[ by Howard Haykin ]

The NYSE offered guidance on end-of-the-year trade settlements, the timing of which is critical for tax planning by investors.  In an Information Memo published last week, NYSE-Regulation provided the following details:

• The last day on which "regular way" transactions in securities, other than U.S. government obligations, may be made for settlement this calendar year on NYSE and NYSE MKT (fka Amex) is 12/26/12.
• Non-regular way transactions effected between 12/27 and 12/31/12, for settlement in 2012 may be effected on "cash", "next day" or "seller's option" basis - subject to the following conditions:
  • "Next Day" transactions can only take place on 12/27 and 12/28, to qualify for 2012.
  • A "seller's option trade" with a 2-day settlement entered on 12/27/12 also would settle in 2012.
• Orders entered on or after 12/27 that are not marked with "non-regular way" settlement instructions will settle in 2013.

NYSE Rule 14 governs the manner in which non-regular way orders must be marked - i.e., with the appropriate settlement instruction and transmitted directly to a Floor broker for representation in the market.  Members and member organizations must also obtain and record Floor Official approvals (via a Floor broker) for certain non-regular way trades pursuant to Rule 64(b).  Executions of these orders must be reported to the Consolidated Tape with cash, next day or seller's option transaction indicators as appropriate.

NYSE-Regulation Staff Contacts.   Questions should be directed to the following individuals:

Re: Operations:  SVP Paul Bauccio  [pbauccio@nyx.com"pbauccio@nyx.com or 212.656.2929];  Director Dennis Pallotta  [dpallotta@nyx.com or 212.656.5236]. 

Re: Regulations:  Director Patricia Bergholc  [FINRA Market Reg.   [patricia.bergholc@finra.org  or  917.281.3054];  Director John Saxton, FINRA Market Reg.  [john.saxton@finra.org or   917.281.3114].
NYSE, NYSE MKT Rules:  Chief Counsel David De Gregorio, NYSE Regulation  [212.656.4166  or   ddegregorio@nyx.com]. 

Questions may also be directed to the FINRA On-Floor Surveillance Unit [via the White Phone  or   at the Unit's Booth on the Floor].

For further details, go to:  [ NYSE-Reg Information Memo 12-32, 12/19/12 ].