Normal Business Hours and Locked or Crossed Quotations

What this video covers

• When an ADF trading center may open voluntarily, when it must be open, the earliest permitted closing time, and the evening-session cutoff
• Why 4:00 p.m. Eastern Time is the earliest permitted close, not a mandatory closing time, and when Financial Industry Regulatory Authority (FINRA) rules apply during extended hours
• How to distinguish a locking quotation from a crossing quotation using equal and through prices on the bid and offer sides
• Why the reference quotation must have been previously disseminated, and what makes a protected quotation under a national market system (NMS) plan
• How the reasonably avoid standard and pattern-or-practice language differ from an absolute ban on every inadvertent lock or cross
• Why manual quotations may not be displayed in the ADF, and how to repair a manual quotation in another FINRA facility by promptly withdrawing it or routing an ISO for the full displayed size
• The four exceptions to the locking and crossing prohibition, including the exam distinction between a simultaneous ISO for an exception and a prompt ISO for a repair