Nasdaq International

Question 1

The Nasdaq International Service allows market makers to publish quotes and execute trades outside the United States in:

Answer 1

■Global Market securities;

■any non-Canadian foreign security or ADR that is part of Nasdaq but not a Global Market

security; and

■ any equity security listed on a national securities exchange

Question 2

T/F - Nasdaq Capital Market securities are not part of Nasdaq International except for foreign securities and ADRs.

Answer 2

True

Question 3

European Only

Answer 3

Market makers can register as European Only

market makers, which means they can quote the stock from 3:30 am to 9:00 am ET (the European session).

Question 4

International Service

Answer 4

Market makers can also register as International Service

market makers, which means their market is good not only

for the European session, but for the domestic session as well.

Question 5

Firms must be r eegistered with FINRA as either :

Answer 5

European Only or International Service market

makers

Question 6

At the time of registration, firms must select, on a security-by-security basis, one of the following periods to define their market making commitment:

Answer 6

3: 30 am to 9:00 am
5: 30 am to 9:00 am
7: 30 am to 9:00 am

Question 7

To participate in Nasdaq International, firms must be members or approved affiliates. An approved affiliate

is a broker-dealer that is:

Answer 7

■ not a FINRA member;

■ authorized to conduct business in the UK in accordance with the Financial Services Act of 1986; and

■ controlled by, controls, or is under common control with a member.

Question 8

Approved affiliates are limited to

Answer 8

European-only registration.

Question 9

Clearance and settlement of European session trades must be effected through a registered clearing agency that uses a

Answer 9

continuous net settlement system (CNS).

Question 10

Last sale reports in the European session must be made to FINRA within

Answer 10

three minutes of execution.

Question 11

Like their domestic counterparts, European session market makers make volume reports to FINRA that are:

Answer 11

Like their domestic counterparts, European session market makers make daily and monthly volume reports to FINRA.

Question 12

If a market maker withdraws its quotes from the European session, can it continue to act as a market maker in thedomestic session if it is registered as an International Service market maker ?

Answer 12

YES