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Monday, December 10, 2018

Equity Trader Alert #2018 - 101
Nasdaq to Introduce Midpoint Trade Now Functionality

Category:

  • New Functionality

Markets Impacted:

Contact Information:

Pending SEC approval, effective January 14, 2019, The Nasdaq Stock Market (“Nasdaq”) will introduce a new “Midpoint Trade Now” option. The Midpoint Trade Now option will provide participants the ability to specify on the original order that once posted on the Nasdaq book, if the order is locked by a Midpoint Peg Post-Only (“MPPO”) contra-side order, the resting order will attempt to remove liquidity against locking contra-side orders up to its available size; any unexecuted portion of the resting order will remain posted at its price, with no change in order priority.

For a firm with Self-Match Prevention enabled, if a resting order is locked by a contra-side order for the same MPID and a MPPO Trade Now (new functionality) or a Trade Now (existing functionality on Nasdaq and Nasdaq BX) message is sent for the initial order:

  • The cancel oldest option will result in the full size of the initial order to be canceled back to the customer.
  • The cancel newest option will result in the full size of the contra-side order to be canceled back to the customer.

Testing Opportunities

Testing is currently available in the Nasdaq Testing Facility (NTF). Production testing will be available during the January 12, 2019 UAT.


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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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