Nasdaq Amendments to BX’s Opening Process in Connection with a Technology Migration

August 5th | 2020

Nasdaq BX recently filed a proposal to change its opening process to be more like the process in place on Nasdaq Phlx. These changes are in connection with a technology migration to an enhanced Nasdaq, Inc. architecture with higher performance, scalability, and more robust functionality. The proposal, for example, seeks to provide a process for BX, when opening with a trade, that requires tighter boundaries similar to Phlx. The proposal will also align BX’s current Valid Width NBBO requirements to Phlx’s Quality Opening Markets requirements. One difference that will remain, however, is that unlike Phlx, BX will not require its Lead Market Makers to enter Valid Width Quotes during the opening.

Much of the proposal spells out amendments BX’s rules needed to document the functionality of the new processes and definitions related thereto. This filing is consistent with a trend of exchange operators rolling out consistent, highly sophisticated platforms and implementing some the best features across their markets. Thus, each market can offer a unique value proposition along with an element of technological and operational sameness simultaneously.

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