Examples of Current Reference Price in a sentence
NOII MESSAGENameOffsetLengthValueNotesMessage Type01Alpha“I”=NOII MessageTimestamp14IntegerNanoseconds portion of timestampAuction ID54IntegerUniquely identifies the Auction for the trading day.Auction Type91AlphaType of Auction:“O” = Opening “R” = Reopening“P” = Price Improvement (PRISM) Auction “I” = Order ExposurePaired Contracts104IntegerThe total number of contracts that are eligible to be matched at the Current Reference Price.
For an IPO, however, the fourth tie-breaker used in calculating the Current Reference Price, is the price that is closest to the Issuer's Initial Public Offering Price.
The Exchange states that prior to an IPO Cross, market participants enter eligible orders for participation in the IPO Cross, and the Exchange disseminates certain information regarding buying and selling interest entered and indicative execution price information, such information is known collectively as the Net Order Imbalance Indicator or “NOII”, and includes, among other things, the Current Reference Price.
Nasdaq does not include “Close Eligible Interest” entered on its continuous book in determining the Current Reference Price pursuant to Nasdaq Rule 4754(a)(7)(A), nor does it include such orders in its dissemination of the number of shares represented by MOC, LOC, and IO orders that are paired at the Current Reference Price.
During both periods, the NOII is disseminated every five seconds.9 See Rule 4120(c)(8)(B).10 The information provided by the IPO Indicator is limited to the subscribing member firm’s orders.11 Supra note 3.12 The Exchange notes that, in situations where there is a Market Order Imbalance, the NOII does not provide a Current Reference Price, since not all market orders could be executed in the cross and therefore there is no price at which the IPO cross could occur.
For a Direct Listing, in using the Halt Cross to initiate the initial trading in the company’s securities, the Current Reference Price and price at which the Nasdaq Halt Cross will occur may be based on the most recent transaction price in a Private Placement Market where the security has had recent sustained trading in such a market over several months; otherwise the price will be determined by the Exchange in consultation with a financial advisor to the issuer.
Because a Direct Listing with a Capital Raise is similar to an IPO in that the company sells securities in the offering, the proposed rule change provides that the forth tie-breaker in calculating the Current Reference Price for such security is the price that is closest to the price that is 20% below the lowest price of the price range disclosed by the issuer in its effective registration statement, which is the minimum price at which the Halt Cross will occur.
In the case of the initial pricing of a security that traded in the over-the-counter market pursuant to FINRA Form 211 immediately prior to the initial pricing, the price that is closest to the most recent transaction price in that market.Notwithstanding the foregoing, the Order Imbalance Indicator will not include the Current Reference Price if there is a Market Order Imbalance.(B) – (G) No change.(4) – (6) No change.(b) Processing of Nasdaq Halt Cross.
Finally, the Commission believes that it is reasonable to utilize the most recent transaction price in the OTC market, which could be predictive of the price that will develop upon listing of the security on the Exchange, as the fourth tie-breaker for determining the Current Reference Price and the Cross price for a security transferring from the OTC market.
The purpose of the proposed rule change is to modify BX Chapter VI, Section 1 and Section 8 to update or add definitions, which include Current Reference Price, BX Opening Cross, Eligible Interest, Valid Width National Best Bid or Offer (‘‘Valid Width NBBO’’), Away Best Bid or Offer (‘‘ABBO’’), and On the Open Order (‘‘OPG’’).