Nasdaq Proposed Rule Change for Non-Displayed Orders Credit Tier
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The Nasdaq Stock Market LLC has proposed a rule change to update its transaction fee structure for non-displayed orders that provide liquidity. This change involves extending the current credit tier's expiration date and updating the baseline month for qualification. These amendments aim to incentivize trading members to increase their non-displayed liquidity, thus enhancing market quality. The rule change is designed to be effective upon publication and is subject to solicitation of comments from interested parties.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Update the reference month for credit tier qualification from September 2025 to February 2026.
- Extend the expiration date of the credit tier from March 2026 to August 2026.
- Incentivize members to increase their non-displayed liquidity.
Obligations
What this law requires
Nasdaq must amend its transaction fees schedule at Equity 7, Section 118 to update the credit tier reference month from September 2025 to February 2026 for non-displayed orders providing liquidity
Nasdaq must extend the expiration date of the Credit Tier from March 2026 to August 2026
Nasdaq must make the proposed rule change operative on April 1, 2026, as designated by the Exchange
Nasdaq must apply the updated Credit Tier uniformly to all members that meet the specified qualification criteria (0.10% or more of Consolidated Volume through non-displayed orders and 30% or more increase relative to baseline)
Nasdaq must maintain the Credit Tier as a voluntary program for participating members