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    Nasdaq Market Regulation

    MarketWatch: Equities & Options

    Efficient and independent surveillance of issuers, member firms and trading is critical to safeguarding the integrity of Nasdaq markets.

    Nasdaq’s surveillance activities are carried out by the MarketWatch Team, which operates a robust surveillance program to maintain an orderly marketplace and level playing field for investors, market participants and listed companies. MarketWatch implements fair and independent decisions within the scope of its authority and without influence from Nasdaq exchanges, business lines, or other Nasdaq offices.

    Compliance Monitoring

    MarketWatch monitors compliance with Securities and Exchange Commission (SEC) and Nasdaq Exchange rules and policies through real-time and post-trade electronic surveillance patterns that cover Nasdaq’s nine U.S. securities exchanges operated through its six SEC registered self-regulatory organizations.

    Floor-Based Trading

    MarketWatch staff also work on the NASDAQ PHLX options trading floor, providing similar coverage for floor-based trading. Surveillance patterns detect—and the MarketWatch team analyzes—anomalous price and volume data, as well as potential regulatory and policy infractions by market participants in equities and options transactions.

    Unusual Market Activity

    When unusual market activity is suspected of being potentially in violation of Exchange rules, MarketWatch refers the activity to Nasdaq’s internal Investigations and Enforcement team (and as applicable to FINRA's regulatory groups) for further review and potential disciplinary action. Information received by MarketWatch is confidential and used strictly for regulatory purposes.

    Time-Sensitive Matters

    MarketWatch communicates with issuers on time-sensitive matters related to review of material news disclosures, trading halt evaluations and unusual trading activity. MarketWatch also oversees the complete and timely disclosure of material information by Nasdaq-listed companies. 

    Market Regulation FAQs

    For more information, consult our Listing Center’s Reference Library, which houses more than 75 Market Regulation FAQs.

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