Nasdaq Proposes Monthly Review of Professional Orders
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
Nasdaq plans to change the review period for Professional orders from quarterly to monthly. This means that the tracking and reclassification of orders that average over 390 trades daily will now occur monthly instead of quarterly. The change aims to ensure that customer designations as 'Professional' happen more quickly, better reflecting their trading activity.
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Key Changes
- Review period for Professional orders changes from quarterly to monthly
- Reclassification of orders averaging over 390 trades daily happens more frequently
- Ensures quicker application of Professional designations
Obligations
What this law requires
Participants must conduct a review of their Public Customers' activity on a monthly basis to determine if any customer has averaged more than 390 orders per day during the previous month.
If a Public Customer is identified as averaging more than 390 orders per day during a month, Participants must change the designation of the customer's orders to Professional within five days following the end of that month.
Participants must ensure that customers' orders are properly marked as either Public Customer orders or Professional orders based on the monthly review.
Participants must maintain compliance with FINRA Rules 2090 (Know Your Customer) and 2111 (Suitability) while assessing eligibility for Professional designation.
The proposed amendments shall become effective on July 1, 2026, for the monthly review requirements.