Pending SEC approval, the EDGX ExchangeSM (EDGX®) and EDGA ExchangeSM (EDGA®) will be modifying the behavior of the Opening Process for NYSE and NYSE MKT listed securities and the Halt Re-Opening Process for all securities.
Currently, the Opening Process for NYSE and NYSE MKT listed securities and the Halt Re-Opening Process for all securities require a trade from the listing exchange followed by an updated NBBO to initiate the process. With the current process, the Opening and Re-Opening Processes can be delayed when the listing exchange opens with a quote only and does not execute any trades.
A change will be made to initiate the Opening Process and Halt Re-Opening Process if no first trade is reported by the listing exchange within one second of the publication of the first two-sided quotation by the listing exchange. This addition will facilitate the timely opening of lightly traded securities when the listing exchange lacks orders from which to execute a trade.
Please note that no changes will be made to the Opening Processes for NASDAQ, ARCA, and BATS listed securities which are initiated after the first NBBO published after 9:30am.
Implementation Dates
Direct Edge anticipates that the changes described in this notice will be in production by October 2014, pending SEC approval. When an exact date has been determined, a rollout schedule will be released to members.
More Information
- Refer to EDGX Rule Filing SR-EDGX-2014-18.
- Refer to EDGA Rule Filing SR-EDGA-2014-20.