Sponsored Access

 

Sponsored Access Update: January 14, 2010

 

On January 13, 2010, the Securities and Exchange Commission (SEC) approved The NASDAQ Stock Market LLC (NASDAQ) rule to modify the requirements for members that provide sponsored access.

This approved filing updates NASDAQ Rule 4611 with Amendments 1, 2 and 3 in order to improve its existing regulatory framework governing the manner in which a NASDAQ member provides other entities with access to the NASDAQ Execution System.

Although the rule proposal has been approved, the new requirements have not been implemented. NASDAQ is coordinating with the SEC to develop an appropriate implementation schedule. As stated in the proposed rule change, NASDAQ believes that all exchanges will adopt similar rules and that an industry-wide implementation is needed. Please refer to Equity Regulatory Alert #2010-1 for more information.

 

Important Note:

 

NASDAQ Rule 4611(d) governs sponsored access to The NASDAQ Stock Market LLC (NASDAQ) and requires both a User Agreement for Sponsored Access and a Notice of Consent. However, Members are not required to submit the User Agreement or Notice of Consent at this time since the approved rule is not yet implemented. Sponsoring Members may obtain one or more Market Participant Identifiers (MPIDs) for sponsored access arrangements by completing the Supplemental MPID Request Form. Please refer to Regulatory Alert #2008-43 for more information.

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