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Wednesday, February 3, 2010

Equity Trader Alert #2010 - 7
Update on Launch of Third NASDAQ OMX U.S. Equity Market

Markets Impacted:

  • NASDAQ OMX PSX

Contact Information:

What you need to know:

  • As announced in Equity Trader Alert #2009-73, NASDAQ OMX plans to launch a third U.S. equity trading platform based on a price/size priority market structure using the license acquired from the 2007 acquisition of the Philadelphia Stock Exchange, pending SEC approval.
  • The new platform will be called NASDAQ OMX PSX (PSX).
  • NASDAQ OMX plans to launch PSX in May 2010.
  • Sign up for PSX alerts on the NASDAQ OMX Trader website.

What is being launched?

As announced in Equity Trader Alert #2009-73, NASDAQ OMXSM will launch a third U.S. equity trading platform using the license acquired from the 2007 acquisition of the Philadelphia Stock Exchange. The timing of the launch and PSX rules and market structure are subject to regulatory review by the Securities and Exchange Commission (SEC). Accordingly, the information provided in this Equity Trader Alert is subject to future modification.

This new market will be called NASDAQ OMX PSXSM (PSXSM) and is scheduled to launch in May 2010.

What is the market model for the new platform?

PSX will feature a price/size priority market structure, a model currently not available for trading equities in the U.S. In a price/size model, orders posted on the book are allocated shares based on the following hierarchical criteria:

  1. Best Price
  2. Displayed Liquidity
  3. Pro Rata Distribution

PSX will operate as a Reg NMS protected quote, trading securities listed on NASDAQ, NYSE, NYSE Amex and NYSE Arca and will run on proven INET technology.

NASDAQ OMX will continue to offer price/time priority trading on The NASDAQ Stock Market® and NASDAQ OMX BXSM (BXSM).

What memberships and connections will be required for the new platform?

Customers will be able to leverage their current connectivity to NASDAQ OMX data centers and their current membership to NASDAQ OMX PHLXSM (PHLXSM).

How can I stay updated on PSX?

In order to continue to receive updates about trading and market data on PSX, sign up for PSX alerts on the NASDAQ OMX Trader website®.

Where can I find additional information?

Please follow Nasdaq on Facebook RSS and Twitter.

Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 90 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to approximately 3,900 total listings with a market value of approximately $13 trillion. To learn more, visit: business.nasdaq.com.

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