Reply To: Explain the determination of opening cross prices in NASDAQ.

[Allen Paul]

Buyers and sellers submit offers and counteroffers until the prices match to decide the pricing for the opening cross. The opening cross procedure aims to maximize execution by facilitating trading the most shares of a particular security at a single price. Nasdaq allows trade requests for several hours after the market closes and several hours before it opens, even though trades are only performed from 9:30 am to 4:00 pm. Market players can view the prices at which buyers are willing to buy, and sellers are willing to sell by accessing the information about these requests electronically. A 10% threshold is used to determine the beginning price while matching prices.