Tuesday, July 31, 2012
Options Trader Alert #2012 - 50
PHLX Pricing Updates, Effective August 1, 2012, BX Pricing Reminder
What you need to know:
What is changing in regard to the Customer Rebate Program?
Effective August 1st, NASDAQ OMX PHLXSM (PHLX®) will include electronically-delivered and executed Customer Complex Orders in Select Symbol into the Multiply-Listed Options Customer Rebate Program. In addition, a rebate of $0.05 will be paid to members executing electronically-delivered Customer Complex Orders in Select Symbols that add liquidity. The complete Customer Rebate Program is described below:
|Average Daily Volume Threshold*||Rebate per Contract Categories|
|Category A||Category B||Category C||Category D|
|0 to 49,999 contracts in a month||$0.00||$0.00||$0.00||$0.00|
|50,000 to 99,999 contracts in a month||$0.07||$0.10||$0.10||$0.00|
|Over 100,000 contracts in a month||$0.09||$0.12||$0.10||$0.05|
Category A: Rebate will be paid to members executing electronically-delivered Customer Simple Orders in Penny Pilot Options, Simple Orders in Non-Penny Pilot Options that remove liquidity and Complex Orders in Non-Penny Pilot Options.
Category B: Rebate will be paid to members executing electronically-delivered Customer Complex Orders in Penny Pilot Options.
Category C: Rebate will be paid to members executing electronically-delivered Customer Simple Orders in Non-Penny Pilot Options that add liquidity.
Category D: Rebate will be paid to members executing electronically-delivered Customer Complex Orders in Select Symbols that add liquidity.
The Average Daily Volume Threshold will be calculated by totaling Customer volume in Multiply Listed Options that are electronically-delivered and executed, except electronic QCC Orders as defined in Exchange Rule 1080(o), and including electronically-delivered and executed Customer Complex Orders in Select Symbols (Threshold Volume). Rebates will be paid on Threshold Volume in a given month, excluding electronically delivered Customer volume associated with PIXL.
What is changing in regard to Select Symbol Complex Order Rebates and Fees for Adding Liquidity?
Effective August 1st, Complex order Rebates for Adding Liquidity will be $0.10 per contract for Specialists, Market Makers, Firms, Broker-Dealers and Professionals. Additionally, Specialists, Market Makers, Firms, Broker-Dealers and Professionals will no longer be charged a Fee for Adding Liquidity in Complex Orders
What is changing in regard to the reduced Firm Electronic Options Transaction Charge threshold?
Currently, Firms must have more than 750,000 electronically-delivered contracts in a month to obtain the reduced Firm Electronic Options Transaction Charge in Penny Pilot and Non-Penny Pilot options of $0.13 per contract. Effective August 1st, PHLX will decrease the threshold amount to 600,000 electronically delivered contracts in a month to obtain the reduced fee.
What is NASDAQ communicating regarding BX Options?
As a reminder, the Customer Rebate to Remove Liquidity on BX Options of $0.12 or $0.32 is paid regardless of the contra-party.
Where can I find more information?
- Refer to the PHLX pricing page on NASDAQ Trader®.
- 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.