMDD
A -- X (6) B
29 48 20 SHORT NAME FIELD
Contains last name followed by comma (or space) then as much of first name as will fit.
A LJ X (20) B
49 78 30 EMPLOYER NAME A LJ X (30) B
79 79 1 TIN 1 INDICATOR
Values: 1 = SS#; 2 = TIN
A -- X B
80 80 1 TIN 2 INDICATOR
Values: 1 = SS#; 2 = TIN -- for future use.
A -- X B


Field Format - Code Default Values - Code Justify
alphanumeric = A Blanks = B RJ = Right Justification of Data
numeric = N Zero = Z LJ = Left Justification of Data
packed = P    
binary = B    


FIELD FROM POSITION TO FIELD LENGTH FIELD NAME/DESCRIPTION/REMARKS FIELD FORMAT JUSTIFY PICTURE CLAUSE DEFAULT VALUE
1 1 1 RECORD SEQUENCE NUMBER THREE
Value: 3
A -- X --
2 10 9 TIN ONE
Taxpayer Identification Number
Social Security or Tax ID Number.
A LJ X (9) B
11 19 9 TIN TWO
Taxpayer Identification Number #2
Reserved for future use.
A LJ X (9) B
20 20 1 NUMBER OF N&A LINES A -- X B
21 50 30 NAME AND ADDRESS LINE ONE A LJ X (30) B
51 80 30 NAME AND ADDRESS LINE TWO A LJ X (30) B


Field Format - Code Default Values - Code Justify
alphanumeric = A Blanks = B RJ = Right Justification of Data
numeric = N Zero = Z LJ = Left Justification of Data
packed = P    
binary = B    


FIELD FROM POSITION TO FIELD LENGTH FIELD NAME/DESCRIPTION/REMARKS FIELD FORMAT JUSTIFY PICTURE CLAUSE DEFAULT VALUE
1 1 1 RECORD SEQUENCE NUMBER FOUR
Value: 4
A -- X --
2 31 30 NAME AND ADDRESS LINE THREE A LJ X (30) B
32 61 30 NAME AND ADDRESS LINE FOUR A LJ X (30) B
62 62 1 PROPRIETARY-CUSTOMER INDICATOR
1 = Trade was for a proprietary account of submitting broker/dealer or another broker/dealer
2 = Trade was for customer of submitting broker/dealer or another broker/dealer
A -- X B
63 80 18 ACCOUNT NUMBER
Account number
A LJ X (18) B


Field Format - Code Default Values - Code Justify
alphanumeric = A Blanks = B RJ = Right Justification of Data
numeric = N Zero = Z LJ = Left Justification of Data
packed = P    
binary = B    


FIELD FROM POSITION TO FIELD LENGTH FIELD NAME/DESCRIPTION/REMARKS FIELD FORMAT JUSTIFY PICTURE CLAUSE DEFAULT VALUE
1 1 1 RECORD SEQUENCE NUMBER FIVE
Value: 5
A -- X (1) --
2 31 30 NAME AND ADDRESS LINE FIVE A LJ X (30) B
32 61 30 NAME AND ADDRESS LINE SIX A LJ X (30) B
62 65 4 PRIME BROKER
Clearing number of the account's prime broker.
A LJ X (4) B
66 66 1 AVERAGE PRICE ACCOUNT
1 = recipient of average price transaction.
2 = average price account itself.
N -- 9 (1) Z
67 71 5 DEPOSITORY INSTITUTION IDENTIFIER
Identifying number assigned to the account by the depository institution.
A LJ X (5) B
72 80 9 FILLER A -- X (9) B


Field Format - Code Default Values - Code Justify
alphanumeric = A Blanks = B RJ = Right Justification of Data
numeric = N Zero = Z LJ = Left Justification of Data
packed = P    
binary = B    


FIELD FROM POSITION TO FIELD LENGTH FIELD NAME/DESCRIPTION/REMARKS FIELD FORMAT JUSTIFY PICTURE CLAUSE DEFAULT VALUE
1 1 1 TRAILER RECORD DATE
One record per submission. Must be the last record on the file. Value: High Values or "9"
A -- X --
2 17 16 TOTAL TRANSACTIONS
The total number of transactions. This total excludes Header and Trailer Records.
N RJ 9 (16) B
18 33 16 TOTAL RECORDS ON FILE
The total number of 80 byte records. This total includes Header and Trailer Records, but not the Datatrak Header Record (i.e., does not include the first record on the file).
N RJ 9 (16) Z
34 80 47 FILLER A -- X (47) B


Field Format - Code Default Values - Code Justify
alphanumeric = A Blanks = B RJ = Right Justification of Data
numeric = N Zero = Z LJ = Left Justification of Data
packed = P    
binary = B