Monday, April 30, 2012
Options Trader Alert #2012 - 29
NASDAQ OMX PHLX Directed Order Handling
What you need to know:
How does PHLX handle Directed Orders?
When PHLX's disseminated price is the National Best Bid and Offer (NBBO) at the time of receipt of a Directed Order, and the Directed Specialist, SQT or RSQT is quoting at PHLX's disseminated price, the Directed Order is automatically executed and allocated in accordance with PHLX Rule 1014(g)(viii).
Beginning May 3, 2012, only when FIX tag 79 is unpopulated and the order size is five contracts or fewer, will all five contracts be allocated to the specialist when he/she is quoting at PHLX's disseminated NBBO. Rule 1014(g)(viii) will be applied even in the case where a Directed Order with a size of five contracts or less is directed to the specialist.
Where can I find more information?
- Refer to PHLX Rule 1014(g)(viii).
- Contact Transaction Services U.S. Market Sales at +1 800 846 0477.
About the NASDAQ OMX Group: The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with more than 3,600 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit www.nasdaqomx.com.