Under current rules, which were adopted prior to Nasdaq taking a controlling interest in the market, an application for admission to trading on Nasdaq Europe is made by the Market Maker seeking such an admission. In accordance with the current Nasdaq Europe Rule Book, initial and continued admission are dependent upon the commitment from at least one registered Market Maker to provide two-sided quotations in that security.
The new rules, which require a minimum of two Market Makers, will create further benefits for market participants and investors and are intended to stimulate competition between Market Makers on the Traded Segment and to promote increased liquidity in these stocks. The two Market Maker rule already exists on the Listed segment of the market.
In order to ensure the maintenance of an orderly and liquid market in the transition period, Nasdaq Europe will halt trading in securities where there is currently only one Market Maker. The trade halt will be imposed at the close of the market on Friday 9 November and will be lifted on a security-by-security basis when at least two Market Makers have registered in the given financial instrument. Trading will resume in the halted securities as additional Market Makers enter the market.
Michael Sanderson, Chief Executive Officer, Nasdaq Europe, commented, "The Traded Segment is designed to promote Nasdaq Europe as a highly competitive trading platform for trading in US securities during European market hours and for securities listed on other designated markets. By trading such securities on Nasdaq Europe, market participants benefit from access to a low cost, and advanced electronic trading system linked into a unique pan European settlement solution. By requiring two active Market Makers in each security, our aim is to provide market conditions which will enhance liquidity for the traded securities, benefiting market participants and investors."
