Nasdaq and NYSE Trading Rules
Chapters in this video
- 0:00 Nasdaq and NYSE rules layered on FINRA
- 1:14 Nasdaq market maker registration and two-sided quote duty
- 1:44 NYSE absolute price priority
- 2:47 Cross transactions and the NBBO limit
- 4:04 Block trade size tests: 10,000 shares or $200,000
- 5:19 What block size does NOT change about price limits
- 6:01 Publicity, prohibited dealings, and DMM conduct
- 6:37 Rapid-fire exam recap
What this video covers
- What continuous two-sided quotes mean for Nasdaq market makers, and the penalty for failing to maintain them
- Why NYSE price priority is absolute, and how time priority only breaks ties at the identical price
- What a cross transaction is, and why it must execute at or between the National Best Bid and Offer (NBBO)
- The two size tests that define an NYSE block trade: 10,000 shares or $200,000 market value, whichever is less
- What the block cross rule does allow (one member matching both sides in a single print), and what it does NOT allow (a price outside the best bid or offer)
- Why publicly displayed trading interest and zero-tolerance manipulative-trading bans apply on the NYSE floor
- What designated market maker (DMM) conduct obligations are, and how they differ from Nasdaq market maker rules
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