Thursday, April 19, 2012

Equity Technical Update #2012 - 14
NASDAQ OMX Introducing New Liquidity Codes for Midpoint Executions

Markets Impacted:

Contact Information:

What you need to know:

  • Effective Tuesday, May 1, 2012, The NASDAQ Stock Market® (NASDAQ®) and NASDAQ OMX BXSM (BXSM) will support additional liquidity codes for midpoint executions.
  • These are the first liquidity codes to use lowercase letters. Please refer to prior communications on lowercase liquidity codes for more information.
  • Firms should refer to the protocol specifications on the NASDAQ OMX Trader® website in preparing their systems to accept the change. NASDAQ OMX will continue to provide Equity Technical Updates as additional liquidity codes are supported.

What is changing?

Effective May 1st, 2012, NASDAQ and BX will begin to support additional liquidity codes for midpoint executions.

All order entry protocols use liquidity codes to provide customers with greater transparency for their executed orders.

Which new liquidity codes are being introduced?

NASDAQ and BX are introducing the following liquidity codes:

  • "m" - if an order removes liquidity at the midpoint
  • "k" - if a midpoint peg or a midpoint peg post only order adds liquidity

These are the first liquidity codes to use lowercase letters. Please refer to prior communications on lowercase liquidity codes for more information.

What do I need to do?

Firms should ensure that their systems are able to accept lowercase liquidity codes.

NASDAQ OMX will continue to provide Equity Technical Updates as new liquidity codes are supported. As new liquidity codes are implemented, firms should refer to the protocol specifications on the NASDAQ OMX Trader website in preparing their systems to accept the change.

Where can I find additional information?


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About the NASDAQ OMX Group:
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with more than 3,600 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit www.nasdaqomx.com.

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