2025-12301Notice

Nasdaq Updates Closing Price Rules for Small ETP Trades

Published Date: 7/2/2025

Notice

Summary

Nasdaq is changing how it sets the official closing price for certain exchange-traded products (ETPs) when the last trade is super small (less than one full share). This update affects traders and investors in Nasdaq-listed ETPs and aims to make closing prices fairer and more accurate. The new rule kicks in right away with no extra costs involved.

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Odd‑Lot ETPs Use Time‑Weighted Midpoint

If a Nasdaq-listed exchange-traded product (ETP) has a Closing Cross trade of less than one round lot (an odd lot), Nasdaq will use the time-weighted average midpoint (T-WAM) of the national best bid and offer (NBBO) to determine the Nasdaq Official Closing Price (NOCP). This expands the existing T-WAM method so ETPs that close with an odd-lot trade will have a NOCP intended to be more reflective of the ETP's value.

Rule Made Operative Immediately

The SEC waived the normal 30-day operative delay and designated Nasdaq's proposed rule change operative upon filing (filed June 24, 2025). Nasdaq had requested implementation by July 12, 2025, and the Commission may temporarily suspend the change within 60 days if necessary for investor protection.

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Key Dates

Effective Date
Published Date
6/24/2025
7/2/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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