NASDAQ OMX PSX

NASDAQ OMX PSX (PSX) is a new equity trading platform scheduled to launch in the third quarter of 2010. With this new equity trading platform, NASDAQ OMX will become the only exchange to offer an active price/size priority model for trading U.S. equities, pending Securities and Exchange Commission (SEC) approval. The timing of the launch and PSX rules and market structure are subject to regulatory review by the Securities and Exchange Commission (SEC). Accordingly, the information provided in this document is subject to future modification.


What is a Price/Size Model?

In a price/size model, orders posted on the book are allocated shares based on the following hierarchical criteria:

  1. Best Price
  2. Displayed Liquidity
  3. Pro Rata Distribution

PSX will operate as a Reg NMS protected quote, trading securities listed on NASDAQ, NYSE, NYSE Amex and NYSE Arca and will run on proven INET technology. In addition, customers will be able to leverage their current connectivity to NASDAQ OMX data centers and their current membership to NASDAQ OMX PHLX.

View PSX Matching Logic Examples.

Why a Price/Size Model?

The pro-rata model rewards market participants for committing capital and displaying large size. The more shares you display relative to the overall PSX market, the more shares you are allocated and the faster your order is executed. This market structure encourages greater displayed size, which increases transparency, promotes market stability and enables additional trading strategies.

Membership

PSX will utilize the NASDAQ OMX PHLX (PHLX) equity trading license. Therefore:

Refer to our PSX Participant FAQs for more information.

Connectivity

PSX intends to offer the following protocols for the input of orders:

Specifications
Order Entry  
OUCH Version 3.1 OUCH Version 3.2
OUCH Version 4.0 OUCH Version 4.1
RASHport Version 1.0 RASHport Version 1.1
INET FIX  
Clearing  
Drop Version 2.1 DROP Version 2.20

For more information, refer to our PSX Trading and Connectivity FAQs. For market data specifications, see Data News #2010-6.

Market Data

NASDAQ OMX will introduce the following a proprietary data feeds to support the launch of PSX:

PSX TotalView-ITCH – Provides full order depth and last sale information.

PSX Historical TotalView ITCH – Offers a historical record of the order and trade transaction data from the PSX TotalView-ITCH data feed. Subscribers to this historical product may download daily transaction logs on a T+1 basis from a secured website or FTP server.

PSX Basic - Provides key data elements for all exchange-listed equities traded on the PSX execution system.

  • PSX Last Sale (PLS) - Tick-by-tick price and size information for orders executed within the PSX execution system.
  • PSX Best Bid and Offer (PSX BBO) – The highest bid price and lowest offer price, with associated size, available within the PSX execution system.
  • Market Status Information – Includes Trading Halts and Emergency Market Condition (EMC) event messages.

For more information, refer to the market data technical specifications page, Data News #2010-6 or contact your NASDAQ OMX Global Data Products at +1 301 978 5307 for more information.

Please note, PSX will be represented with the ‘X’ identifier on the following on the consolidated quote and last sale data feeds:

  • UTP Quotation Data Feed (UQDF)
  • UTP Trade Data Feed (UTDF)
  • Consolidated Quotation System (CQS)
  • Consolidated Tape System (CTS)

See the SIAC Notice from 2/9/2010 and UTP Vendor Alert #2010-1 for more information.

Testing

Testing opportunities for NASDAQ OMX PSX are available on a daily basis. The next Saturday test will be held on September 25, 2010. To participate in testing, please contact NASDAQ OMX Trading Services at +1 212 231 5180.

Clearing

PSX will be looking to utilize the NSCC Regional Interface Operation (RIO) and the Consolidated Trade Summary for clearing.

 

Next Saturday Test

  • September 25th

Additional Resources

Contact Information