form T
from nasd site.....
NASD Regulation Reiterates Proper Use Of Form T
Recently, NASD Regulation staff has detected an increase in the improper use
of Form T to report transactions in Nasdaq, over-the-counter equity, and listed
securities. The staff reminds members that NASD rules provide that a Form
T be used "exclusively as a back-up mode whenever electronic entry of trade
data into ACT is not feasible due to system malfunctions or other unusual
conditions." In the situation where there is not a system malfunction or other
unusual condition, a member is able to and should use ACT to report a
transaction as late as 1:30 p.m. Eastern Time on the next business day (T+1).
Therefore, the use of Form T should be a rare occurrence. To the extent that a
member claims that system malfunctions or unusual conditions prevented the
member from reporting a trade report electronically into ACT, the member
should document each such malfunction and condition contemporaneously
with its occurrence.
The staff has also detected an increase in untimely Form T filings by
members. NASD rules provide that all members must report on Form T, on a
weekly basis, last sale reports of transactions in Nasdaq, over-the-counter
equity, and listed securities that were not reported to ACT, "for whatever
reason." Thus, in instances where a member executes a transaction on Monday
and, for whatever reason, did not report the transaction into ACT by 1:30 p.m.
Eastern Time on T+1, the member must report the transaction to NASD
Regulation's Market Regulation Department on Form T on or before the
following Monday (this same Form T could also be used to report any other
transactions executed by the member in the prior week but not reported to
ACT, for whatever reason). A Form T filed with the Market Regulation
Department on the following Tuesday, or any day thereafter reporting that
transaction, could be viewed as conduct inconsistent with NASD trade
reporting rules.
