On August 1, 2022 the Nasdaq Stock Market (Nasdaq) will tighten the percentages used to calculate Nasdaq traded Exchange Traded Products’ (ETPs’) Opening Cross thresholds, Opening Cross Price Test thresholds, and Closing Cross thresholds from 10% to the new percentages in the below chart. Under Equity rules 4752 and 4754, Nasdaq has discretion from time to time to adjust its thresholds for Opening and Closing Crosses.
What is Changing?
| New Percentage/Threshold | |
| Opening Cross including Opening Cross Price Tests A, B, and C | Greater of 5% or $0.50 |
| Closing Cross | 3% for ETPs >$50.01 |
| Greater of 5% or $0.50 for ETPs |
This new percentage will only apply to Exchange Traded Products (ETPs).
Effective August 1, 2022 Nasdaq will use the new threshold percentages to calculate Cross threshold price ranges according to the above table. These threshold price ranges are calculated by multiplying the Nasdaq Best Bid and Offer (QBBO) Midpoint by the percentage and then subtracting and adding that price band from the Nasdaq Bid and to the Nasdaq Offer, respectively, establishing the threshold price range. The Opening Cross Price Test thresholds (Opening Price Validation Parameters) will also be decreased according to the above table.