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Alternative Display Facility

The Alternative Display Facility (ADF) is a trading venue operated by the Financial Industry Regulatory Authority (FINRA) that allows market participants to post quotations and execute trades for Nasdaq-listed stocks. The ADF provides an alternative to Nasdaq’s proprietary trading platforms, offering transparency and competition in the marketplace. It is designed to support the display of quotes and the reporting of trades by market participants who do not want to use Nasdaq's own systems.

Example

A broker-dealer might choose to post quotes on the ADF instead of Nasdaq to take advantage of different fees or trading conditions.

Key points

• A trading venue for displaying quotations and executing trades in Nasdaq-listed stocks.

• Operated by FINRA as an alternative to Nasdaq’s proprietary platforms.

• Increases market transparency and competition.

Quick Answers to Curious Questions

The ADF is a FINRA-operated trading venue that allows for the display of quotations and execution of trades in Nasdaq-listed stocks, offering an alternative to Nasdaq’s platforms.

A broker might use the ADF for different fees, trading conditions, or to avoid using Nasdaq’s proprietary systems.

By providing an alternative venue for trade reporting and quote display, the ADF increases competition among trading platforms and enhances market transparency.