Nasdaq Aims for a Smoother First Day for New ETFs

Nasdaq has applied to add Class ETF Shares to the product definition traded on the crypto exchange.
The change enables an optional halt on the launch day for better price discovery.
About 48 firms now have SEC approval for a dual-class ETF structure

With its rule change filing on April 7, Nasdaq wants to expand the definition of exchange-traded product (ETP) to also include the scope of “Class ETF Shares”; with this hybrid product type, both an investment fund and an ETF structure are offered together.

This amendment in Equity 1, Section 1(a)(15) allows issuers that offer such products to use the exchange’s optional First ETP Opening (Initial ETP Open) on their first trading day.

What Does the Rule Change Mean for ETF Issuers?
Class ETF Shares stand out as ETF shares issued by open-end funds that offer both exchange-traded shares and traditional mutual fund shares.

The U.S. Securities and Exchange Commission (SEC) approved Nasdaq’s general listing standards for these products under Rule 5703 in November 2025.

Meanwhile, the SEC also approved Nasdaq’s First ETP Opening application in May 2025. Under this method, ETP issuers can delay the opening time of a security from 04:00 in the Pre-Market Hours to the period until the regular market opening at (09:30).
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