Type:Notice
Citation:90 FR 10001
Reading Time:about 35 minutes
The Securities and Exchange Commission has received a proposed rule change from The Nasdaq Stock Market LLC. This change would allow for a new trading halt feature for Exchange-Traded Products (ETPs) on their launch day, similar to the process used for IPOs. The proposed rule is designed to aid efficient price discovery and protect against unexpected volatility by enabling the ETP issuer to halt trading for a specified period before manually opening it. Nasdaq aims to implement this new feature by the second quarter of 2025.
Simple Explanation
Nasdaq wants to add a button that stops trading of new stock products for a while on their first day, to make sure prices start off right and don't get too crazy.