2 Jul 2025
📈Nasdaq Proposes Enhanced Closing Price Determination for ETPs
Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Equity 4, Rule 4754(b)(4) To Modify How the Nasdaq Official Closing Price Will Be Determined for a Nasdaq-Listed ETP
Summary
The Securities and Exchange Commission has announced a proposed rule change by Nasdaq to modify how the Official Closing Price (NOCP) is determined for exchange-traded products (ETPs) with less than one round lot traded. By adopting a time-weighted average price method, the proposal aims to provide a more accurate reflection of ETP values, particularly for those with lower trading volumes.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule change affects how the Nasdaq Official Closing Price (NOCP) is determined for listed ETPs, specifically allowing for the use of time-weighted average price (T-WAM) which can enhance pricing accuracy for less actively traded products. This can impact portfolio valuations and investor decision-making.