Search:
   

Tuesday, March 31, 2020

Equity Trader Alert #2020 - 18
Nasdaq Testing Opportunity: Saturday, April 4, 2020

Category:

  • Testing

Markets Impacted:

Contact Information:

Resources:

Nasdaq Production system will be open from 9:00 a.m. to 12:00 p.m. Eastern Time (ET) for general customer testing this Saturday, April 4, 2020. A complete list of products and systems available during the test and the full list of Saturday testing dates can be found on the Saturday Testing Policy Page.

In addition to regular testing on Saturday, April 4, the following new functionality will be available for market participant testing:

  • Market-Wide Circuit Breaker (MWCB) Re-Opening Protections
  • Order Functionality Updates on Nasdaq PSX (PSX)

 

Nasdaq to Introduce MWCB Re-Opening Protections

As mentioned in Equity Trader Alert #2020-17, The Nasdaq Stock Market (Nasdaq) will be implementing changes relating to how trading reopens following a MWCB Level 1 and 2 halt by introducing reopening procedures similar to those under the Limit Up/Limit Down Plan. The changes are as follows:

  • Nasdaq will be introducing MWCB Auction Collars, which are calculated by taking 5% of the Nasdaq last sale price and adding/subtracting the calculated value from the Nasdaq last sale price to determine the upper/lower collar prices. The MWCB Level 1 or Level 2 halt period will be extended an additional 5 minutes (and the Auction Collars will be widened by an additional 5%) if 1) the auction price at which the most shares would be traded is outside the range of the pre-defined Auction Collars; or 2) there is a market order share imbalance.

    •  

  • The initial Display Only Period will begin quoting and disseminating the Net Order Imbalance Indicator (NOII) for the full 15 minutes duration of a MWCB Level 1 or 2 halt.

Please see additional details here.

 

Order Functionality Updates on PSX

As mentioned in Equity Trader Alert #2020 - 15, PSX will be introducing modifications to the following:

  • Post Only orders
  • Midpoint orders during a crossed market
  • Minimum Acceptable Quantity (MAQ)

Please see additional details here.

Firms must register for Saturday testing by contacting Nasdaq Trading Services by 12:00 p.m. (ET), on the Friday prior to the Saturday test in which they would like to participate. The 2020 Saturday Test schedule can be found on the Saturday Testing Policy Page

The Nasdaq Test Facility is also available on a daily basis and allows firms to test their automated systems that integrate with Nasdaq's services.

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.

View NASDAQTrader.com Mobile