Welcome to NASDAQtrader.com for Options and Futures

Tuesday, June 15, 2010

Options Regulatory Alert #2010 - 9
PHLX and NOM Announce New Halt Procedures

Markets Impacted:

Contact Information:

What you need to know:

  • In response to the events of May 6, 2010, U.S. equity markets filed with the Securities and Exchange Commission (SEC) to establish market-wide trading pause standards for all securities included in the Standard & Poor’s 500 Index (S&P 500) effective Monday, June 14, 2010.
  • The U.S. options markets have also filed with the SEC to honor trading pauses in the primary listing market for the underlying security by halting trading in options overlying such underlying security.
  • In conjunction with SEC approval of the market-wide trading pause standards, NASDAQ OMX PHLXSM (PHLX®) has amended PHLX Rule 1047 and The NASDAQ Options MarketSM (NOM) has amended Chapter V, Section 3 of the NOM rules to impose trading halts in options when trading in the underlying security has been paused by the primary listing market pursuant to the single stock circuit breaker pilot that currently applies to stocks included in the S&P 500.

What is changing?

Effective Monday, June 14, 2010, PHLX and NOM will halt trading in option contracts when trading in the underlying security has been paused by the primary listing market pursuant to the single stock circuit breaker pilot recently approved by the SEC.

What is the single stock circuit breaker pilot?

In response to the events of May 6, 2010, U.S. equity markets filed to establish market-wide trading pause standards for individual stocks included in the S&P 500 that experience a price change of 10% or more (the Single Stock Trading Pause) in any five-minute period.

Will PHLX halt option trading in response to single-market pauses?

Currently, PHLX and NOM will only halt options trading in response to a pause initiated by a primary listing market pursuant to the single stock circuit breaker pilot covering S&P 500 stocks. PHLX and NOM will not halt trading in response to single-market pauses such as the NASDAQ Volatility Guard or NYSE Liquidity Replenishment Point.

When will options trading re-open if an underlying security is halted by the primary listing market?

PHLX and NOM will resume trading in an affected option when a trade resumption message (Trading Action = T) is received over the Unlisted Trading Privileges (UTP) data feeds.

Where can I find more information?



Email Alert Subscriptions:
Nasdaq offers customers the ability to self select news delivery across various Nasdaq markets. Create and maintain a profile for updating alert preferences and contact information. Visit the enrollment form on the Nasdaq Trader website and sign up today! Please note that if you choose to unsubscribe from an email list, you may no longer receive potentially critical emails from the NASDAQ Stock Market regarding Nasdaq's trading and data products, regulatory issues or marketplace initiatives.

Please follow Nasdaq on Facebook RSS and Twitter.

Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 90 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to approximately 3,900 total listings with a market value of approximately $13 trillion. To learn more, visit: business.nasdaq.com.