I am really struggling with ACT and TRF. What is the difference ?

The NASDAQ market systems are heavily tested on the series 24 exam. This section tends to be the most challenging and in many cases the most frustrating for students. Most series 24 test takers are not sitting on trading desks. In fact most have never even seen one. In order to pass the series 24 exam you have to be a master of this information and demonstrate a level of understanding equivalent to a seasoned NASDAQ trader. The easiest way to differentiate ACT from TRF is to explain the concept using an every day scenario. Lets say you need to place an order on Amazon to buy a few household products. Once the products are in your cart you fill out the order form. You enter your name, shipping address, email address and payment information. You press the order button and the information is transmitted to Amazon. The next step takes place in the backend where Amazon’s merchant account charges your credit card and processes the order to ship you your products Simple, right? The TRF and ACT system function in exactly the same way. Instead of ordering products from Amazon and entering your details on a check out form, the TRF is an on screen “form” where traders can report the details of a trade. I.e bought 1,000 shares of XYZ at 42.15 from JP Morgan. When the trader hits the submit button the information is transmitted to the ACT system. In the backend the ACT system functions in a similar fashion to Amazon’s merchant account. ACT facilitates the clearing of the transaction. It facilitates the exchange of cash and securities between the buyer. Any transaction executed electronically is automatically reported to the ACT system ACT reports trades to the tape, matches and clears. ACT only plays a role after a trade is executed. It does not display, route or execute orders.