Direct Edge would like to remind its Members how the opening execution price is determined on the EDGA Exchange and the EDGX Exchange for initial public offerings on NASDAQ. The opening execution price will be the mid-point of the first National Best Bid and Offer that is disseminated following the NASDAQ opening print. Orders not matched in the Direct Edge Opening process, either because of their limit price or the absence of a contra side order, will be handled based on each order’s instructions.
It is anticipated that the initial public offering of Facebook, Inc. (NASDAQ: FB) will occur on Friday, May 18, 2012. EDGA Exchange and EDGX Exchange will accept orders for FB beginning at 6:00 a.m. Eastern Time (ET). Subject to the process described above, Direct Edge will begin trading FB after the NASDAQ opening price is disseminated on the tape.
Members that wish to be executed at the NASDAQ opening print are advised to route their orders to NASDAQ.
In addition, please note that orders in FB sent to Direct Edge prior to the opening of trading in FB will not be routed to NASDAQ. This applies to all routing strategies, including the ROOC order type, which by its terms does not participate in IPO auctions.
FTSE Mondo Visione Exchanges Index:
Direct Edge Trading Notice #12-20: Reminder About IPO Process On EDGA And EDGX Exchanges
Date 17/05/2012