Search:
   

Tuesday, June 12, 2012

Equity Technical Update #2012 - 21
Support for Automatic Re-Entry of Price Slid Orders via OUCH Postponed

Markets Impacted:

Contact Information:

What you need to know:

  • NASDAQ, BX and PSX will postpone the introduction of automatic re-entry of price-slid orders pending additional filing with the Securities and Exchange Commission (SEC).

What is Reg NMS price sliding?

Price sliding occurs on all NASDAQ OMX® markets when an incoming, bookable order would lock or cross a protected quote at another market center. Price sliding allows orders submitted at impermissible prices to be booked in a sensible and convenient way.

How does automatic re-entry affect price sliding?

Pending SEC review, members submitting orders through OUCH ports will optionally be able to configure these ports to automatically resubmit their orders when a previously impermissible price becomes available. Previously, OUCH ports would either leave re-priced orders on the book or cancel them back to the member.

When an order is automatically resubmitted it will:

  • receive a new sequence number and timestamp to determine time priority;
  • maintain priority among other similarly price slid orders;
  • not be guaranteed time priority over other incoming orders at the same price level.

Why is the enhancement postponed?

NASDAQ, BX and PSX will file rule changes with the SEC to clarify the behavior of orders entered at a crossing price versus a locking price via OUCH ports configured for automatic re-entry. While orders entered at a locking price will be slid upon entry and then re-entered as a displayed order when the previously impermissible price becomes available, orders that cross the market will be slid upon entry and cancelled back when the locking price opens up.

When will the feature be available?

Pending SEC review, NASDAQ, BX and PSX will provide an expected production date in the near future.

How do I sign up for the feature?

Automatic resubmission is selected on a port-by-port basis. Please note: members must opt in to this feature by contacting NASDAQ OMX Trading Services at +1 212 231 5180.

Where can I find additional information?


Email Alert Subscriptions:
Nasdaq offers customers the ability to self select news delivery across various Nasdaq markets. Create and maintain a profile for updating alert preferences and contact information. Visit the enrollment form on the Nasdaq Trader website and sign up today! Please note that if you choose to unsubscribe from an email list, you may no longer receive potentially critical emails from the NASDAQ Stock Market regarding Nasdaq's trading and data products, regulatory issues or marketplace initiatives. To unsubscribe, also click on the enrollment form

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