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Monday, December 7, 2009

Options Trader Alert #2009 - 66
NASDAQ OMX PHLX Announces Updated Fee Schedule, Effective Monday, January 4, 2010

Markets Impacted:

  • NASDAQ OMX PHLX

Contact Information:

What you need to know:

  • NASDAQ OMX PHLX will introduce a new fee schedule for trades settling on or after Monday, January 4, 2010 (trade date December 31, 2009).
  • The new pricing schedule will affect the following fees:
    • Specialist, ROT, SQT and RSQT equity options transaction fees
    • Registered Representative/Member Exchange/Off-Floor Trader Registration fee
    • Permit and clerk fees
    • Order entry port and SQF fees
    • SQT and RSQT fees
    • Proprietary index options transaction fees
    • Equity options firm transaction fee and cap

What is changing?

NASDAQ OMX PHLXSM (PHLX®) will introduce a new fee schedule for trades settling on or after Monday, January 4, 2010 (trade date December 31, 2009).

For detailed descriptions of the changes, please refer to the January 2010 Fee Changes Reference Guide on the NASDAQ OMX Trader® website.

What will fees be for Specialist, ROT, SQT and RSQT Equity Option Transactions?

PHLX will charge Specialists, Registered Options Traders (ROTs), Streaming Quote Traders (SQTs) and Remote Streaming Quote Traders (RSQTs) $0.05 per contract when trading against an order directed to them for execution. A fee of $0.21 per contract will be assessed for all other trades. All transaction charges will be capped at $900,000 per month.

What is changing regarding the Registered Representative/Member Exchange/Off-Floor Trader Registration Fee?

PHLX will eliminate the Registered Representative/Member Exchange/Off-Floor Trader initial registration fee of $55.00, the transfer fee of $55.00 and the termination fee of $30.00 and will replace them with the Options Regulatory Fee (ORF). The ORF is a fee of $0.0035 per contract that will be assessed for an executed or cleared contract that clears in the customer range at The Options Clearing Corporation (OCC).

How will permit and clerk fees change?

Permit fees will be modified to $1,000 per permit regardless of member classification. The clerk registration fee will be $100 per clerk.

How will Order Entry and Specialized Quote Feed port fees change?

Order Entry port fees will be a flat fee of $500 per mnemonic, per month. Specialized Quote Feed (SQF) ports will be assessed $500 per month, per active SQF port.

How will Streaming Quote Trader and Remote Streaming Quote Trader fees change?

SQTs and RSQTs will no longer receive permit credits associated with SQT and RSQT fees.

What will fees be for proprietary index options transaction fees?

Specialist, ROTs, SQTs, RSQTs and Firms will be assessed a $0.30 per contract fee for proprietary index option transactions.

What is the fee and cap for equity options firm transactions?

The equity options firm transaction fee will be $0.25 per contract. The fee cap will be $85,000 per month.

Where can I find more information?


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