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Monday, August 26, 2019

UTP Vendor Alert #2019 - 9
UPDATED: LULD Plan Amendment 18 (Elimination of Double-Wide Bands) - Industry Testing and Implementation

Markets Impacted:

Products Impacted:

Contact Information:

What you need to know:

  • The Limit Up / Limit Down (LULD) Plan Participants have amended the LULD Plan via LULD Amendment 18 to change the calculation of price bands for NMS stocks between 9:30 a.m. and 9:45 a.m., and 3:35 p.m. and 4:00 p.m.
  • In the case of an early scheduled close, during the last 25 minutes of trading before the early scheduled close.

Price Band Calculations:

Price Bands for an NMS Stock are calculated, during regular trading hours, by applying the Percentage Parameter for such NMS Stock to the Reference Price, with the Lower Price Band being a Percentage Parameter below the Reference Price, and the Upper Price Band being a Percentage Parameter above the Reference Price. Currently, the Price Bands are calculated by applying double the Percentage Parameters between 9:30 a.m. and 9:45 a.m., and 3:35 p.m. and 4:00 p.m.

What is Changing?

LULD Amendment 18 eliminates the doubling of percentage parameters:

  • between 9:30 - 9:45 a.m.
  • between 3:35 - 4:00 p.m. for Tier 2 NMS stocks with a reference price above $3.00.

Tier 1 NMS stocks would continue to be subject to doubling of percentage parameters between 3:35 - 4:00 p.m. The Plan amendment also makes the LULD Plan permanent.

UPDATED: LULD Amendment 18 Industry Test/Activation Dates:

  • Industry Test: Saturday, January 25, 2020
  • Activation Date: Monday, February 24, 2020

Who should I contact for additional information?