OATS Report - April 6, 2004

April 6, 2004

NASD reminds firms that OATS Cancel Reports need not be submitted for Immediate or Cancel ("IOC") or Fill or Kill ("FOK") orders that are not immediately executed. Firms receiving these types of orders are required to include the IOC or FOK special handling code on the OATS New Order or Combined type reports.

An IOC order requires that all or part of the order be executed as soon as the broker enters a bid or offer. Any portion not executed is automatically cancelled. An FOK order is an order where the entire order is executed (filled) immediately or cancelled (killed). Killing the order means canceling it automatically. Because by their initial terms, these two types of orders are automatically cancelled if not executed, it is unnecessary as indicated to submit a Cancel Report to OATS.

If you have any questions regarding this article, please contact the OATS Helpdesk at 1-800-321-NASD.