Nasdaq MRX Changes Quarterly to Monthly Review of Professional Orders
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The Nasdaq MRX is changing how it reviews professional trading orders. Instead of checking every three months, they'll now look every month. This change means that traders need to identify customers who trade above a certain volume more frequently, ensuring the correct classification and application of order advantages. Broker-dealers must continue daily assessments, but now report as professional any customer averaging more than 390 orders per day in a month.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- The review period for classifying orders changes from quarterly to monthly.
- Members must now identify and report professional orders within five days after each calendar month.
- The workflow remains the same, with daily average calculations required.
Obligations
What this law requires
Members of the Exchange must review customer order activity on a monthly basis to determine if their orders should be classified as Professional orders.
Members must conduct a monthly review of their Priority Customers' trading activity to determine if any customer has averaged more than 390 orders per day during that month.
If a Member identifies that a Priority Customer has averaged more than 390 orders per day during any calendar month, the Member must change the representation of such orders to Professional orders within five days after the end of each calendar month.
Members must change the representation of any customer's orders from Priority Customer to Professional if that customer averages more than 390 orders per day within five days after the end of each calendar month.
Members must compute a daily average of orders for Priority Customers to verify if they exceed the threshold of 390 orders per day.