Tuesday, January 08, 2019

Equity Trader Alert #2019 - 4
New Timing: Nasdaq to Introduce Midpoint Trade Now Functionality


  • New Functionality

Markets Impacted:

Contact Information:

The Nasdaq Stock Market (“Nasdaq”) will introduce a new “Midpoint Trade Now” option as previously announced in Equity Trader Alert #2018 – 101. The Midpoint Trade Now option will provide participants the ability to specify on the original order that once posted on the Nasdaq book, if the order is locked by a Midpoint Peg Post-Only (“MPPO”) contra-side order, the resting order will attempt to remove liquidity against locking contra-side orders up to its available size; any unexecuted portion of the resting order will remain posted at its price, with no change in order priority. Nasdaq originally planned to make this new functionality available on January 14, 2019, but now plans to make this available later in Q1 2019. More information on when the Midpoint Trade Now option will be available will be communicated in the near future.

The Midpoint Trade Now option will be available as a port setting for all order types, and will be available on an order-by-order basis for Non-Displayed and Midpoint Peg orders only. Nasdaq has added two new Display instructions, “n” and “m”, for Non-Displayed and Midpoint Peg orders, respectively, with Midpoint Trade Now.

Testing Opportunities

Testing is currently available in the Nasdaq Testing Facility (NTF). Production testing will be available during the January 12, 2019 UAT.

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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.