The Nasdaq Stock Market Inc. announced that it implemented a new, automated IPO Cross on May 30.

The new IPO Cross is designed to provide executions utilizing a fair and transparent process to begin secondary trading of initial public offerings based on supply and demand. NASDAQ has received Securities and Exchange Commission approval to implement the new IPO Cross.

The exchange says the new feature benefits investors by: providing fair executions at a single price that is reflective of supply and demand in the market; maximizing transparency at IPO opens by disseminating timely information to all investors; and, by creating an efficient, open process in which all investors have the ability to enter orders and participate in price discovery.

Nasdaq will also introduce a new Halt Cross that will be used for re-opening halted securities later this month.

“Given our success with the Nasdaq Opening and Closing Cross auctions, we have extended this concept and have introduced a new IPO Cross that reflects the supply and demand in the market for IPOs and halt resumptions,” said Chris Concannon, executive vice president. “As the premier market for initial public offerings, Nasdaq is implementing this new electronic IPO to ensure transparency and fair executions that will create one single price for all IPOs.”