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Friday, June 19, 2020

Options Regulatory Alert #2020 - 23
PHLX, ISE and GEMX - Bid/Ask Differentials for NDX Option Class through September 18, 2020

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  • Regulatory

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Effective June 22, 2020, the below market maker quote width requirements for options overlying NDX on Nasdaq PHLX (PHLX), Nasdaq ISE (ISE) and Nasdaq GEMX (GEMX) will be effective through September 19, 2020. The exchanges may, in their discretion, amend the bid/ask differentials by providing notice to members.

Please note the MKL and BKNG are removed from this quarterly bid/ask differentials relief and NDX intra-day bid/ask differential relief has been changed.

The PHLX, ISE, and GEMX bid/ask differentials for NDX option class for electronic opening Valid Width Quotes and PHLX open outcry quotes are as follows:

  • If the bid is under $2, the bid/ask spread may be up to $1.50 wide.
  • If the bid is from $2 to $4.90, the bid/ask spread may be up to $2.00 wide.
  • If the bid is from $5 to $9.90, the bid/ask spread may be up to $3 wide.
  • If the bid is from $10 to $19.90, the bid/ask spread may be up to $6 wide.
  • If the bid is from $20 to $39.90, the bid/ask spread may be up to $12 wide.
  • If the bid is from $40 to $79.90, the bid/ask spread may be up to $24 wide.
  • If the bid is from $80 to $199.90, the bid/ask spread may be up to $36 wide.
  • If the bid is from $200 or greater, the bid/ask spread may be up to $44 wide.

The PHLX*, ISE* and GEMX* bid/ask differentials for NDX option class electronic intra-day quotes shall be as follows:

  • If the bid is under $200, the bid/ask spread may be up to $20 wide.
  • If the bid is from $200 to $399.00 the bid/ask spread may be up to $22 wide.
  • If the bid is from $400 or greater, the bid/ask spread may be up to $50 wide.

Please note that a PHLX index option series with an expiration of 9 months or greater has no bid/ask differentials requirements. For ISE and GEMX index option series with an expiration of 12 months or greater has no bid/ask differentials requirements.

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