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When I search on internet I find two explanation.

  1. UTP site - The UTP Plan (Plan) governs the collection, consolidation and dissemination of Quotation and Transaction Information for Nasdaq-listed Securities Traded on Exchanges on an Unlisted Trading Privilege (UTP) Basis.
  2. Investopedia - Unlisted trading privileges (UTP) refer to the processes around the trading of a security that is not required to meet certain minimum requirements to be traded on an exchange.

So in one definition it says UTP provides consolidated data across exchanges for Nasdaq listed securities. In other definition it says it is meant for securities those do not meet certain minimum requirements to be traded on an exchange.

These two are completely contradicting explanation. Could some one please explain?

base64
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KnowledgeSeeeker
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1 Answers1

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UTP Tape C (the NBBO quote) and UTP (the listing privilege) are two different things.

For example, a stock with primary listing at NYSE has the UTP (the privilege) to list at NASDAQ at the same time, but it doesn't mean that the NBBO quote of that stock is published in UTP Tape C.

The bottom line is that UTC Tape C provides the NBBO quotes for all NASDAQ primary listed stocks and stocks that are not covered by "major exchange" (i.e. not covered by CTA Tape A and CTA Tape B).

For the explanation of the "listing privilege" itself, please refer to Duplicate Question: Can US stocks list on one stock exchange but trade on other US stock exchanges?

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