Set the opening and closing prices based on supply and demand in the marketplace. Offer superior liquidity and transparency.
Overview
The NASDAQ Opening and Closing Crosses are price discovery facilities that cross orders at a single price. The crosses enable market participants to execute on-open and on-close interest and provide unparalleled transparency. Market makers and other industry professionals have repeatedly demonstrated their willingness and ability to offset imbalances that are entered into the cross. The crosses generate opening and closing prices that are widely used by industry professionals including Russell Indexes, Standard & Poor’s and Dow Jones.
All nationally-listed securities are eligible for the Crosses. All new listings
on NASDAQ are added to the Opening and Closing Crosses on the first day of
trading.
On Monday, November 5, 2007, NASDAQ completed its roll-out by adding
approximately 5,000 additional securities into the NASDAQ Opening and Closing
Crosses. Please refer to
Head Trader Alert #2007-220
for complete details.
NASDAQ Intraday Crosses and Post-Close Cross
Building on the success of the Opening and Closing Crosses, NASDAQ
has also launched the Intraday and Post-Close Crosses, which are fully
anonymous, deeply liquid and allow for large block trades without moving the
market. Find out
more.
Order Types
All order types below are accepted beginning at 7:00 a.m., ET,
each day.
ON-OPEN
ORDERS
Specifically request an execution at the opening
price. Can be limit-on-open (LOO) or market-on open (MOO).
IMBALANCE-ONLY
OPEN ORDERS
Provides liquidity intended to offset on-open orders during the Opening Cross.
Must be priced (limit), no market IO orders.
IO buy/sell orders only execute at or above/below the 9:30 a.m., ET, offer/bid.
ON-CLOSE
ORDERS
Specifically request an execution at the closing
price.
Can be limit-on-close (LOC) or market-on-close (MOC).
IMBALANCE-ONLY
CLOSE ORDERS
Provides liquidity intended to offset on-close
orders during the Closing Cross.
Must be priced (limit), no market IO orders.
IO buy/sell orders only execute at or above/below the 4:00 p.m., ET, bid/ask.
NASDAQ disseminates Opening Cross Net Order Imbalance information every five
seconds between 9:28 and 9:30 a.m., Eastern Time (ET), and Closing Cross
Net Order Imbalance information between 3:50 and 4:00 p.m., ET. This
data is available by subscription only via:
The Net Order Imbalance Indicator makes information available that allows for
increased liquidity and better trade performance. NOII can have a very positive
impact on traders’ ability to perform effectively in a highly competitive
environment. It provides users with invaluable details about the opening and
closing orders and the likely opening and closing prices of a security, insight
that can help reveal new trading opportunities.
Firms should contact their market data vendors and service bureaus directly
regarding the availability of NASDAQ Net Order Imbalance information.
