Nasdaq OMX Group said today that it has won an approval from the US Securities and Exchange Commission to launch a new stock exchange on October 8th.
The new equities trading platform - known as Nasdaq OMX PSX - will focus on price-size priority model, which encourages participants to display more shares at a price level. More displayed volume encourages greater transparency in the public marketplace and increased depth at a price level for customers, the exchange company said.
"We are pleased to deliver new opportunities that meet the needs of our buy-side and sell-side trading customers as well as other market participants enabling them to add liquidity to a lit marketplace," Eric Noll, executive vice president of transaction services at Nasdaq OMX, said in a statement.
The allocation of shares is pro-rated based on a participant's size relative to the total size at that price level, the exchange said.
Reuters