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Wednesday, April 22, 2009

Equity Technical Update #2009 - 14
NASDAQ Updates Protocol Specifications to Support TFTY, A New Cost Saving Routing Strategy

Markets Impacted:

  • The NASDAQ Stock Market

Contact Information:

What you need to know:

  • As announced in Equity Trader Alert #2009-28, effective Friday, May 1, 2009, NASDAQ will introduce a new routing strategy, Thrifty (TFTY), which will provide additional cost saving opportunities for customers.
  • NASDAQ has updated protocol specifications to reflect the addition of this new routing strategy.
  • The new routing strategy will route to BX, dark liquidity and the NYSE.

What is the new strategy?

As announced in Equity Trader Alert #2009-28, effective Friday, May 1, 2009, NASDAQ® will offer a new routing strategy that will access liquidity on NASDAQ OMX BXSM (BXSM), low-priced liquidity and the New York Stock Exchange (NYSE). This new strategy, referred to as Thrifty (TFTY), will provide additional cost saving opportunities for customers. For more information about TFTY functionality, refer to the Order Types and Routing Strategy Reference Guide on the NASDAQ OMX Trader® website.

NASDAQ has updated the following protocol specifications to reflect this new strategy:

  • CTCI
  • INET FIX
  • NASDAQ FIX
  • QIX
  • RASH

How will I know where the order executes?

The following liquidity codes will identify where your trade executes when you use the TFTY strategy:

Execution Venue Liquidity Code
BX B
Other X
NYSE D
NASDAQ Remove R
NASDAQ Add A

What do I need to do to prepare for this change?

No change is required by firms. Updated protocol specifications are available on the NASDAQ OMX Trader® website.

Where can I get additional information?

  • Refer to Equity Trader Alert #2009-28 for specifications.
  • Refer to the Order Types and Routing Strategy Reference Guide.
  • Refer to the Trading on NASDAQ page on the NASDAQ OMX Trader® website.
  • Refer to the protocol specifications on the NASDAQ OMX Trader website.
  • Contact Transaction Services U.S. Market Sales at +1 800 846 0477.

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