What is changing on PHLX in regard to PIXL Pricing?

NASDAQ OMX PHLX^SM (PHLX^®) will update its pricing for Price Improvement XL (PIXL^SM). As of October 1, 2012, PIXL pricing will be as follows: Initiating Order (Sections I and II) will be $0.07 per contract or $0.05 per contract if the participants’ Customer Rebate Program Threshold Volume achieves the highest tier.

In Section I, Select Symbols (make/take names) Customer PIXL Order will remain free when contra to the Initiating Order. All non-Customer market participant PIXL Orders will be assessed a fee of $0.30 per contract when contra to the Initiating Order. All PIXL Orders will receive the Rebate to Add Liquidity in Section I when contra to an Auction Responder or a contra-side order or quote that was entered into the market after the PIXL auction was started. All PIXL Orders that trade against a resting order or quote that was entered into the market before the PIXL Auction started will have their Fee to Remove Liquidity reduced to $0.30 per contract. PIXL Auction Responders will have their Fee to Remove Liquidity reduced to $0.30 per contract.

In Section II, Multiply-Listed Options Customer PIXL Order will remain free in all instances and all non-Customer market participant PIXL Orders will be assessed a fee of $0.30 per contract. Responders to PIXL auctions will be assessed a fee of $0.30 per contract. Payment for Order Flow is applicable when a Customer PIXL Order is contra to a Market Maker that responded to the Auction or against a resting Market Maker quote or order. The $0.30 per contract fees discussed herein will apply to the Monthly Market Maker Cap, except with respect to the Initiating Order fee. Resting contra-side orders or quotes will pay the appropriate transaction fees defined in Section II.

Where can I find more information?

• Refer to www.nasdaqomxtrader.com/pricing

• Contact NASDAQ Options & Futures Market at +1 215 496 1571