Day Tradexchange Inc. (SYNJ)

[Dragonwing]

Limit Order Display

FINRA Rule 6460 requires OTC Market Makers displaying a priced quotation in any OTC Equity Security in an inter-dealer quotation system to immediately publish a bid or offer that reflects:

» the price and the full size of each customer limit order held by the OTC Market Maker that is at a price that would improve the bid or offer of such OTC Market Maker in such security; and
» the full size of each customer limit order held by the OTC Market Maker that:
> is priced equal to the bid or offer of such OTC Market Maker for such security;
> is priced equal to the BBO of the inter-dealer quotation system in which the OTC Market Maker is quoting; and
> represents more than a de minimis change in relation to the size associated with the OTC Market Maker’s bid or offer.


Rule 6460 also includes parallel exceptions currently in place in Regulation NMS’s limit order display rule (Rule 604 of SEC Regulation NMS). Thus, the new rule excepts any customer limit order that is:

> executed upon receipt of the order;
> placed by a customer who expressly requests, either at the time that the order is placed or prior thereto pursuant to an individually negotiated agreement with respect to such customer’s orders, that the order not be displayed;
> an odd-lot order;
> a block size order, unless a customer placing such order requests that the order be displayed;
> delivered immediately upon receipt to a national securities exchange or an ECN that widely disseminates such order and that complies with enumerated requirements with respect to that order
> delivered immediately upon receipt to another OTC Market Maker that complies with the requirements of this rule with respect to that order; or
> an all-or-none order.