Nasdaq and NYSE Trading Rules

Read the Free Lesson → free · no signup wall

Chapters in this video

  1. 0:00 Nasdaq market maker registration and continuous quote obligations
  2. 2:06 NYSE absolute price priority and DMM conduct rules
  3. 3:12 Cross transactions and the NBBO protection rule
  4. 4:17 Block trades: the 10,000 share or $200,000 exception
  5. 5:46 Rapid-fire exam recap

What this video covers

  • Why a Nasdaq market maker must maintain continuous two-sided quotes, and the consequence of losing quotation privileges entirely (not just a fine or suspension)
  • How the Nasdaq Market Center Execution Services govern order matching, priority, and execution algorithms
  • Why NYSE price priority is absolute: best price always wins, with time priority serving only as a tiebreaker at identical prices
  • What cross transactions are, and why they must always execute at or between the NBBO to protect customers and the public market
  • The two exact thresholds that define a block trade: 10,000 shares or more, or $200,000 or more in market value
  • Why block trades are the major exception to NBBO rules, and how this prevents massive institutional orders from crushing the broader market
  • The core conduct obligations of designated market makers (DMMs) on the NYSE floor

Read the full lesson, free

This video's complete written lesson is free to read in the CertFuel app, no signup wall. When you're ready to drill the topic, the full Series 7 course adds adaptive practice questions and spaced-repetition flashcards.

Read the Free Lesson → free · no signup wall