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Product LoginTuesday, March 3, 2009
Options Trader Alert #2009 - 8
The NASDAQ Options Market Implements “WAIT”, a One Second Order Modifier, Effective Immediately
Markets Impacted:
- The NASDAQ Options Market
Contact Information:
- U.S. Transaction Services Market Sales at +1 800 846 0477
What you need to know:
- The NASDAQ Options Market has filed with the Securities and Exchange Commission (SEC) to offer the “WAIT” order modifier for use with orders entered into The NASDAQ Options Market.
- The change is effective immediately.
What is changing?
On Friday, February 27, 2009, The NASDAQ Options MarketSM submitted a rule filing to the Securities and Exchange Commission (SEC) to offer the "WAIT" order modifier for use with orders entered into The NASDAQ Options Market, effective immediately. This modifier is designed to help firms manage the Order Exposure requirement as outlined in Chapter VII, section 12 of The NASDAQ Options Market rules.
How does the "WAIT" order modifier work?
Upon entry into the NASDAQ Options system, "WAIT" orders are held for one second before being submitted to the trading engine. After one second, the order is processed for potential display and/or execution in accordance with the entering party’s order entry instructions.
What does this change mean for my firm?
As announced in Options Trader Alert #2009-7, The NASDAQ Options Market reduced the minimum exposure period required for agency limit orders from three seconds to one second. Firms can use the new "WAIT" order type to facilitate this exposure period.
A firm can use the new "WAIT" order to comply with the agency order exposure requirements by entering both the customer order and the firm/market maker order separately and simultaneously, and marking the firm/market maker order as a "WAIT" order. The system will hold the firm/market maker order (marked as "WAIT") for one second before sending it to the trading engine. If the customer order is not already executed and there are no other orders with higher priority, the firm/market maker order will execute against the customer order.
When does this change take effect?
The change is effective immediately.
Where can I find more information?
- Refer to The NASDAQ Options Market page on the NASDAQ OMX Trader® website.
- For questions about equity and options trading, contact U.S. Transaction Services Market Sales at +1 800 846 0477.
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