Nasdaq PHLX LLC has filed a proposal with the Securities and Exchange Commission to modify its pricing schedule related to the Qualified Market Maker (QMM) Program. The changes include increasing the required percentage of time a member organization must quote at the national best bid and offer (NBBO) from 10% to 15% to qualify as a QMM. This adjustment aims to boost liquidity, enhance price discovery, and overall improve the equity markets' quality. The rule change has become effective but may still be suspended by the Commission if necessary to protect investors or in the public interest.
Simple Explanation
Nasdaq wants some of the companies trading on their platform to be really good at offering the best prices. They decided these companies need to do this 15 times out of every 100 chances to get a special title, which they hope will help them all see how much things should cost and make trading better for everyone.