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Product LoginWednesday, January 7, 2009
Options Trader Alert #2009 - 2
The NASDAQ Options Market Announces Pricing Change Effective Monday, January 12, 2009
Markets Impacted:
- The NASDAQ Options Market
Contact Information:
- NASDAQ Market Sales at +1 800 846 0477
What you need to know:
- Effective Monday, January 12, 2009, new pricing will allow orders with an account type of "Customer" to remove liquidity for free in QQQQ, DIA, SPY and IWM options.
- Rebates are unaffected by this pricing change.
What is changing?
Effective Monday, January 12, 2009, The NASDAQ Options MarketSM plans to introduce new transactions pricing that will allow orders with an account type of "Customer" to remove liquidity for free in QQQQ, DIA, SPY and IWM options.
Will the customer portion of broker dealer facilitation trades be charged a liquidity accessing fee?
Yes. When a trade occurs in options on these four symbols and the trade involves a customer removing liquidity that has been provided by the same broker dealer, the customer side of the transaction will be charged the standard rate for removing liquidity.
Example: If participant A enters an order and then participant A accesses that liquidity with an order with an account type of “Customer”, the “Customer” order is still charged the liquidity charge of $0.45 per executed contract.
Will liquidity rebates be affected?
Rebates are unaffected by this pricing change. Orders with an account type of “Customer” will still receive a rebate for providing liquidity in options on these symbols.
The NASDAQ Options Market rebate for added liquidity is among the highest in the industry with a rebate of $0.35 per executed contract for Price Improving Orders and a rebate of $0.30 per executed contracts for other orders.
What percentage of volume in DIA, IWM, and SPY is price improved?
Based on December volume, the rate of price improvement for eligible* contract volume is:
DIA: 49.6% IWM: 8.8% SPY: 34.2%
*Because QQQQ options are quoted in $0.01 increments at all prices, no QQQQ options are eligible for price improvement.
Where can I get more information?
- Refer to The NASDAQ Options Market pricing page on the NASDAQ Trader® website.
- Contact NASDAQ Market Sales at +1 800 846 0477
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