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Wednesday, January 26, 2011

Equity Trader Alert #2011 - 6
NASDAQ OMX Announces New Launch Date for Short Sale Monitor

Markets Impacted:

Contact Information:

What you need to know:

  • As announced in Equity Trader Alert #2010-70, NASDAQ OMX® postponed the launch of the new Short Sale Monitor to coincide with the extended date for compliance with the Securities and Exchange Commission (SEC) Regulation SHO (Reg SHO) short sale rule.
  • Beginning Thursday, February 24, 2011, the NASDAQ OMX Short Sale Monitor will be available to firms in beta mode. Alerts will be generated starting February 28, 2011, in conjunction with the effective date of the Reg SHO rule.
  • The Short Sale Monitor will be FREE through March 31, 2011. Firms can sign up now by filling out the Front End Request Form.

What is the NASDAQ OMX Short Sale Monitor?

The Short Sale Monitor is a new tool that will give firms exception reports for trades reported to the FINRA/NASDAQ Trade Reporting FacilityTM (TRFTM) in securities on the Short Sale Circuit Breaker list for the following circumstances:

  • Sold short, not marked exempt
  • Sold short, marked exempt
  • Sold short on an uptick
  • Marked exempt, but not on the circuit breaker list

Users can set up profiles to receive alerts via email for trades that meet any of the above criteria. In addition, firms will have 30 days of historical trade alerts and Short Sale Circuit Breaker lists.

Optional add-on data packages are also available to give firms records of their NASDAQ, BX and PSX executions in covered securities where the orders were marked Short Sale Exempt.

When will functionality be available?

The Short Sale Monitor system will be available to users beginning Thursday, February 24, 2011. Data will begin flowing through on Monday, February 28, 2011, in conjunction with the effective date of the rule.

Beginning February 28, 2011, firms will have the ability to receive alerts for trades. In addition, firms will have access to real-time and historical changes to the Short Sale Circuit Breaker list.

How do I connect to the Short Sale Monitor?

To access the Short Sale Monitor, firms must have a NASDAQ Workstation or Weblink ACT 2.0 terminal.

What will pricing be after the conclusion of the free trial?

The Short Sale Monitor will be free through March 2011. Beginning April 1, 2011, the Short Sale Monitor will be accessible for $750 per MPID, per month, subject to filing with the SEC. The add-on packages are priced as follows:

  • NASDAQ - $150 per MPID, per month
  • PSX - $50 per MPID, per month
  • BX - $50 per MPID, per month

To subscribe to the add-on packages, a firm must first subscribe to the Short Sale Monitor.

How do I subscribe?

Firms can sign up now by filling out the Front End Request Form on the NASDAQ OMX Trader website. Upon subscription, you will receive an email confirming your access. The same form can be used if you would also like to sign up for a NASDAQ Workstation or Weblink ACT 2.0 terminal.

Where can I find additional information?

FINRA and TRF (Trade Reporting Facility) are trademarks of Financial Industry Regulatory Authority, Inc.; FINRA/NASDAQ TRF™ is used under license from Financial Industry Regulatory Authority, Inc.

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