NSDQ (NASDAQ)

NASDAQ Single Book Integration

Recently, NASDAQ completed a system integration that is expected to improve execution quality through enhanced speed, efficiency, and deeper liquidity. The integration including the creation of a single pool of liquidity by combining:

NASDAQ Market Center (SuperMontage)
BRUT ECN
INET ECN

This new combined pool of liquidity is called NASDAQ Single Book, and non-attributed quotes from the Single Book will display as NSDQ in your Trading Window. To obtain the full depth-of-book for Single Book, you will need to upgrade to Level II data service by going to the main menu and clicking Schwab.com > Subscribe to Level II.

General Information

NSDQ does NOT accept Good 'Till Canceled orders and any open orders will be canceled when trading hours end at 8:00 p.m. ET.
Day order available if ECN/NSDQ Auto Cancel time is set to 0.
Default cancellation time: 180 seconds.
Trading Hours 7:00 a.m. to 8:00 p.m. ET

NSDQ Order Routing

Order Types	Description
Limit	Matched against existing orders on the NASDAQ Single Book or routed to other exchanges if a better price is available.
Limit Invisible	These orders are never displayed on the book or in Level II.
*Market Peg	Pegs the order price to the ask if buying or to the bid if selling, meaning the order price will automatically adjust as the bid or ask moves until the order executes or the stock trades beyond your limit price. Orders may be adjusted a penny up or down to avoid locking the market. EXAMPLE XYZ is currently quoted at 20 bid x 20.05 ask. A Market Peg order to buy XYZ with a limit of 20.10, will be submitted at 20.05. If the quote changes to 20.05 bid x 20.10 ask, the order price would change to 20.10. If the order is not executed, it will not update beyond the limit price and will remain posted at 20.10.
*Primary Peg	Pegs the order price to the bid if buying or the ask if selling OTC securities, or the best exchange bid/ask for Listed securities. The order price will automatically adjust as the bid or ask moves until the order executes or the stock is priced beyond your limit price. EXAMPLE XYZ is currently quoting at 20 bid x 20.05 ask. A Primary Peg order to buy XYZ with a limit of 20.05, will be submitted at 20. If the quote changes to 20.05 bid x 20.10 ask, the order price would change to 20.05. If the order is not executed, it will not update beyond the limit price and will remain posted at 20.05.

Times in Force	Description
Day	Can be entered after 7:00 AM ET and expire at the end of the extended trading day (8:00 p.m. ET)
IOC	Portions of the order not filled immediately upon reaching the market are canceled.

Special Conditions	Description
*Min Qty	A special condition that specifies the minimum execution quantity the client will accept (with any amount up to the specified Quantity thereafter). Available for limit IOC orders only.
*Max Floor	Specifies the reserve size for the order. Must be a round lot equal to or less than the order quantity. Reserve size has no time priority in Level II. Only the displayed portion of the order will have time priority. EXAMPLE You enter a bid with 5,000 as the total quantity, but 1,000 as the Max Floor value. Your order will display as 1,000 shares, but if yours is the only bid when an offer arrives for 10,000 shares at your price, your entire 5,000 shares will execute. However, if 3 other bids for 3,000 shares each were behind you at the same price, only your displayed 1,000 would execute, along with 9,000 shares from the other three bids.
*Peg Diff	Added to the bid or offer to produce the actual order price. Allows more flexibility in your order. EXAMPLE To peg the offer minus .02, Peg Diff must equal -0.02 (the negative sign is required).

Special Conditions

Description

*Min Qty

A special condition that specifies the minimum execution quantity the client will accept (with any amount up to the specified Quantity thereafter). Available for limit IOC orders only.

*Max Floor

Specifies the reserve size for the order. Must be a round lot equal to or less than the order quantity. Reserve size has no time priority in Level II. Only the displayed portion of the order will have time priority.

EXAMPLE You enter a bid with 5,000 as the total quantity, but 1,000 as the Max Floor value. Your order will display as 1,000 shares, but if yours is the only bid when an offer arrives for 10,000 shares at your price, your entire 5,000 shares will execute.

However, if 3 other bids for 3,000 shares each were behind you at the same price, only your displayed 1,000 would execute, along with 9,000 shares from the other three bids.

*Peg Diff

Added to the bid or offer to produce the actual order price. Allows more flexibility in your order.

EXAMPLE To peg the offer minus .02, Peg Diff must equal -0.02 (the negative sign is required).

* Features only available when Spec Cond & Brackets is checked in the Trading window.

The information provided on this page is subject to change at any time. To get the most current information please go to the NASDAQ web site.