SEC OKs Rule To Boost Liquidity On Nasdaq Exchange

Law360, New York (February 18, 2009, 12:00 AM EST) -- The U.S. Securities and Exchange Commission has approved a proposal by the Nasdaq Stock Exchange Inc. to create an additional order type designed to enhance liquidity on the largest electronic stock market in the U.S.

Effective immediately, the amended rule proposed by the Nasdaq will increase the ability of market participants to control their provision, or taking, of market liquidity and thus better anticipate their trading costs, the SEC announced Tuesday.

The new rule adopts an additional order type known as the “post-only order,” which is...
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