Search:
   

Wednesday, July 1, 2009

Equity Trader Alert #2009 - 46
Important: NASDAQ OMX Provides an Update on Self Match Prevention

Markets Impacted:

  • The NASDAQ Stock Market
  • NASDAQ OMX BX

Contact Information:

What you need to know:

  • As announced in Equity Trader Alert #2009-43, NASDAQ OMX will introduce Self Match Prevention functionality for The NASDAQ Stock Market and NASDAQ OMX BX.
  • Self Match Prevention will now be effective Monday, August 3, 2009.
  • The “Q” Cancel Order Reason has been updated in the INET FIX, RASH and OUCH protocol specifications to reflect the Self Match Prevention functionality.

What is changing?

As announced in Equity Trader Alert #2009-43, NASDAQ OMXSM will introduce Self Match Prevention functionality for The NASDAQ Stock Market® and NASDAQ OMX BX. Self Match Prevention will now be available on Monday, August 3, 2009.

This functionality will allow firms to prevent two orders with the same Market Participant Identifier (MPID) from executing against each other.

Have the protocol specifications been updated?

Yes, the “Q” Cancel Order Reason has been updated in the INET FIX, RASH and OUCH protocol specifications to reflect the anti-internalization functionality.

How does this affect my firm?

Firms may opt-in to using the Self Match Prevention functionality on a per MPID basis. Firms must complete the updated NASDAQ Port Request Form and/or BX Port Request Form for each MPID in order to opt-in to this functionality.

What is the behavior of the functionality?

Self Match Prevention allows firms to execute shares until the order would execute against the same MPID, and then cancels the remaining shares back.

For example, MPID A enters a 1,000 share order on the NASDAQ® book to execute at $10.01. The shares will execute in the following manner:

MPID A Buy Orders Sell Orders on the Book in Price/Time Priority Action
Order         MPID Order         MPID  
MPID A    200 @ $10.01 200 @ $10.01    MPID B Executes
MPID A     200 @ $10.01 200 @ $10.01    MPID C Executes
MPID A    200 @ $10.01 200 @ $10.01     MPID A Order cancels back with 600 unexecuted shares
MPID A    200 @ $10.01 200 @ $10.01    MPID D No execution

Where can I find additional information?


Email Alert Subscriptions:
Nasdaq offers customers the ability to self select news delivery across various Nasdaq markets. Create and maintain a profile for updating alert preferences and contact information. Visit the enrollment form on the Nasdaq Trader website and sign up today! Please note that if you choose to unsubscribe from an email list, you may no longer receive potentially critical emails from the NASDAQ Stock Market regarding Nasdaq's trading and data products, regulatory issues or marketplace initiatives. To unsubscribe, also click on the enrollment form

Please follow Nasdaq on Facebook RSS and Twitter.

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.

View NASDAQTrader.com Mobile