Occurs when an instantaneous auction is not possible.
Concludes upon receipt of the first
acceptable response.
Maximum auction time: 15 or 30 seconds.
For market orders only.
Step 1 A broker/dealer forwards a market order to The Primex Auction. The system receives the order and, finding no resident interest, broadcasts it to the crowd.
The maximum broadcast period is 15 seconds.
Step 2 Five seconds into the auction, a participant bids for all 1,000 shares at a relative price of +.02.
The system accepts the response, and the auction immediately concludes.
Step 3 Another participant bids 1,000 shares at +.03, but it is too late for this auction.
Step 4 The order interacts with the response at +.02. The execution price is 19.92, or 2 cents better than the Best Bid at the time.
The auction takes five seconds to complete. The trade is forwarded to Nasdaq.
