Nasdaq BX, Inc. filed a proposed rule change with the Securities and Exchange Commission to amend its anti-internalization functionality. The proposal aims to enhance the existing system, allowing participants to prevent orders they enter directly into the system and those entered through Sponsored Access from executing against each other. This change is intended to help firms better manage their trades and avoid unwanted transactions like wash sales. The new functionality is voluntary, and firms can choose to opt-in to these self-match prevention features based on their needs.
Simple Explanation
Nasdaq BX, a stock exchange, wants to change a rule to stop the same person's buy and sell orders from accidentally matching up, which can help people avoid making unwanted or confusing trades. This change is optional, so companies can choose if they want to use it or not.