On May 14, 2025, Nasdaq reported it will introduce price protections for the halt cross process on Jul. 14, 2025; align halt cross process with other auctions run by exchange.
Introduces price protections to ensure that stocks re-open at appropriate price level.
Structure of the limit-up-limit-down (LULD) auction collar message is not changing.
Testing is currently available; Saturday UAT production testing available Jun. 7, Jul. 12.
Document dated May 14, 2025, received from Nasdaq May 21, summarized May 22.
On Oct. 28, Nasdaq proposed establish halt cross price protections.
Nasdaq proposed rule to establish halt cross price protections, to prevent clearly erroneous executions after reopening, ensure securities priced with reasonable levels.
Proposed Rule
Introduce price protections to halt cross process similar for other auctions conducted.
To implement, proposed to modify by adding proposed halt cross protections to Nasdaq Equity 4, Equity trading rules, Section 4120, and replace prior procedures.
Add information about dissemination of auction reference prices and auction collars in Nasdaq Rule 4753(a)(3); add rules for modified closing cross in Rule 4754(b)(7).
Propose to establish hybrid closing cross and introduce related price protections.
Removed references to limit-up-limit-down (LULD) closing cross in Rule 4702 and 4755
Provisions clarified how auction reference prices and auction collars are disseminated.
Additionally, clarified language about cancellation of IOC orders for halted securities.
Specifying closing cross shall include LULD closing cross and the hybrid closing cross.
Amending language related to handling of late limit on close (LOC) orders in Rule 4754
Modified the priority for orders participating in the LULD Closing Cross in Rule 4754.
Consultation
Comments must be submitted within 21 days after publication in the federal register.
Nov. 14, 2024 SEC Proposal
On Nov. 14, 2024, SEC issued notice of Nasdaq proposal for 21 day comment period.
Nov. 20, 2024 Fed Reg Proposal
On Nov. 20, 2024, SEC published proposal in federal register, comments due Dec. 11.
Dec. 18, 2024 SEC Longer Period
On Dec. 18, 2024, SEC designated longer period to take action, until Feb. 18, 2025.
Dec. 26, 2024 Extension
On Dec. 26, 2024, SEC designated longer period to take action, in federal register.
Feb. 4, 2025 SEC Order of Approval
On Feb. 4, 2025, SEC issued order approving proposal re halt cross price protections.
Feb. 10, 2025 SEC Fed Reg Approval
On Feb. 10, 2025, SEC published approval of Nasdaq proposal in the federal register.
May 2025 Nasdaq Trader Alert
On May 14, 2025, Nasdaq reported it will introduce price protections for the halt cross process on Jul. 14, 2025; align halt cross process with other auctions run by exchange.
Introduces price protections to ensure that stocks re-open at appropriate price level.
Structure of the limit-up-limit-down (LULD) auction collar message is not changing.
Testing is currently available; Saturday UAT production testing available Jun. 7, Jul. 12.
Document dated May 14, 2025, received from Nasdaq May 21, summarized May 22.
