In 2015, Nasdaq introduced Prism, a new price improvement mechanism on BX Options. Prism will allow market participants to submit a buy and sell order in one message to initiate an auction.
Nasdaq BX Options Overview
Nasdaq BX OptionsSM (BX Options) market brings innovation to the industry by providing a destination geared towards retail order flow. As with The Nasdaq Options MarketSM (NOM) and Nasdaq PHLXSM (PHLX®) market makers are the principal liquidity providers supporting this market.
Features and Functionality
The BX Options trading platform offers low latency with state-of-the-art technology. BX Options is structured to reward Customers seeking immediate execution and liquidity. In addition, BX Options utilizes many of the same protocols offered on NOM and PHLX making the trading venue readily accessible to participants.
Prism, a new price improvement mechanism on BX Options, will allow market participants to submit a buy and sell order in one message to initiate an auction.
Nasdaq aims to improve options market structure and encourage additional liquidity in the options marketplace. With Prism, clients will have:
- Greater Control: Prism provides participants the opportunity to start an auction with a buy and sell order, providing additional control over order fulfillment.
- Price Improvement Opportunities: Prism incentivizes more competitive quotes from market makers, providing greater opportunity to receive price improvement.
- Access to Additional Liquidity: Prism encourages market makers to post at the quote, rewarding participants for providing a deeper pool of liquidity.
- Hybrid Allocation Model: Products on BX Options are traded with customer priority utilizing either a price/time priority or pro-rata allocation algorithm.
- Bulk Quoting: Market makers may provide liquidity using SQF, which allows market makers to supply up to 200 quotes in one message and is the same bulk quoting API provided on PHLX and NOM.
- Rapid Fire Risk Protection: The BX Options system monitors executions for each market maker and removes a given market maker's quotes/orders if firm-set thresholds are met.
- Varied Routing Strategies: All market participants may take advantage of BX's routing capabilities to meet customer demand, including the ability to check the BX Options book for price improving orders before routing to another exchange.
- Clearing Trade Interface: BX Options provides the same risk management feed (CTI) that is available on NOM and PHLX.
- High-Speed Opening Auction: Collects all pre-market orders and matches all eligible interest at the price at which any imbalance is minimized and matched contracts are maximized.
Nasdaq Co-Location Services offers subscribers a unique opportunity to place their own trading systems within Nasdaq data centers. Through Nasdaq’s primary data center, firms can access all eight of Nasdaq's U.S. Markets. Nasdaq also offers customers the ability to connect to our markets from key financial data centers outside our Carteret facility through our Point of Presence Service.
BX Options offers the same SQF, FIX, and CTI interfaces currently offered on NOM. Firms need to order separate BX Options ports.
- Specialized Quote Interface (SQF) - Market makers provide liquidity using SQF, which allows market makers to supply up to 200 quotes in one message.
- FIX interface - Financial Information eXchange (FIX) is a vendor-neutral standard message protocol used for submitting orders to the BX Options market.
- CTI - The Options Clearing Trade Interface is a risk management product that disseminates clearing trades, trade corrections, trade cancels and optional administrative messages.
Click here to request a BX Options SQF, FIX, or CTI Port.
BX Options market data is identical to NOM market data feeds. Direct data feeds include:
- BX Options Top of Market (BX Top) – Features data elements including, best bid and offer quotations, last sale data, administrative and market event messages. BX Top is the same as NOM BONO.
- BX Options Depth of Market (BX Depth) – Offers order and quote level data, trade messages, net order imbalance data and administrative messages. BX Depth is the same as NOM ITTO.
- BX Options Glimpse – A complement to BX Depth, this is a point to point data feed connection that provides direct data feed customers with the current state of the BX Options book.
To subscribe to any of our market data products, please contact your Nasdaq Global Data Products Account Manager at +1 301 978 5307 or visit the Global Data Products Administration page to complete the appropriate agreements and forms.
Fees and rebates commenced July 2, 2012. For more information refer to the BX Options Price List.