What is Last-Sale Reporting?
Last-sale reporting refers to the submission of trade details in the Nasdaq market.
How Does Last-Sale Reporting Work?
When a broker executes an order for a stock traded on the Nasdaq exchange, he or she must report it to Nasdaq no more than 90 seconds following its completion. The report must specify the stock as well as the share price and the number of shares.
For example, if a broker places an order on a client's behalf for 20 shares of stock ABC at a market price of $50 per share, he or she must transmit these details to Nasdaq within 90 seconds of placing the sale.
Why Does Last-Sale Reporting Matter?
Since Nasdaq exists as a network of brokers linked by computers rather than as a physical location (for example, the New York Stock Exchange), last-sale reporting ensures that trading is compliant with Securities and Exchange Commission (SEC) regulations.