Nasdaq GEMX Changes Review of Professional Orders to Monthly
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This rule changes how often Nasdaq GEMX members must review customer orders to determine if they should be classified as 'Professional.' Instead of reviewing orders quarterly, the review will now occur monthly. This affects brokers-dealers who need to check if a customer places more than 390 orders daily during a month to classify them accurately for the next month.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Quarterly review of Professional Orders changed to monthly
- Members need to update order classification more frequently
- Technical amendments harmonize rules with other Nasdaq exchanges
Obligations
What this law requires
Members must review their Priority Customers' activity to determine if any have averaged more than 390 orders per day during a calendar month and classify them as Professional Orders for the next calendar month.
Members are required to change the manner in which they represent a customer's orders to Professional Orders within five days after identifying that the customer has averaged more than 390 orders per day in a month.
Members must conduct the necessary calculations to determine the daily average of orders placed by Priority Customers as part of their regular monitoring duties.
Members must ensure that they categorize orders correctly as either Priority Customer Orders or Professional Orders based on the calculated averages of orders placed.