Tuesday, April 2, 2013

Equity Technical Update #2013 - 14
Limit Up/Limit Down FINAL Industry Test Plan for Saturday, April 6, 2013

What is happening?

NASDAQ OMX^® has conducted three out of four planned Saturday tests as part of an industry wide effort to ensure that our Members are properly prepared for the market wide system changes coming for Limit Up/Limit Down (LULD) and the revised Market Wide Circuit Breakers. This Saturday will be the final test to prepare for the changes taking effect on Monday April 8, 2013. The rollout plan was announced previously in ETA 2013-27.

What is the anticipated industry test plan?

Each Exchange will be executing core scenarios linked to below as part of this test and will be similar to previous tests. There are two symbol lists below. The first list is specifically reserved for only Exchanges to test and unless you have been notified by an Exchange you may NOT use the symbols in the first list below. The second list will be available for all industry participants to test this Saturday.

Symbols Reserved for NASDAQ Only Testing:

Symbols Open for ALL Industry Testing Participants:

What are the anticipated scenarios that the Exchanges will run?

Refer to the LULD/MWCB Industry Testing Plan document on the NASDAQ Trader^® testing webpage for detailed information about the anticipated scenarios that the Exchanges and their selected testing parties will run.

Will NASDAQ's Options markets also be participating in the April 6^th Weekend Test?

Yes, The NASDAQ Options Market^SM (NOM), NASDAQ OMX PHLX^SM (PHLX^®) and NASDAQ OMX BX Options^SM (BX Options) will be participating in this weekend's test. Contact NASDAQ OMX Options and Futures Market Operations at +1 215 496 5550 for more information specifically related to Options testing.

May industry participants that are not specifically assigned as testers also run through the above scenarios?

Yes, provided they do not use the symbols assigned only to Exchanges.

Will the NASDAQ symbols being used during this weekend's test differ from those being put into production this Monday, April 8^th?

No, the NASDAQ symbols being used in this weekend's test will be the same symbols going into the first production rollout on Monday, April 8, 2013. See announcement: ETA 2013-27.

Will there be a simulated Market Wide Circuit Breaker?

No, there will not be a simulated Market Wide Circuit Breaker.

What will be available and when?

NASDAQ OMX production systems will be available for pre-market trading in all securities at 9:00 a.m., Eastern Time (ET), followed by a market open at 9:30 a.m., ET.

LULD Price Bands will be in effect from 9:45 a.m., ET 2013 11:30 a.m., ET.

Do customers need to register for the test?

Yes, firms should email NASDAQ OMX Trading Services to register for the test.

Who should customers contact if they have questions during testing?

Customers should contact the NASDAQ OMX Trade Desk at +1 212 231 5100.

Does NASDAQ offer any tools to help firms with Limit Up/ Limit Down Compliance?

Yes, NASDAQ OMX has introduced Limit Locator, a new tool for monitoring trade reports submitted to the FINRA/NASDAQ Trade Reporting Facility^TM (TRF^TM) at and outside the Limit Up/Limit Down price bands. Daily counts of trades at and outside each of the bands and a 30-day historical summary provide an at-a-glance view of violation trends.

Limit Locator is available in a free beta period for test symbols until the Limit Up/Limit Down regulation takes full effect (currently scheduled for April 8, 2013). Sign up for the free trial via the Front-End Request Form. Click here to view a brief overview presentation.

Please contact Kate Newnam at +1 212 401 8720 for questions or a demo.

Where can I find additional information?

• Refer to the LULD/MWCB Industry Testing Plan document on the NASDAQ Trader Testing webpage.
• Refer to the LULD FAQ document on the NASDAQ Trader web page.
• For a demo of Limit Locator, please contact Kate Newnam at +1 212 401 8720.
• Contact Transaction Services U.S. Market Sales at +1 800 846 0477.