Series 24 -- Trading and Market Making Flashcards
NYSE REG – before orders are crossed, must be offered to crowd at ____ above the current bid.
1 cent
NYSE Rule 127 defines a block of stock as at least ___ shares or $____ or more
10,000 shares, $200,000.00
NYSE Market on close (MOC) orders, unless there is an imbalance, cannot be entered after ___:_____
3:45PM
Delisting requires approval of Board of Directors and form ___ filing with ___.
Form 25, SEC
A security is considered delisted ___ days after filing.
10 Days
OTC EQUITY – an OTC equity security is generally considered to be any equity security that is not ____ stock traded on a ________
NMS, National Securities Exchange
NASDAQ listings are _______ and ________equivalent securities.
equity and equity equivalent securities
NASDAQ min bid price of ____ per share Global Select Market listing.
$4
NASDAQ listing ____ round lot shareholders.
400
NASDAQ MM Registration - Application ___ upon approval
effective
NASDAQ MM Registration – Must enter quotes within ___ business days
5
NASDAQ MM Registration – Excused withdrawl for cause, requires ___ Approval
NASDAQ
NASDAQ MM Registration – Voluntary termination for NASDAQ and ADF market makers requires ____ day wait before re-registration.
20 business day
VWAP – considers ____ of shares traded at each ___ level to determine average
number of shares, price level
VWAP computed by ___ divided by the number of shares traded
total dollar value traded
SHORT INTEREST REPORTING – reported ___ monthly for short positions in both ___ and ___ accounts
twice, customer and proprietary
SHORT INTEREST REPORTING reported on the ___ and the ___ day of the month
15th and last business day
SHORT INTEREST REPORTING reported on trades that have ____ as of the reporting dates.
settled
OATS – time sequence trail of orders from ___ to ___
entry to execution
OATS applies to ___ and ___ equity securities
NASDAQ and OTC
OATS Daily reports on an ___
order by order basis
Trading Halts – NASDAQ indicators are T1 for _____, T2 for _____ and T3 for ____ window when quotes can be entered and trading can begin.
T1 = news pending
T2 = News Released
T3 5 minute window
LULD mechanism is intended to prevent trades in _____ securities from occurring outside of specified _____.
NMS, Price bands
ECN: Registered ___ that provides trading platform for extended hours trading.
ATS
Markup Policy (5% policy) prospectus offerings
Prospectus offerings exempt
Markup Policy (5% policy) – Calculated from inside market price for ____ competitive markets.
active
Markup Policy (5% policy) – Applies to corporate and _____ debt
US Government
Regulation NMS rule 611 prohibits trade throughs that occur when a firm executes a customer order at a price when a _____ is available in another market.
better price
Regulation NMS rule 612 deals with minimum increments with regard to pricing. For stocks priced at ___ per share or greater, the min increment is ___.
$1.00/ one cent
Regulation NMS rule 612 ___ pricing is permitted for stocks trading below $1.00
sub-penny
Regulation NMS rule 605 requires market centers that trade listed and ______ securities to prepare _____ reports on execution quality.
NASDAQ, Monthly
Regulation NMS rule 606 requires firms to disclose, in ____ reports, their routing methods that identify the market centers to which they route a significant percent of their _____ orders and any _____ for orderflow arrangements that exist.
quarterly, non-directed orders, payment
LIMIT ORDER PROTECTION RULES – Manning Rule says firms cannot ______ of customer limit orders.
trade ahead.
LIMIT ORDER PROTECTION RULES – If a market maker receives, as _____, a better price than unexecuted customer limit order, _____ must be passed along to the customer
principal, price improvement
LIMIT ORDER PROTECTION RULES SEC Rule 604 – the display rule requires a ______ to display a customer order priced ______ than its current quote within _____ seconds of receipt.
market maker, better, 30 seconds
OTC Market Regulation – Cannot trade ahead of block orders at that is _____.
front running
OTC Market Regulation – Cannot adjust inventory in advance of non-public knowledge of issuance of research report: applies to ________
any security – no trading ahead of research reports.
OTC Market Regulation – Interpositioning prohibited unless it results in better _____ for the customer
execution
REGULATION SHO – mandates a short locate requirement prior to ______ of any security.
short sale
REGULATION SHO – requires close out of fails to deliver in threshold securities after ___ consecutive settlement days (FINRA Rule ___)
13, 4320
