Customer Limit Order Display Requirements

What this video covers

• Which firms carry the display duty, including exchange specialists, authorized members performing substantially similar functions, and OTC market makers, and why an ordinary retail broker does not
• How a customer limit order that improves the firm's quote requires publication of both the new price and the full size
• How a tied order must match the firm's quote, match the national best bid or national best offer, and represent more than a de minimis change before its full size is displayed
• Why immediately means as soon as practicable, generally no later than 30 seconds under normal market conditions, and why the Securities and Exchange Commission (SEC) interpretation is not a safe harbor
• The seven display exceptions, including orders executed upon receipt, odd lots, customer non-display requests, block-size orders, all-or-none orders, and qualifying immediate routing
• The exam distinction between block-size orders hidden by default and ordinary limit orders displayed by default unless the customer requests non-display, plus the separate exemption for all-or-none orders
• How routing to a national securities exchange or association system differs from routing to an electronic communications network (ECN) or another OTC market maker, including ECN exclusions and the compliance condition