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Friday, July 2, 2010

Equity Trader Alert #2010 - 43
NASDAQ Announces Pricing Changes Effective Monday, August 2, 2010

Markets Impacted:

Contact Information:

What you need to know:

  • Effective Monday, August 2, 2010, the billable rate for the NASDAQ Closing CrossSM will be $0.0010, pending filing with the Securities and Exchange Commission (SEC) on an immediately effective basis.
  • Updated: Effective Wednesday, September 1, 2010, supplemental Market Participant Identifiers (MPIDs) will be charged a fee of $1,000 per month, pending filing with the SEC on an immediately effective basis.

What is changing?

Effective Monday, August 2, 2010, NASDAQ OMX will update pricing for the NASDAQ Closing Cross and introduce new pricing for providing supplemental MPIDs, subject to filing with the SEC on an immediately effective basis.

What is the rate for shares executed in the NASDAQ Closing Cross?

The billable rate for the NASDAQ Closing Cross will be $0.0010.

As a reminder, Imbalance-Only orders and Continuous Book orders executed as part of the NASDAQ Closing Cross continue to be free of charge, and orders executed with a share price below $1.00 will still be charged 0.20% (i.e., 20 basis points) of total dollar volume of the transaction to remove liquidity.

What is the new pricing for supplemental MPIDs?

The first MPID requested by a NASDAQ member firm will continue to be free of charge. Supplemental MPIDs will be charged a fee of $1,000 per MPID, per month.

Supplemental MPIDs that are used exclusively for reporting to a facility of the Financial Industry Regulatory AuthorityTM (FINRATM), such as the FINRA/NASDAQ TRFTM or TRACE, will be excluded from this fee. You will receive a list of MPIDs from NASDAQ OMX enabling you to confirm any MPIDs that are exclusively used for FINRA reporting.

Where can I find a list of my firm’s MPIDs?

Contact NASDAQ OMX Subscriber Services via e-mail at subscriber@nasdaqomx.com for a full list of MPIDs assigned to your firm.

How can I request a supplemental MPID or change a current MPID?

Supplemental MPIDs can be requested by completing and submitting the Supplemental MPID Form. The fee for new supplemental MPIDs will be prorated for the portion of the month in which the MPID was issued.

If you wish to update or cancel an MPID, you can complete and submit the MPID Change Form. Any supplemental MPID cancellation requests that occur after the first day of the month will be effective on the date requested by the firm. However, the firm will be required to pay for the cancelled MPID through the rest of the month.

Where can I find additional information?

FINRATM is a trademark of Financial Industry Regulatory Authority, Inc.

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