The following FAQs have been prepared by Direct Edge with respect to our EDGA Exchange and EDGX Exchange trading platforms.
1) When does the pilot program begin and what is the duration?
It will begin June 7, 2010 and last through December 10, 2010.
2) How will the individual stock circuit breaker halt work?
Beginning at 9:45 am, a trading halt will go into effect for an individual stock that experiences a price swing of 10% or more during a rolling five-minute time period. The primary listing market is responsible for communicating the halt to the SIPs, at which point all markets are required to cease trading for five minutes. The halt will be lifted after the stock has been re-opened by the primary listing market. If the stock has failed to open after a ten-minute period, other markets are eligible to resume trading. (See question #7 for details on resumption of trading on Direct Edge.) The ability to invoke individual stock circuit breakers expires daily at 3:35 pm.
3) What stocks are included in the pilot program?
The pilot program applies to S&P 500 stocks only; however, as the SEC evaluates the success of the program, the list may expand.
4) How will the halt be reflected on the SIPs?
Once a halt is triggered, Trading Halt Reason Code and Quote Condition Code “M” will be disseminated by CTS/CQS to all data feed recipients. The UTP SIP will disseminate a Regulatory Halt “H” with a reason code of T5 to all data feed recipients.
5) What will happen to my order once a trading halt is invoked?
Post Only orders will be canceled back when there is a halt and will not be accepted until trading resumes. All other Day and GTT orders will be retained during the halt and may be canceled or replaced by customers. New Day and GTT orders, except Post Only orders, will be accepted during the halt.
6) How does Direct Edge know when the halt period is over?
The Trading Resumption message placed on the SIP signals that the primary listing market has resumed trading.
7) How do I know when Direct Edge resumes trading?
Following the first post-halt print to the Consolidated Tape by the primary listing market, Direct Edge will automatically implement its mid-point opening method. If the primary listing market fails to open after ten minutes, the re-opening will occur on a case by case basis at Direct Edge’s discretion.