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Thursday, June 22, 2023

Equity Trader Alert #2023 - 28
Upcoming Enhancements to Market Peg order functionality on Nasdaq

Category:

  • New Functionality

Markets Impacted:

Contact Information:

Resources:

On June 29, 2023, The Nasdaq Stock Market (Nasdaq) will begin introducing performance improvements to the Market Peg order functionality it currently supports via INET FIX and RASH port order entry protocols..

The enhanced Market Peg order functionality will be rolled out over the course of several weeks. During the period of time while Nasdaq is implementing this feature, customers may notice some differences in order handling behavior, where two orders sent by the same customer (with the same order feature) may be handled differently by the system. This is expected until the feature has been fully rolled out on the exchange.

The expected changes to Market Peg behavior are as follows:

  • Non-routable pegged orders will be accepted and acknowledged at the customer entered limit price. Currently, pegged orders are acknowledged at the first price at which the order is booked on the system.

  • If there is no available price to which a non-routable pegged order can be pegged, the order will not be posted (i.e. will not be available for execution) on the Nasdaq book and will be (re-) entered once there is an available price. However, if after one second there is still no price to which the order can be pegged, the order will be canceled back to the entering party. Currently, such orders would be either rejected or posted at the pegged order’s entered limit price.

    • Please refer to the FAQ and Specifications Page for more information.

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    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.

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