Friday, July 27, 2012
Options Technical Update #2012 - 11
BX Options, NOM and PHLX Announce Enhancements to SQF Cancel-on-Disconnect
What you need to know:
What is changing?
On August 3rd, NASDAQ OMX PHLXSM (PHLX®) will introduce enhancements to SQF COD functionality. NASDAQ OMX BX Options (BX Options) and The NASDAQ Options Market (NOMSM) are introducing the same enhancements on September 17th.
How does COD currently work?
Currently, when a Market Maker loses SQF connectivity, open quotes are only cancelled if the Market Maker loses connectivity to all SQF ports that are associated with the Market Maker's ID.
What is the new COD functionality enhancement?
The new SQF COD functionality is an optional port configuration. If a port is disconnected and quotes for a given underlying have been sent over the disconnected port for that Market Maker ID, all open quotes associated with that Market Maker ID and underlying will be cancelled immediately across all ports. The COD action will be taken regardless of whether there are other SQF ports for the same Market Maker ID still connected. This new feature provides Market Makers with an opportunity to take a more aggressive approach towards COD.
How do firms take advantage of this new feature?
Firms wishing to configure their SQF ports for this new COD feature should contact Subscriber Services at +1 212 231 5180.
Where can I find more information?
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