The Nasdaq Stock Market, Nasdaq BX, and Nasdaq PSX will be introducing enhanced Self Match Prevention (SMP) functionality.

The SMP enhancements provide updated matching logic, introduce two new matching levels, and introduce a new SMP strategy.

Currently, orders with different SMP levels may still have SMP activated as the incoming order dictates the matching level used. This functionality will be changed so that the level on both orders must match for SMP to be activated. The incoming order’s strategy will still dictate which strategy is used (Cancel Oldest, Cancel Newest, etc.).

A new SMP level called “Affiliate” will be introduced to allow firms to activate SMP across member MPIDs and any MPIDs that a firm uses through a sponsored access provider. Firms wishing to utilize this functionality will need to contact Trading Services and complete an Affiliate ID Request Form to create an Affiliate ID to link together MPIDs in this arrangement.

A new SMP level called “Match Any” will be introduced to allow firms to have SMP activated if any of the existing activation levels match (MPID, ORG ID, Affiliate ID).

A new SMP strategy called “Use Remover” will be introduced that will only invoke SMP as a liquidity adder and will defer to the incoming order’s strategy when activated. This strategy will never invoke SMP when it is applied to an incoming order.