Thursday, May 31, 2012
Options Trader Alert #2012 - 36
BX Options Launch Reminder and Update
What you need to know:
What is changing?
As announced in OTA #31, NASDAQ OMX plans to launch a new options market, BX Options, on June 29, 2012, pending SEC approval. BX Options will offer an innovative approach through functionality and pricing to attract a rich participant mix. The new market will launch with a price/time priority execution algorithm.
After launch, BX Options will integrate additional functionality such as pro rata allocation with customer priority and directed participation in certain products. These enhancements will require additional SEC filings and approvals prior to implementation.
Have proposed BX Options rules been filed with the SEC?
When will testing be available?
Testing is available daily in the BX Options Test Facility. Firms that would like to test must fill out a BX Options port request form to order test ports.
BX Options will also offer Saturday testing on the production system on the following dates:
- June 9, 2012
- June 23, 2012
Firms will need production ports for the Saturday Tests, which can be requested via the BX Options port request form.
Do firms need to register for the Saturday test?
Yes, firms should email NASDAQ OMX Trading Services to register for the test.
What symbols will be available for testing on June 9th and 23rd?
All Penny Pilot Options will be available for testing on both Saturday production tests.
What is the rollout schedule for BX Options?
BX Options will launch June 29, 2012 (pending SEC approval) with options based on 1-5 underlying securities.
What interfaces will be available for BX Options?
BX Options will share the common architecture utilized by NOM and PHLX. Participants on the new BX Options market will be able to leverage their current connectivity to NOM/PHLX and will only need new logically separate BX Options ports. To order ports, firms need to fill out the BX Options port request form.
The BX Options FIX specification is identical to the NOM FIX specification.
What market data will be available on BX Options?
BX Options will offer BX Top (identical to NOM BONO), BX Depth (identical to NOM ITTO) and BX Glimpse (identical to NOM Glimpse). Market data specifications can be found on the BX Options specifications page.
Bandwidth recommendations are 40 Mb for BX Top and 120 Mb for BX Depth.
How do firms order and connect to BX Options market data?
What is the BX Options fee structure?
Transaction fees will be announced at a later date. There will be no initial fees for ports or market data.
Are there any fees associated with testing?
No. BX Options will not charge for testing or test ports.
How do firms become members of BX Options?
Firms should follow the membership instructions on the BX Options web page.
Are there BX Options membership fees?
Membership, application, distribution and trading rights fees will be waived for BX members that only conduct an options business on BX (i.e., no equity trading).
Where can I find more information?
- Refer to the BX Options Page on the NASDAQ Trader® website.
- Refer to the BX Options FAQs.
- Refer to the BX Options Fact Sheet.
- 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.