Character of Quotations on the Alternative Display Facility

What this video covers

• The Two-Sided Obligation requiring a registered reporting ADF market maker to be willing to buy and sell for its own account continuously during regular market hours, with at least one normal unit of trading displayed
• Why the obligation attaches security by security, and why excused withdrawal under a separate rule is the sanctioned way to step away from the duty
• How a market maker replenishes interest after an execution, either by entering new interest or identifying existing interest already resting on the ADF
• Why pricing obligations pause during a halt, suspension, or pause, and restart only after the first regular-way transaction in the primary listing market, not merely when a clock expires or trading resumes
• The designated percentage pricing bands: 8% and 9.5% for designated stocks, 28% and 29.5% for other National Market System (NMS) stocks priced at $1 or more, and 30% and 31.5% for NMS stocks priced below $1
• The quotation increment rules of $0.01 for securities priced at $1 or more and $0.001 below $1, along with why non-conforming quotations are rejected and how qualifying odd lots are disseminated to securities information processors (SIPs)
• The firm quote exception for an oversized incoming order, including when a partial fill and an inferior revised quotation do not create a violation