Nasdaq PHLX LLC has proposed a rule change to enhance its anti-internalization features, which help prevent orders from the same firm from unintentionally trading against each other. This includes allowing firms with different trading strategies to prevent their orders from executing against each other by enhancing self-match prevention capabilities. The proposal also introduces a new strategy called "use remover," allowing resting orders to adopt the strategy of incoming orders, and makes various clarifications to existing rules. These changes aim to provide firms with more flexibility and control while ensuring compliance with trading regulations.
Simple Explanation
Nasdaq is making changes to a rule so that when a company buys and sells its own stuff, it doesn't accidentally end up trading with itself. These changes help companies use different ways to stop this from happening and make sure they're playing by the rules.