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Friday, October 19, 2018

Equity Trader Alert #2018 - 82
REMINDER: Nasdaq to Implement Closing Cross and NOII Changes on October 29, 2018

Category:

  • New Functionality

Markets Impacted:

Contact Information:

Nasdaq has received SEC approval and, as announced in Equity Trader Alert #2018 - 61, Nasdaq will be updating the cutoff times for the Nasdaq Closing Auction Process on October 29, 2018. Currently, Nasdaq stops accepting entry, cancellation or modification of Market-On-Close (MOC) orders at 3:50 p.m. ET, and accepts Limit-On-Close (LOC) orders until 3:55 p.m. ET. Nasdaq will extend the Closing Cross Cutoff for MOC and LOC orders to 3:55 p.m. ET and 3:58 p.m., respectively.

On October 29, 2018, Nasdaq will also be updating the Net Order Imbalance Indicator (NOII) to begin broadcasting imbalance information at 3:55 p.m. ET, and increasing the frequency of dissemination from 5 seconds to every second. The increase in frequency of the NOII dissemination will also be applied to all other Nasdaq Crosses (i.e. Opening, Halt and IPO).

New Cutoffs time will be:

Eastern Time (ET)

Pre-3:55 p.m. Nasdaq begins accepting Market-On-Close, Limit-On-Close, and Imbalance-Only orders at any time prior to the cutoff time.
3:55 p.m. Dissemination of closing information begins.
  • Nasdaq stops accepting entry, cancellation or modification of Market-On-Close orders
  • Limit-On-Close orders may be entered until 3:58 p.m., but may not be cancelled or modified
  • Imbalance-Only orders may be entered until 4:00 p.m. but may not be cancelled or modified
3:58 p.m. Nasdaq stops accepting entry of Limit-On-Close orders.
4:00 p.m. Closing process begins.

Testing Opportunities

Testing is currently available in the Nasdaq Test Facility (NTF).


* LOC orders entered between 3:55 p.m. to 3:58 p.m. ET will be accepted at its limit price, unless its limit price is more aggressive than the 3:55 p.m. Reference Price, in which case the LOC order will have the option to either (1) be re-priced to the 3:55 p.m. Reference Price (2) reject depending on MPID/Port Setting.

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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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