The Nasdaq Stock Market LLC (Nasdaq) has filed a proposed change to Nasdaq Rule 4756(c)(2) with the Securities and Exchange Commission. Rule 4756(c)(2) provides that, for each security listed on Nasdaq, the aggregate size of all quotes and orders at the best price to buy and sell will be transmitted for display to the appropriate network processor, unless the aggregate size is less than one round lot.
The proposed amendment to Rule 4756(c)(2) provides that Nasdaq will be allowed to aggregate odd-lot-sized displayed orders at multiple price points that equal at least a round lot for purposes of transmitting Nasdaq’s best ranked displayed order(s) to the appropriate processor. Although the amendments to Rule 4756(c)(2) were effective upon filing, Nasdaq has designated the proposed amendments to be operative in the first quarter of 2019, and will announce the exact date at least 30 days prior to such effective date.
On November 28, the SEC issued a notice regarding the proposed amendment to Nasdaq Rule 4756(c)(2) and requested comments regarding such rule change, including whether the proposed rule change is consistent with the Securities Exchange Act of 1934. All comments should be submitted on or before December 26.
The proposed Rule change is available here.
The SEC request for comments is available here.