Market Order NBBO Width Protection for Simple Orders

Market Orders are rejected if the NBBO width is greater than 100% of the midpoint (with a minimum value of $5.00 and maximum value of $10.00).

Example

• NBBO = $1.00 x $4.00
• Midpoint = $2.50 x 100% = $2.50 (min of 5.00 is used instead)
• NBBO Width = $4.00 - $1.00 = $3.00

Even though the width is greater than 100% of the midpoint, Market Orders entered are accepted since the $5.00 minimum applies in this example.