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The Buzz About Pre-Opening Trading

Traders Magazine, April 2005

Peter Chapman

The volume is small potatoes compared to the hundreds of millions of shares Nasdaq typically processes in the first hour of the trading day. And it's certainly small compared to the some one and half billion shares Nasdaq trades on some days. But Nasdaq is optimistic about its latest technological marvel: the opening cross. The opening cross is handling about seven million shares per day. However, Nasdaq execs say the cross, which was introduced late last year, will soon capture most early morning retail flow. "Over time all those [retail] orders will congregate there," says Chris Conncannon, Nasdaq's head of transaction services. "The cross is so efficient and centralizes order flow at the most important time of the day."

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