Nasdaq plans to offer Extended Trading Close

Pending SEC approval, The Nasdaq Stock Market plans to offer an Extended Trading Close (ETC), providing participants an additional opportunity to access liquidity in Nasdaq-listed securities at the Nasdaq Official Closing Price (as determined by the Closing Cross) for a limited period of time following the conclusion of the Nasdaq Closing Cross.

Nasdaq will accept and execute eligible Limit on Close (LOC) and Extended Trading Close (ETC) orders that have offsetting interest immediately following the completion of the closing auction. Starting five seconds after the close 4:00 PM E.T. (1:00 PM for half trading days), Nasdaq will disseminate information about any order imbalance that exists among orders on the ETC book, along with executed shares since the beginning of the ETC.

During the ETC, orders will match continuously at the Nasdaq Official Closing price (as determined by the Closing Cross). Orders in the ETC may be canceled or modified at any time. Matching in the ETC will be suspended for securities that trade or quote, in the post-market hours, at prices that deviate beyond a certain threshold and will not resume until trading or quoting fall back within the threshold.

ETC concludes at 4:05 PM (1:05 PM for half trading days); all orders not fully executed in the ETC will be canceled.

The data products that are impacted include:

  • Nasdaq TotalView
  • Nasdaq TotalView Aggregate
  • NOIView

Pending SEC approval, the Extended Trading Close will be launched February 28, 2022.

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