Nasdaq ISE Amends Review of Professional Orders
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The new Nasdaq ISE rule changes the review frequency of Professional Orders from quarterly to monthly. Members must now review and reclassify high-frequency customer trading accounts more regularly, ensuring that orders averaging more than 390 per day are accurately designated as Professional. This change aims to better distinguish between retail and professional trading activities, maintaining fair trading practices.
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Key Changes
- Review frequency for Professional Orders changes from quarterly to monthly.
- Members must reclassify accounts with more than 390 orders per day regularly.
- Aims to maintain fair trading practices by distinguishing between retail and professional activities.
Obligations
What this law requires
Members must conduct a review of their Priority Customers' orders every month to determine if they need to be categorized as Professional Orders.
Members must review and reclassify high-frequency customer trading accounts that average more than 390 orders per day on a monthly basis.
Members must review their Priority Customers' trading activities monthly to classify orders as Professional orders if the customer averages more than 390 orders per day.
Members must notify the Exchange within five days if they identify a customer whose orders are misclassified and who has averaged more than 390 orders per day during a month.
Members must change the representation of a customer's orders from Priority Customer Orders to Professional Orders within five days upon notification that the customer has averaged more than 390 orders per day during a month.