On April 25, 2022 the Nasdaq Stock Market will be implementing changes to its closing cross process when a Limit Up-Limit Down (LULD) Pause for a symbol is in effect or triggered after 3:50pm.

Nasdaq will be introducing thresholds for establishing the Closing price for securities going through a LULD Close. A threshold price range will be calculated within which the LULD Close execution must occur.

The threshold will be the greater of 10% or $1.00 (or $0.50 for securities with a reference price equal to or less than $1.00). The threshold price range is calculated by taking, 10% of the last updated upper/lower LULD Auction Collar price (reference price) and adding/subtracting the calculated value to the upper/lower LULD Auction Collar.

The LULD closing cross execution will occur at 4:00pm EST at a price within the calculated threshold bands and will not extend past 4:00pm. Orders not executed in the cross will be cancelled back to firms, the same as today’s regular closing cross thresholds.

The Net Order Imbalance Information “NOII” for a LULD Close will be updated as follows:

• The reference price and near price will display a price at which the cross is indicated to occur bounded by the LULD threshold prices
• The Far price will display price at which the cross would occur unbounded by the LULD threshold prices
• Imbalance information will be disseminated based on the indicated cross price (reference and near price)
• The LULD Closing Cross threshold price range will be disseminated on the UTP SIP, TotalView ITCH and TotalView Aggregated via the existing LULD Auction Collar message.

Testing is currently available in the Nasdaq Testing Facility (NTF). The UAT production testing opportunity will be on April 9th.