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Wednesday, June 8, 2011

Equity Trader Alert #2011 - 31
NASDAQ Prepares for Russell Reconstitution on Friday, June 24, 2011

Markets Impacted:

Contact Information:

What you need to know:

  • On Friday, June 24, 2011, Russell Investment Group will use the NASDAQ Closing CrossSM for its annual Reconstitution.
  • There will be no system changes for the Russell Reconstitution; cut-off times and threshold amounts will remain the same.
  • Although NASDAQ® is highly confident that its systems will provide the reliability and capacity required to ensure a smooth and successful Reconstitution, NASDAQ has published contingency scenarios in order to prepare the industry for unusual market conditions.
  • NASDAQ, NYSE, NYSE Arca and NYSE Amex will hold a joint market-wide conference call during the Reconstitution on Friday, June 24th, to keep the industry informed.

When is the Russell Reconstitution?

On Friday, June 24, 2011, Russell Investment Group will use the NASDAQ Closing Cross to price NASDAQ-listed securities for the annual reconstitution of Russell Investment Group's U.S. stock indexes.

Will there be any system changes for the Russell Reconstitution?

NASDAQ will not be changing any system cut-off times or threshold percentages for the Closing Cross.

As a reminder the current Closing Cross timeline is:

Eastern Time (ET)

7:00 a.m. NASDAQ begins accepting On-Close and Imbalance-Only orders.
3:50 p.m.
  • NASDAQ stops accepting entry, cancellation or modification of On-Close orders.
  • Imbalance-Only orders may be entered but not canceled.
  • Dissemination of closing information begins.
4:00 p.m. Closing process begins

What are NASDAQ’s contingency scenarios?

As NASDAQ and the securities industry prepare for the upcoming Russell Reconstitution, NASDAQ is highly confident that its systems will provide the reliability and capacity required to ensure a smooth, successful Reconstitution.

Nonetheless, for the past several years, in advance of the Russell Reconstitution, NASDAQ has published contingency scenarios in order to prepare the industry for unusual market conditions.

Due to the unpredictability of market events, this document provides only general guidance, and NASDAQ reserves the right to modify its responses to these scenarios as necessary, without advance notification to the industry, in order to address additional unforeseen situations. The document contains:

  1. Contingency Russell Reconstitution scenarios
  2. Emergency communications media

Please refer to NASDAQ’s Contingency Scenarios for the Russell Reconstitution.

What are the market-wide call details for the Russell Reconstitution?

NASDAQ, in coordination with NYSE, NYSE Arca and NYSE Amex, will use a market-wide call to keep the industry informed throughout the afternoon of the Russell Reconstitution.

On June 24, 2011, NASDAQ, NYSE, NYSE Arca and NYSE Amex will hold an open market-wide call beginning at 3:00 p.m., ET, and lasting approximately two hours. To ensure that you are not delayed in the conference call queue as a result of the high call volume, please call in at least ten minutes early. The call details are:

Dial In: +1 866 765 5864
Passcode: Russell
Leader: David Lawn

Listen to the streaming audio via our webcast.

***Please note that this call is closed to members of the media.***

Who should I contact for more information?

For more information about the NASDAQ Closing Cross and the Russell Reconstitution:

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.

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