Tuesday, February 16, 2016

Equity Trader Alert #2016 - 30
Nasdaq to Launch Small Cap Market Quality Pilots

Category:

  • Pricing

Markets Impacted:

Contact Information:

Small Cap Incentive Pilot (“SCIP”)


Effective Friday, April 1, 2016, and pending filing with the SEC, Nasdaq will introduce a Small Cap Incentive Pilot for Nasdaq Market Makers registered in Nasdaq-listed symbols with a market cap less than $100 million. Details include:

  • Nasdaq Market Markers registered in a SCIP symbol will receive a displayed liquidity rebate of $0.0005 per share (“SCIP Rebate”) if their percent of time at the National Best Bid or Offer is above 50% (“NBBO Test”) for the month. The SCIP Rebate will be in addition to all other applicable displayed rebates.
  • There will be no fee for all quotes and orders executed in the Nasdaq Opening or Closing Cross, or any other cross (e.g. Halt, LULD) for Nasdaq Market Makers that meet the NBBO Test in SCIP symbols. All quotes and orders excludes Market-on-Close and Limit-on-Close orders executed in the Nasdaq Closing Cross and Market-on-Open, Limit-on-Open, Good-till-Cancelled, and Immediate-or-Cancel orders executed in the Nasdaq Opening Cross.

The eligible symbols and liquidity codes will be announced on March 1, 2016. Eligible securities must have a market cap of less than $100 million (the “Threshold”) as of February 29, 2016. The Exchange will add or remove symbols based on the Threshold every six months and announce any changes via an Equity Trader Alert. The Exchange may also adjust the Threshold periodically via a rule filing based on the results of the SCIP.


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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 $12 trillion. To learn more, visit: business.nasdaq.com.