Nasdaq has formally proposed their new Extended Life Priority Order Attribute . Before we explain why we think this is just another Nasdaq order type that will leak information about retail and institutional investors, it is important to note that this is NOT a universal speed bump that all orders must pass through.  This new Nasdaq order type is an optional order that only some customers will be able to use.    The Nasdaq proposal essentially will reward queue position to certain orders that will not cancel or revise for at least one second.  If an extended life order remains untouched for at least 1 second, then that (more…)

  The SEC has decided to approve Nasdaq’s rule change for how they treat post-only orders.  Before we talk about why they approved this proposal, we wanted to highlight Nasdaq’s response to our comment letter on this proposal (Themis’ letter was the only comment letter that the SEC received). If you recall, Nasdaq had proposed that post-only orders that interact with non-displayed liquidity should no longer be price slid but instead should be allowed to post at the locking price of the non-displayed order.  In their original proposal, Nasdaq stated that the price sliding behavior that has existed for the (more…)