All quotes published over the NASDAQ workstation are firm quotes. A dealer who fails to honor their quotes has committed a violation known as backing away. Dealers who provide quotes over the phone, which are clearly indicated as being subject or nominal, cannot be held to trade at those prices. NASDAQ qualifiers are:

  • “It looks like”
  • “It’s around”
  • “Subject”
  • “Nominal”
  • “Work it out”
  • “Last I saw”

A response of “it is’ would indicate a firm quote. A firm quote is always good for at least one round lot or 100 shares.

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Payments For Market Making

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