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Product LoginThursday, February 25, 2010
Options Trader Alert #2010 - 15
NASDAQ OMX PHLX Updates Fees and Definitions Effective Monday, March 1, 2010
Markets Impacted:
- NASDAQ OMX PHLX
Contact Information:
- Transaction Services U.S. Market Sales at +1 800 846 0477
What you need to know:
- Effective for trades settling on or after March 1, 2010 (trade date February 26, 2010), NASDAQ OMX PHLX will modify the fees and rebates for adding and removing liquidity (“make/take program”), modify transaction fees and reduce certain monthly caps, pending filing with the SEC.
- PHLX will add 23 additional symbols to the current make/take pricing program and revise Firm fees.
- Transaction fees and surcharges will be modified.
- The existing fee caps for equity options transactions for Specialists, Registered Option Traders and Firms will be reduced.
- The Real-Time Risk Management fee will be modified.
What is changing?
Effective for trades settling on or after March 1, 2010 (trade date February 26, 2010), NASDAQ OMX PHLXSM (PHLX®) will modify the fees and rebates for adding and removing liquidity (“make/take program”), modify transaction fees and reduce certain monthly caps, pending filing with the Securities and Exchange Commission (SEC).
How will the PHLX make/take program be expanded?
PHLX will add 23 additional symbols to the make/take pricing program and modify Firm fees.
Make/take pricing will be as follows:
| Customer | Directed Participant | Specialist, ROT, SQT and RSQT |
Firm | Broker-Dealer | |
|---|---|---|---|---|---|
| Rebate for Adding Liquidity | $0.20 | $0.25 | $0.23 | $0.00 | $0.00 |
| Fee for Adding Liquidity | $0.00 | $0.00 | $0.00 | $0.45 | $0.45 |
| Fee for Removing Liquidity | $0.25 | $0.30 | $0.32 | $0.45 | $0.45 |
Single contra-side orders that are executed against the individual components of Complex Orders are charged according to make/take fees. Effective for trades settling on or after March 1st, the individual components of such a Complex Order will be charged according to the above fees.
Refer to the PHLX Fee Schedule for current make/take pricing information.
How are equity option transaction fees changing?
The transaction fee for Registered Option Traders (ROTs) and Specialists will be $0.22 per contract. The options surcharge for RUT, RMN, MNX and NDX for ROTs, Specialists, Firms and Broker-Dealers will be $0.15 per contract.
How are PHLX World Currency Option transaction fees changing?
The transaction fee for PHLX World Currency Options® (WCOs) for ROTs, Specialists and Firms will be $0.30 per contract.
How are monthly transaction fee caps changing?
The existing monthly fee cap for equity option transactions for Specialists and ROTs will be reduced from $750,000 to $650,000 per month.
The existing monthly fee cap for equity option transactions for Firms will be reduced from $85,000 to $75,000 per month.
How is the Real-Time Risk Management fee changing?
The Real-Time Risk Management fee will be $0.003 per contract for firms or members that receive information on a real-time basis.
Where can I find additional information?
- Refer to the PHLX Fee Schedule on the NASDAQ OMX Trader® website for complete pricing information.
- Contact Transaction Services U.S. Market Sales at +1 800 846 0477.
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