Nasdaq Texas Amends Review Period for Professional Orders
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The law amends the review period for Nasdaq Texas Participants handling Professional orders, reducing it from quarterly to monthly. This change means that any customer average exceeding 390 orders per day in any calendar month will require their orders to be designated as Professional for the following month. Participants have five days post-month-end to adjust order representations based on these findings.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Review period shortened from quarterly to monthly
- Orders exceeding 390 per day must be marked Professional for the next month
- Participants must adjust orders within five days after month's end
Obligations
What this law requires
Broker-dealers must review customer trading activity monthly to determine if orders should be classified as Professional orders based on an average of more than 390 orders per day during the month.
Nasdaq Texas Participants must monitor Public Customer orders to determine if any customer averages more than 390 orders per day during a calendar month.
Participants must designate orders for any customer who averaged more than 390 orders per day in the preceding calendar month as Professional orders for the following month.
If a customer averages more than 390 orders per day during any month, broker-dealers must represent those orders as Professional orders for the subsequent month.
Participants are required to make any changes to the manner in which they are representing customer orders within five days after the end of each calendar month if a customer is designated as Professional.