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Friday, November 2, 2018

Equity Trader Alert #2018 - 87
Nasdaq, BX and PSX to Update the Display of Best Priced Orders to the SIPs

Category:

  • New Functionality

Markets Impacted:

Contact Information:

Pending filing with the SEC, The Nasdaq Stock Market, Nasdaq BX, and Nasdaq PSX (“Exchanges”) will update how resting displayed odd-lot orders are handled when aggregated and transmitted to the appropriate Securities Information Processor (“SIPs”) for display as the Exchange’s best priced order.

Currently, if the aggregate size of all resting displayed orders at the single best price to buy and sell is less than one round lot, the orders are not transmitted to the appropriate SIP for display as the Exchange’s best priced displayed orders. Beginning mid-Q1 2019, if resting odd-lot sized orders at multiple price levels can be aggregated to equal at least a round lot, such odd lot sized orders, in aggregate, will be transmitted to the appropriate SIP for display at the most aggressive price where all displayed orders at that price or better aggregate to equal at least a round lot.

For example, if the best bids on the Exchanges are 50 shares at $10.00, 50 shares at $9.99 and 100 shares at $9.98, the Exchanges currently transmit 100 shares at $9.98 to the SIP as the best price to buy. Beginning mid-Q1 2019, the Exchanges will transmit 100 shares at $9.99 as the best price to buy.

This change will be implemented on an exchange-by-exchange basis per the below rollout schedule:

  • Nasdaq PSX on January 28, 2019
  • Nasdaq BX on February 4, 2019
  • The Nasdaq Stock Market on February 11, 2019

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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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