27 May 2025
📈Nasdaq Proposes Trading Halt for ETPs on Launch Day
Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing of Amendment No. 1, and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Introduce Functionality To Initiate a Trading Halt for Exchange-Traded Products on Launch Day
Summary
The Nasdaq Stock Market has filed a rule change to allow Exchange-Traded Products to initiate a trading halt on their launch day, similar to initial public offerings. This change aims to improve market efficiency and investor protection by providing enhanced safeguards against unexpected price volatility during trading on launch day.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule change introduces a trading halt for Exchange-Traded Products (ETPs) on their launch day, enhancing the price discovery mechanism and potentially stabilizing initial trading prices. This change is essential for business owners and executives involved in the trading or issuance of ETPs, as it impacts compliance and operational strategies.