The trading rules will be implemented as part of the new hybrid trading platform that will be based on the Market Maker system. Following is a summary of the key trading functions, basic rules and market structure.
Market structure combines an order-driven auction function with market making.
Continuous execution opportunities are warranted as well as the improved liquidity, through the constant updates of bid and ask quotes by Market Makers. This is essentially the same functionality as the current auction book. In principle, the Nasdaq Japan Market will require a minimum of three Market Makers for each stock. For the time being, only two will be required. Market makers have certain obligations including the continuous quote requirement, but are rewarded with transaction fee discounts and the ability to hold a proprietary order book.