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Friday, January 18, 2013

Options Trader Alert #2013 - 4
Options on U.S. Treasuries to Begin Trading at the Open on February 19, 2013

Markets Impacted:

Contact Information:

  • PHLX Market Operations at +1 215 496 1571

What you need to know:

  • Effective Tuesday, February 19, 2013, physically-delivered "on-the-run" Options on U.S. Treasuries overlaying the upcoming February auctions for 10-year or 30-year benchmark Treasuries will begin trading on PHLX.
  • The listing and trading of Options on U.S. Treasuries has been approved by the SEC and will not require a change to the Options Disclosure Document.
  • Each firm that desires to trade Options on U.S. Treasuries must be an approved member of the Fixed Income Clearing Corporation (FICC) and should contact their Clearing Member Representative at The Options Clearing Corporation (OCC) to begin the membership process.

What is occurring?

Effective Tuesday, February 19, 2013, NASDAQ OMX PHLXSM (PHLX®) will launch and begin trading physically-delivered "on-the-run" Options on U.S. Treasuries overlaying the upcoming February auctions for 10-year or 30-year benchmark Treasuries. In 2012, PHLX received Securities and Exchange Commission (SEC) approval for the listing of Options on U.S. Treasuries. As part of the approval process, it was determined that no additional modification to the Options Disclosure Document (ODD) will be required.

Each firm that desires to trade Options on U.S. Treasuries must be an approved member of FICC and should contact their OCC Representative for further details about the membership process.

Additionally, PHLX has partnered with BondDesk Group LLC, provider of enterprise-wide fixed income solutions to many of the top broker-dealers in North America. The BondDesk Alternative Trading System (ATS), run by broker-dealer subsidiary BondDesk Trading LLC, member FINRA and SIPC, will provide real-time Treasury prices (data) generated from the nation's largest retail bond trading venue. The prices will be used in support of PHLX's market, regulatory and surveillance operations. Further, PHLX intends to use this data for the purpose of opening and determining settlement values for Options on U.S. Treasuries. This data will not be redistributed by PHLX but can be received directly by contacting BondDesk at +1 212 808 0010.

Where can I find additional information?

For further information, including the proposed contract specifications, please visit http://www.nasdaqtrader.com/treasuries or call +1 215 496 5550 to discuss scheduling a conference call with PHLX and OCC personnel.


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