What is the newly supported functionality?

The newly supported Passive Minimum Quantity (201cMinQty201d) functionality will allow NASDAQ, BX and PSX users to request a minimum share amount for each execution received and will be supported for both IOCs and posted orders (MinQty instructions are only accepted on IOCs today). The enhanced minimum quantity order will be available on OUCH and FIX order protocols.

How does a Minimum Quantity order execute?

Upon entry, an order with MinQty instructions will remove liquidity if the specified minimum quantity of shares can be obtained. The incoming order2019s minimum quantity requirement can be satisfied by taking out a single resting order or by taking out multiple resting orders simultaneously.

If the order is not fully satisfied and has a Time-in-Force other than Immediate or Cancel, it will be booked.

What happens once a Minimum Quantity order is booked?

Once on the book, the MinQty order can only be taken out by a single, incoming order that satisfies its MinQty instruction. Multiple incoming orders cannot be bundled together to satisfy the minimum quantity for a booked MinQty order.

Upon partial execution, if the order2019s 201cleaves201d quantity is less than the MinQty instruction, the MinQty instruction will be reduced to the remaining quantity and the order becomes all-or-none. For PSX only, if the order2019s 201cleaves201d quantity is less than one round lot, the minimum quantity instruction is removed.

How will a Minimum Quantity order be prioritized?

Orders for NASDAQ and BX with MinQty instructions will be prioritized in price/time priority amongst non-displayed orders. However, if an incoming order cannot satisfy a resting order2019s MinQty instruction, the resting MinQty order will cede its priority.

PSX orders with MinQty instructions will be prioritized behind all displayed orders and non-displayed orders without a minimum quantity restriction. At a given price level, MinQty orders will be prioritized in ascending order based on their MinQty instruction. For example, a 1000 share order with a MinQty instruction of 200 will be prioritized over a 1000 share order with a MinQty of 500.

Can orders with Minimum Quantity instructions participate in auctions (i.e. open, halt, close)?

No, orders with MinQty instructions will not participate in auctions (i.e. open, halt, close).

Are orders with Minimum Quantity instructions non-displayed?

Yes, orders with MinQty instructions will always be non-displayed.

Are orders with Minimum Quantity instructions routeable?

No, orders with MinQty instructions are not routable.

Can Minimum Quantity orders take additional instructions?

Yes, MinQty orders can additionally take Mid-Point Post Only instructions. MinQty instructions must be for at least one round lot and for no more than the order's total quantity.

Which Protocols Support Minimum Quantity orders?

Please refer to the NASDAQ technical specifications for updates.

Will testing be available?

Firms may test on Saturday, November 12, 2011. NASDAQ OMX production systems will be available for pre-market trading in all securities at 9:00 a.m., ET. On NASDAQ, the pre-market trading is followed by a market open at 9:30 a.m., ET, and a market close event will be scheduled for 12:00 p.m., ET. NASDAQ2019s functionality is currently available for testing in the NASDAQ Testing Facility.

Where can I find additional information?

• Register for the upcoming U.S. Transactions Services webinar occurring on Wednesday, November 9th at 4:30 p.m., ET.
• Refer to the NASDAQ technical specifications.
• Contact NASDAQ OMX Trading Services at +1 212 231 5180.
• Contact Transaction Services U.S. Market Sales at +1 800 846 0477.