Search:
   

Friday, September 22, 2023

Equity Trader Alert #2023 - 50
Upcoming Enhancements to Discretion order functionality on Nasdaq

Category:

  • New Functionality

Markets Impacted:

Contact Information:

Resources:

On or around October 3, 2023, The Nasdaq Stock Market (Nasdaq) will begin introducing performance improvements to the Discretion order functionality it currently supports via INET FIX and RASH port order entry protocols.

The enhanced Discretion order functionality will be rolled out over the course of several weeks. During the period of time while Nasdaq is implementing this feature, customers may notice some differences in order handling behavior, where two orders sent by the same customer (with the same order feature) may be handled differently by the system. This is expected until the feature has been fully rolled out on the exchange.

The expected changes to Discretion behavior are as follows:

  • Upon entry, non-routable discretionary orders will first post onto the book at its entered limit price; thereafter, the discretionary portion of the order becomes active when contra-side shares are available within the discretionary price range and will attempt to execute against such shares on the book (with a size equal to that of the available contra-side shares), with any remaining shares of the discretionary order kept posted on the book. If the discretionary portion of the order is not fully executed after becoming active, the resting portion of the discretionary order will be replaced on the book to its full leaves quantity, receiving a new timestamp.

Currently, the discretionary order will attempt to execute against any available contra-side shares on the book within its discretionary price range, upon entry; if the discretionary order is not fully executed, any remaining shares of the discretionary order will then post to the book. Once posted, the discretionary portion of the order will become active when shares are available within the discretionary price range, with the whole size of the discretionary order becoming unavailable on the book; any unexecuted shares of the IOC order will then re-post on the book.

Please refer to the FAQ and Specifications Page for more information

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