The Securities and Exchange Commission approved a rule change proposed by The Nasdaq Stock Market LLC. This change amends Nasdaq's rules about reserve orders, which allow for certain orders to display a smaller size and replenish from an undisclosed reserve. The update clarifies how the reserve orders function when there are conflicting conditions in the Nasdaq book, ensuring they act as liquidity providers. This modification aims to remove any ambiguity and increase transparency and certainty in how reserve orders are processed.
Simple Explanation
The stock market police (Securities and Exchange Commission) said it's okay for Nasdaq, a big marketplace where people buy and sell shares, to change their rules. This change helps make sure that when people put their wishes to buy or sell secret amounts of shares, it works more fairly and clearly.