.jpg)
Overview
As part of our effort to promote unified compliance standards across the industry, Direct Edge will update the order entry requirements for sending short sale orders via FIX on both EDGA Exchange and EDGX Exchange. Effective February 15, 2012, Direct Edge will require Members to populate FIX tag 114. This change will ensure short sale orders are clearly defined before entering the Direct Edge Exchanges. Please be advised that FIX tag 114 should be used both for short sale and short sale exempt orders.
We are providing this update to account for the circumstance where a Member is reasonably relying on an available exception to the locate requirement under SEC Regulation SHO, such as for short sales in connection with bona-fide market making in the security being sold short.
Details
- Currently, in FIX tag 114, Members are asked to specify their ability to borrow shares when entering a Short Sale order via the Direct Edge Exchanges; however, if the field is left blank by the Member, it is automatically populated with an “N” value (denoting ability to borrow). Effective February 15, 2012, Members will be required to select “N” or “Y” in FIX tag 114.
- N = Member affirms ability to borrow, or Member is relying on an exception to the Regulation SHO locate requirement
- Y = Member cannot affirm ability to borrow
- There will no longer be a default value, so Members will be required to populate FIX tag 114.
- There is no impact to orders entered via XPRS, our high performance API.
Timing
- Change will go into effect on Wednesday, February 15, 2012.
Action Required
- Members must update their systems accordingly to ensure FIX Tag 114 is populated.
More Information
- FIX and Drop Copy Specifications
- Direct Edge Sales Team at 201.942.8259
- Direct Edge Support Team at 201.942.8220
