Nasdaq Updates Order Processing After Closing Cross

OREANDA-NEWS. Subject to SEC approval, Nasdaq will make changes related to the processing of orders submitted after the cross completes. The roll out of these changes will start August 17 and be completed by August 31, 2015. The changes outlined below will replace those that were previously announced in Equity Trader Alert #2015-43.

Nasdaq will no longer accept Market Hours Day (MDAY) or Good till Market Close (GTMC) orders after the cross completes for a given symbol. MDAY and GTMC orders received after the cross completes for a given symbol will be canceled immediately.

Currently, orders with a Time in Force (TIF) of Good till Market Close sent after the closing cross completes in a particular security are converted to System Hours Immediate or Cancel orders. These orders will no longer be accepted by Nasdaq after the cross completes for the given symbol.

Currently, orders with a Time in Force (TIF) of Market Day (defined as orders good until the end of regular market hours trading) sent after the closing cross completes in a particular security are not always rejected or cancelled. Instead, depending on the type of port used to enter the order, they are either modified or rejected:

• OUCH, FLITE, and RASHPort: converted into an IOC order
• INET FIX: Converted into System Hours Day order
• QIX and SUMO FIX: Rejected

These orders will no longer be accepted by Nasdaq after the cross completes for the given symbol.

The BX and PSX markets will also no longer accept orders with a GTMC Time in Force (TIF) after market close. Currently, both BX and PSX do not accept orders with a MDAY TIF after market close.

Nasdaq is making no changes to the Closing Cross.

As a result of the change above participants may receive new cancel codes “E”.

Cancel reason “E” = closed

Please see the updated trading specifications here.

Testing Opportunities

• Currently available in the Nasdaq Testing Facility (NTF)
• Will be available for the August 15^th UAT