Last Sale Reporting

What is the last-sale reporting

Last sale reporting is a requirement of the Nasdaq stock market that the dealers should provide information on the number and sales price of the shares on Nasdaq within 90 seconds of any transaction.

Breaking the last-sale reporting

Last-sale reporting has grown from the need to provide the computerized trading system of NASDAQ that do not violate the rules controlled by the US Commission on securities and stock exchanges. In order to improve the transparency and efficiency of markets, regulators require that market makers in real time reporting to ensure that state inventory. Since trades on the Nasdaq occur electronically over a network, and not on the exchange, market makers must take responsibility for the delivery of trading data directly to the exchange. In the 90-second interval for the trading statements required by the Nasdaq stock exchange regulatory obligations of the exchange in real-time reporting.

On the NYSE and on the Nasdaq

The launch of the Nasdaq in 2006 created the world’s largest exchange company. Although NASDAQ OMX technically has its headquarters in new York, she works on markets around the world. At the time of creation of the primary trading platforms relied on specialists to facilitate trade exchange through an auction-based system where buyers and sellers compete directly with each other and conclude agreements. The new York stock exchange (NYSE), for example, there are specific firms as market-makers for work in exchange hall, are reporting the bid and ask prices in a timely manner, setting prices and acting as a catalyst for transactions. Act specialists third-party intermediaries, matching buyers with sellers in order to maintain the flow of trade in the market.

In contrast, the Nasdaq uses more than 300 market participants, none of whom actually works at a fixed, physical exchange and which directly deals. Investment companies that act as market makers of the Nasdaq market also act as dealers in securities for the exchange network. These firms buy shares of stock, to accumulate inventory to be used as the basis for other users on the network, either for investors or other market participants. Dealers will also buy back shares from investors or other dealers, adding back the stock in its reserves.

In order to maintain transparency in the market and competitive pricing among market makers, any exchange should be the current sales information available to all market participants. While on the NYSE receives this information from the experts who facilitate trading on the stock exchange, the Nasdaq trades no third party to track the trade data. Thus, the Nasdaq requires dealers to provide trading data directly to the exchange.

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