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Thursday, May 29, 2025

Equity Trader Alert #2025 - 32
Nasdaq to Introduce New Initial ETP Open

Category:

  • New Functionality

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On July 2, 2025 the Nasdaq Stock Market (Nasdaq) will introduce the new Initial ETP Open. This will allow for an optional functionality to initiate a new issue halt on the launch day of an Exchange-Traded Product, similar to the halt used in initial public offerings (“IPOs”).The ETP issuer launching the ETP on the first day of trading would have the option to open the security at the start of Pre-Market Hours at 4:00 a.m. Eastern Time (“ET”), which is the case today, or delay the opening of the security pursuant to the proposed Initial ETP Open process until Market Hours.

This rule will allow Nasdaq to give issuers the option to open ETPs for quoting starting at 9:30am, in which case the first auction can begin at 9:40am at the earliest, and at the latest 9:45am. The ETP will open between 9:40am and 9:45am depending on the readiness of the DLP. In which case, the ETP will be available for regular trading. The ETP issuers and DLPs in question will have access to our Initial ETP open tools.

For more information, please see the Proposed Rule Change.

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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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