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Friday, May 29, 2020

Options Trader Alert #2020 - 15
Nasdaq MRX and GEMX Updated Pricing Effective June 1, 2020

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  • Pricing

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Effective Monday, June 1, 2020, pending filing with the SEC, Nasdaq MRX (MRX) and Nasdaq GEMX (GEMX) amend their pricing as described below:

Nasdaq MRX

    Nasdaq MRX (MRX) will institute below pricing for orders executed in the Price Improvement Mechanism (PIM) for both Regular and Complex PIM Orders.

    E. PIM Pricing for Regular and Complex Orders

    Penny Symbols
    Market ParticipantFee for PIM Originating OrdersFee for PIM Contra-Side Orders (1)Fee for Responses to PIM OrdersBreak-up Rebate (2)(3)
    Market Maker (4)$0.20$0.05$0.50N/A
    Non-Nasdaq MRX Market Maker (FarMM)$0.20$0.05$0.50N/A
    Firm Proprietary / Broker-Dealer$0.20$0.05$0.50N/A
    Professional Customer$0.20$0.05$0.50N/A
    Priority Customer$0.00$0.05$0.50($0.40)
    Non-Penny Symbols
    Market ParticipantFee for PIM Originating OrdersFee for PIM Contra-Side Orders (1)Fee for Responses to PIM OrdersBreak-up Rebate (2)(3)
    Market Maker (4)$0.20$0.05$1.10N/A
    Non-Nasdaq MRX Market Maker (FarMM)$0.20$0.05$1.10N/A
    Firm Proprietary / Broker-Dealer$0.20$0.05$1.10N/A
    Professional Customer$0.20$0.05$1.10N/A
    Priority Customer$0.00$0.05$1.10($1.00)
    1. Members that execute an ADV of 10,000 PIM originating contracts or greater within a month will be assessed a fee of $0.02 per contract on the contra-side of a PIM auction (in lieu of $0.05 per contract).

    2. Break-up Rebates apply only to Regular PIM Orders of 500 or fewer contracts and to Complex PIM Orders where the largest leg is 500 or fewer contracts.

    3. Break-up Rebates provided for an originating Priority Customer PIM Order that executes with any response (order or quote) other than the PIM contra-side order. Notwithstanding the foregoing, Members that execute an ADV of 10,000 PIM originating contracts or greater within a month will receive a rebate of (i) $0.45 per contract in Penny Symbols (in lieu of $0.40 per contract) for Complex PIM Orders only, and (ii) $1.05 per contract in Non-Penny Symbols (in lieu of $1.00 per contract) for both Regular and Complex PIM Orders.

    4. This fee also applies to Market Maker orders sent to the Exchange by Electronic Access Members.

    Nasdaq GEMX

      Nasdaq GEMX (GEMX) will amend its pricing for regular orders to pay an additional rebate of $0.05 per contract rebate, in addition to the Tier 1 Maker Rebate in Options 7, Section 3 for Penny Symbols and SPY, for Non-Nasdaq GEMX Market Maker (FARMM), Firm Proprietary/Broker-Dealer, and Professional Customer Orders, that qualify as MARS Eligible Contracts, pursuant to Options 7, Section 4B, and were routed through a qualifying GEMX Member’s routing system.

      MARS Payment

      Additionally, the Exchange proposes to increase MARS Payment tiers. GEMX Members that have System Eligibility and have executed the requisite number of Eligible Contracts in a month will be paid the following per contract rebates:

    TiersAverage Daily Volume ("ADV")MARS Payment
    110,000$0.07 $0.08
    215,000$0.10 $0.11
    320,000$0.13 $0.14

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