Wednesday, June 9, 2010

Equity Technical Update #2010 - 9
Single Stock Trading Pause Testing Available Saturday, June 12, 2010

Markets Impacted:

Contact Information:

What you need to know:

What will be offered?

On Saturday, June 12, 2010, NASDAQ OMX will offer testing for the Single Stock Trading Pause functionality announced in Equity Regulatory Alert #2010-3 for The NASDAQ Stock Market® and NASDAQ OMX BXSM (BXSM).

Firms should email NASDAQ OMX Trading Services to register for the test.

When is testing available?

NASDAQ OMX production systems will be available for pre-market trading in all securities at 9:00 a.m., Eastern Time (ET), followed by a market open at 9:30 a.m., ET.

A market close event will be scheduled for 12:00 p.m., ET.

What functionality will be tested?

NASDAQ OMX will trade and trigger Single Stock Trading Pauses between 9:45 a.m. and 11:35 a.m., ET, in three S&P 500 Index securities: NOVL, JDSU and CPWR. During this time, NASDAQ OMX asks that firms do not submit orders in these securities. All other securities will be available for testing.

NASDAQ OMX plans to attempt the following scenarios using the above securities:

  • Pause each security at least once and then resume trading via the NASDAQ Halt Cross process.
  • Extend the trading pause beyond the initial five-minute quote-only period at least once.
  • Extend the trading pause beyond the ten-minute trading pause maximum (five one-minute extension periods) at least once.
  • Transition to a regulatory halt while a Single Stock Trading Pause is in effect at least once.

Will Single Stock Trading Pauses be able to be initiated by firms in other NASDAQ-listed S&P 500 securities?

Yes, firms may trade all of the other S&P 500 securities and pauses will be triggered if the trading meets the pause threshold.

Will any other pauses or halts be triggered?

Yes, a regulatory halt will be issued to demonstrate the difference in Reason Codes and Action Messages from the Single Stock Trading Pause functionality.

What data feeds will carry the test data?

Yes, NASDAQ OMX will support the following direct data feeds on June 12th:

  • UTP Quotation Data Feed (UQDF)
  • UTP Trade Data Feed (UTDF)
  • NASDAQ TotalView-ITCH
  • NASDAQ TotalView-Aggregated
  • NASDAQ Level 2
  • NASDAQ Basic / NASDAQ Best Bid and Offer (QBBO)
  • NASDAQ Last Sale (NLS)
  • NASDAQ Net Order Imbalance Snapshot (NOIS)
  • BX TotalView-ITCH
  • BX Basic / BX Best Bid and Offer (BX BBO)
  • BX Last Sale (BLS)

Please note that NASDAQ OMX disseminates data over the production data feed channels during Saturday User Acceptance Tests (UATs).

Does this testing opportunity apply to NASDAQ OMX options markets?

Yes, options participants may register for the test to monitor the effect of an equities Single Stock Trading Pause on trading on NASDAQ OMX PHLXSM (PHLX®) or The NASDAQ Options MarketSM (NOM).

Does this testing impact NASDAQ OMX PSX Saturday testing?

No, Saturday testing for NASDAQ OMX PSXSM (PSXSM) will not be impacted by this testing opportunity.

Where can I find additional information?

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