Nasdaq filed for immediate effectiveness to adopt a modification in the process for initiating trading of a security that is the subject of an initial public offering on Nasdaq.  The exchange is making the 'minor modification'. Current Rule Process. Rule 4120(a)(7) provides that trading in an IPO security is halted until the security is released for trading.  Rule 4120(c)(7)(B) establishes the process for lifting the halt and commencing trading.  Under that rule, prior to terminating the halt, there is a 15-minute Display-Only Period during which market participants may enter quotes and orders into the Nasdaq Market Center. At the conclusion of the Display-Only Period, trading commences through the halt cross process provided for in Rule 4753.  However, if at the end of a Display-Only Period, Nasdaq detects an order imbalance in the security, the halt may be extended for up to 6 additional Display-Only Periods of 5 minutes each. Currently, quotes and orders in the IPO security may not be entered until the commencement of the Display-Only Period.  However, Nasdaq believes that the quality of its process for commencing IPO trading would be enhanced by allowing market participants to begin entering orders at 7 a.m., to be held and not displayed until the beginning of the Display-Only Period. Specifically, Nasdaq believes that this change will provide for a greater number of orders being entered prior to commencement of trading, resulting in a higher level of order interaction at the open. Amending Rule 4120(c)(7)(B). To effect this change, Nasdaq proposes amending Rule 4120(c)(7)(B) to provide that beginning at 7 a.m., market participants may enter Market Hours Day Orders (“MDAY Orders”) in a security that is the subject of an IPO on Nasdaq and designate such orders to be held until the beginning of the Display-Only Period.  Such orders will be held in an undisplayed state until the beginning of the Display-Only Period, at which time they will be entered into the system.  Market participants may cancel orders entered in this manner in the same way they would cancel any other order. For further details, go to:  [Nasdaq Rule Filing 12-38, 3/19/12].