5 An incoming order is displayed with sizes greater than the resting CMO A non-display order is priced at the far side of the NBBO with sizes greater than the resting CMO; or An incoming order is an ISO
Subject to SEC approval, on April 3, 2023, Nasdaq will be introducing the Contra Midpoint Only (CMO).
The System will cancel a CMO Order automatically if a CMO is resting at the Midpoint on the Exchange Book, an incoming Order is priced through the price of the CMO, the CMO would otherwise trade against the incoming Order, and one or more of the following conditions apply, which the Exchange observes are indicative of a pending price shift in favor of the CMO user:
A new Display Type (OUCH 4.2 / RASH / FIX) and HandleInst (OUCH 5.0) have been introduced to enter a CMO order:
OUCH 4.2 / FIX / RASH
Display | Value |
---|---|
C | Contra Midpoint Only |
c | Contra Midpoint Only (Post Only) |
OUCH 5.0
HandleInst | PostOnly | Value |
---|---|---|
C | Contra Midpoint Only | |
C | P | Contra Midpoint Only (Post Only) |
For qualifying executions, the CMO order adding liquidity will receive a new Liquidity Flag (no change for orders removing liquidity):
Flag | Value |
---|---|
o | Contra Midpoint Only |