- Current Regulatory Initiatives
- Market Access Rule
- Limit Up/Limit Down
- CFTC-SEC Advisory Committee
- Amendments to RegSHO
- Consolidated Audit Trail
- Large Trade Reporting
- Market Maker Obligations
- Single Stock Circuit Breakers
- Clearly Erroneous Improvements
- Market Structure Concept Release
- Market Wide Circuit Breakers
- Regulation SCI
- Contact Information
Current Regulatory Initiatives
NASDAQ OMX is always committed to working with regulators, exchanges and market participants to ensure trading is transparent and fair. To keep you informed of the ever-changing regulatory landscape of U.S. trading, refer to the information below regarding current regulatory initiatives.
|Market Maker Obligations|
NASDAQ OMX modified its rules surrounding "stub" quotes within The NASDAQ Stock Market's Market-Maker and Select Market-Maker programs. For each NMS security in which a NASDAQ member is registered as market maker, the member is required to maintain a continuous two-sided trading interest during regular market hours at prices within certain parameters expressed as a percentage reference from the National Best Bid or Offer (NBBO) as applicable (the "Designated Percentage").
On August 2, 2012, the SEC approved for use a new order type called the Market Maker Peg Order (MMPO). MPPO is designed to assist Market Makers meet their quoting obligations under Rule 4613(a). This order type will replace the AQR Tool by providing similar functionality while also meeting Reg SHO and MAR obligations. The MMPO went into effect for use October 9, 2012. AQR will be phased out by the end of 2012.
On June 14, 2012, NASDAQ OMX filed a proposed rule change to adopt a new Market Maker Peg Order that is designed to provide similar functionality available via the AQR tool. However, the new Marker Maker Peg Order is designed to also assist market makers in meeting obligations under the Market Access Rule and Reg SHO.
|Single Stock Circuit Breakers|
On June 14, 2010, in coordination with other U.S. equity exchanges, NASDAQ OMX introduced a new market-wide single stock circuit breaker functionality in S&P 500 securities. On September 14, 2010, the functionality was expanded to include Russell 1000 securities and select Exchange-Traded Products.
On June 23, 2011, the SEC approved rules to expand the functionality to the remaining Reg NMS securities and establish wider percentage price moves before a trading pause is triggered for the newly added securities (Phase III securities). The SEC also approved new market maker quoting obligations for the newly added securities. For Phase III securities, the price move required to trigger a trading pause will be 30% or more for securities priced at $1 or higher and 50% or more for securities priced less than $1. The new market maker quoting obligation for Phase III securities trading at or above $1 will be 28% away from the NBBO. The quoting obligation for Phase III securities trading below $1 will remain unchanged.
The new Limit up-Limit Down Plan will replace the existing Single Stock Circuit Breakers in phases as it rolls out.