Monday, January 23, 2023

Equity Trader Alert #2023 - 4
Nasdaq Introduces new Contra Midpoint Only (CMO) order type


  • New Functionality

Markets Impacted:

Contact Information:


Subject to SEC approval, on April 3, 2023, Nasdaq will be introducing the Contra Midpoint Only (CMO).

The system will execute a resting CMO Order against an incoming Order, unless the incoming Order is priced through the price of the CMO and one or more of the following conditions apply, which the Exchange observes are indicative of a pending price shift in favor of the CMO user:

  • An incoming order is displayed with sizes greater than the resting CMO
  • A non-display order is priced at the far side of the NBBO with sizes greater than the resting CMO; or
  • An incoming order is an ISO

A new Display Type (OUCH 4.2 / RASH / FIX) and HandleInst (OUCH 5.0) have been introduced to enter a CMO order:


Display Value
C Contra Midpoint Only
c Contra Midpoint Only (Post Only)

OUCH 5.0

HandleInst PostOnly Value
C Contra Midpoint Only
C P Contra Midpoint Only (Post Only)

For qualifying executions, the CMO order adding liquidity will receive a new Liquidity Flag (no change for orders removing liquidity):

Flag Value
o Contra Midpoint Only

For additional information, please see the Nasdaq Midpoint Liquidity Guide.

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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: