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Reserve Size Requirement Reduced

Traders Magazine, October 2001

Gregory Bresiger

Beginning this month, Nasdaq has ended the requirement that market makers display at least 1,000 shares for their quotes using the market's reserve size feature. Under a rule change, market participants will now only be required to display 100 shares when using the feature. The change was designed, in part, to make the competition between market makers and ECNs fairer. ECNs are only required to display 100 shares. Many traders have been pushing for the change.

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