Friday, September 07, 2012
Equity Technical Update #2012 - 27
Testing for Technology Enhancements Available Saturday, September 15, 2012
What you need to know:
What will be offered?
On Saturday, September 15, 2012, NASDAQ OMX® will support testing of upcoming equities market functionality enhancements:
- Market Maker Peg Order Type on The NASDAQ Stock Market® (NASDAQ®)
- Simultaneous Spray Routing on The NASDAQ Stock Market® (NASDAQ®), NASDAQ OMX BXSM (BXSM) and NASDAQ OMX PSXSM (PSXSM)
- Primary Pegs with Offsets will now be required to be non-display on The NASDAQ Stock Market® (NASDAQ®), NASDAQ OMX BXSM (BXSSM) and NASDAQ OMX PSXSM (PSXSM)
What are the New Market Maker Peg Orders?
These orders help Market Makers meet their quoting obligations under Rule 4613(a). With functionality similar to The NASDAQ Stock Market's other pegged order types, the MM Peg allows Market Markers to maintain attributable quotes within the thresholds set forth in Rule 4613(a) even as market prices fluctuate.
What is changing about NASDAQ's Routing Functionality?
This change in NASDAQ's order routing functionality will allow routable orders to simultaneously execute against NASDAQ available shares and route to other markets for execution of the remainder of the order. NASDAQ will execute routable orders against the NASDAQ book for available shares and simultaneously route any remaining shares to additional markets.
What is changing in regard to Primary Peg Orders?
Primary Peg Orders are orders that, once entered, adjust in price automatically, in response to changes in the inside bids or offers on NASDAQ or other exchanges, depending upon the type of Pegged Order. A Primary Peg Order specifies that its price will equal the inside quote on the same side of the market; a Market Peg Order will equal the inside quote on the opposite side of the market.
When is testing available?
On Saturday, September 15, 2012, NASDAQ OMX production systems will be available for pre-market trading in all securities at 9:00 a.m., Eastern Time (ET). On NASDAQ, the pre-market trading is followed by a market open at 9:30 a.m., ET and a market close event will be scheduled for 12:00 p.m., ET.
Do customers need to register for the test?
Yes, firms should email NASDAQ OMX Trading Services to register for the test.
Who should customers contact if they have questions during testing?
Customers should contact the NASDAQ OMX Trade Desk at +1 212 231 5100.
Where can I find additional information?
- Refer to ETU 2012-11, SEC Rule Filing SR-NASDAQ-2012-071 or the NASDAQ OMX Market Maker Peg Order Fact Sheet.
- Refer to the Trading Specifications page on the NASDAQ OMX Trader® website.
- Contact NASDAQ OMX Trading Services at +1 212 231 5180.
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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.