After Hours Inside Quote Calculation To Begin February 7, 2000
As a reminder, The Nasdaq Stock Market© will begin calculating and disseminating an inside market (best bid/offer) in the after-hours trading environment on Monday, February 7, 2000. At that time, Nasdaq© will calculate a continuous inside quote throughout the after-hours session from 4:00 p.m. to 6:30 p.m., Eastern Time (ET), in those securities in which market participants have voluntarily entered quotations.
In conjunction with Nasdaq's calculation and distribution of the inside quote starting on February 7, 2000, National Association of Securities Dealers, Inc. (NASD©) members who elect to open their quotations after the regular close of the Nasdaq market will be required to comply with all applicable limit order protection and display rules (e.g., the "Manning" Rule and the SEC Order Handling Rules) while their quotes are open. Likewise, NASD members who choose to participate in after-hours trading in a non-market making capacity are specifically reminded of their continuing obligation to protect customer limit orders when trading for their proprietary accounts.
The February 7th enhancements will have no impact on the way that Nasdaq currently collects and disseminates trade information. All trades performed after 4:00 p.m., ET, are considered after-hours trades. The trade reports are appended with a ".T" to distinguish them from regular market trades. The after-hours trades affect the volume in the security, but are not incorporated into the Last Sale price and do not affect Index calculations or mutual fund net asset values (NAVs). However, several market data vendors have adjusted their systems to capture the ".T" trades and are displaying them to the investing community.
|
