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Effective Friday, May 1, 2020, pending filing with the SEC, Nasdaq PHLX (PHLX), Nasdaq ISE (ISE) and Nasdaq GEMX (GEMX) amend their pricing as described below:
Nasdaq PHLX
Daily Strategy Fee Caps
- PHLX’s daily fee cap for executing reversal and conversion, merger, short stock interest, jelly roll, and box spread strategy trades on the same trading day for all options classes in the aggregate will be reduced from $1,100 to $1,000. This cap will apply when such members are trading (1) in their own proprietary accounts; or (2) on an agency basis. If transacted on an agency basis, the daily cap will apply per beneficial account.
- Furthermore, this pricing change will decrease the reversal and conversion, merger, short stock interest, jelly roll, and box spread daily strategy cap from $1,100 to $700 when Lead Market Makers, Market Makers, Professionals, Firms and Broker-Dealers execute reversal and conversion, merger, short stock interest, and box spread strategies on the same day in a single class of options.
Nasdaq ISE
Market Maker Plus
- The ISE Market Maker Plus program will be adjusted in symbols SPY, QQQ, and IWM per the schedule below, replacing Market Maker Plus Tier 1 with Tiers 1a and 1b.
Market Maker Plus Tier (Specified Percentage) | Regular Maker Rebate | Linked Maker Rebate |
Tier 1a (50% to less than 65%) | $0.00 | N/A |
Tier 1b (65% to less than 80%) | ($0.05) | N/A |
- There will be no change to the Market Maker Plus Linked Maker Rebate Program, which will continue to apply to Market Maker Plus participants achieving Tiers 2 and higher.
QCC and Solicitation Rebate Amendment
- “Solicited Orders” will be defined as QCC orders and/or solicited orders executed in the Solicitation and Facilitation Mechanisms.
- Orders marked as solicited in the Price Improvement Mechanism (PIM) will no longer be eligible for QCC and Solicitation Rebates.
- There will be no change in volume thresholds or applicable rebates for transactions which qualify for QCC and Solicitation Rebates.
Nasdaq GEMX
Regular Order Fees and Rebates
- GEMX Regular Order Maker Rebates in Penny Symbols will be amended as follows:
Market Participant | Maker Rebate: Tier 1 | Maker Rebate: Tier 2 | Maker Rebate: Tier 3 | Maker Rebate: Tier 4 | Maker Rebate: Tier 5 |
Market Maker | ($0.28)($0.20) | ($0.30)($0.25) | ($0.35)($0.30) | ($0.45)($0.41) | ($0.45) |
Non-Nasdaq GEMX Market Maker (FarMM) | ($0.25)($0.20) | N/A | N/A | N/A | N/A |
Firm Proprietary / Broker-Dealer | ($0.25)($0.20) | N/A | N/A | N/A | N/A |
Professional Customer | ($0.25)($0.20) | N/A | N/A | N/A | N/A |
Priority Customer | ($0.25) | ($0.40) | ($0.48) | ($0.53) | ($0.53) |
- GEMX Regular Order Taker Fees in Penny Symbols will be amended as follows:
Market Participant | Taker Fee: Tier 1 | Taker Fee: Tier 2 | Taker Fee: Tier 3 | Taker Fee: Tier 4 | Taker Fee: Tier 5 |
Market Maker | $0.50 | $0.50 | $0.50 | $0.48 | $0.48 |
Non-Nasdaq GEMX Market Maker (FarMM) | $0.50 | $0.50 | $0.50 | $0.48 | $0.48 |
Firm Proprietary / Broker-Dealer | $0.50 | $0.50 | $0.50 | $0.49 | $0.49 |
Professional Customer | $0.50 | $0.50 | $0.50 | $0.49 | $0.49 |
Priority Customer | $0.48 $0.49 | $0.47 $0.48 | $0.47
$0.48 | $0.45 $0.43 | $0.42 |
- The Tier 4 Qualifying Tier Threshold will be modified and a new Tier 5 will be introduced per the below table.
Qualifying Tier | Total Affiliated Member Volume | Priority Customer Maker Volume
| Tier 4 | Executes 2.50% to less than 3.50% of Customer Total Consolidated Volume | Executes Priority Customer Maker Volume of 1.20% to less than 2.75% of Customer Total Consolidated Volume |
Tier 5 | Executes 3.50% or greater of Customer Total Consolidated Volume | Executes Priority Customer Maker Volume of 2.75% or greater of Customer Total Consolidated Volume or more |
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