Friday, April 16, 2021

Equity Trader Alert #2021 - 29
REMINDER: Nasdaq to Implement Enhancements to the Opening Cross Process


  • New Functionality

Markets Impacted:

Contact Information:


As approved by the SEC, Nasdaq will be introducing enhancements to the Opening Auction process effective May 17, 2021. The upcoming changes are as follows:

1. Disseminating Early Opening Auction Imbalance Information

  • The early auction information will begin disseminating at 9:25 a.m. ET and use the existing Net Order Imbalance Indicator (NOII) format.
  • The information disseminated will consist of Paired Shares, Imbalance Shares, Imbalance Direction, and the Current Reference Price.
  • The Near and Far Price information will not be published during this period and instead will be populated with “0”.
  • The frequency of dissemination will be every 10 seconds.
  • Beginning at 9:28 a.m. ET, Nasdaq will publish the NOII as it does today, including the near and far reference prices, with the frequency of dissemination being every second.

2. Update to Entry, Modification and Cancellation of MOO/LOO Orders between 9:25 a.m. ET and 9:28 a.m. ET

  • Firms will be allowed to enter all On-Open order types including MOO and LOO without any restrictions during the period when early auction information is being disseminated (between 9:25 and 9:28 a.m. ET). This will enable firms to increase their participation based on imbalance information that is disseminated after 9:25 a.m. ET.
  • The cancelation or modification of On-Open orders will not be permitted after the imbalance information has been published (9:25 a.m. ET), ensuring the auction preserves its integrity.

3. Increased Flexibility to LOO Orders

  • LOO orders may be entered until 9:29:30 a.m. ET. However, LOO orders entered after 9:28 a.m. ET will be accepted at their limit price, unless its limit price is more aggressive than the 9:28 a.m. ET Reference Price or the security’s previous day’s official Closing Price, in which case the Late LOO order will be rejected or re-priced to the more aggressive of the two prices (depending on the customer's instruction). Utilizing both the 9:28 a.m. ET Reference Price and the previous day’s official Closing Price will promote price stability and added flexibility to offset auction imbalances and enhance the price discovery process.

NOII and Auction Cutoff times will be:
Eastern Time (ET)

9:25 a.m.

Early Dissemination of Opening information begins.

  • Nasdaq continues accepting Market-On-Open, Limit-On-Open, and Imbalance-Only orders at any time prior to the cutoff time, but they may not be cancelled or modified.
9:28 a.m.

Full Dissemination of Opening information begins.

  • Nasdaq stops accepting entry of Market-On-Open orders.
  • Limit-On-Open orders may be entered until 9:29:30 a.m., but may not be cancelled or modified.
  • Imbalance-Only orders may be entered until 9:30 a.m. but may not be cancelled or modified.
9:29:30 a.m.
  • Limit-On-Open orders with a TIF other than IOC are treated as Imbalance-Only orders.
  • Nasdaq stops accepting entry of Limit-On-Open orders with a TIF of IOC.
9:30 a.m.

Opening process begins.

Testing Opportunities

Testing is currently available in the Nasdaq Testing Facility (NTF). The next production testing opportunity will be during the May 15 User Acceptance Test (UAT).

Please refer to the Specifications Page for more information.

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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: