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Tuesday, August 3, 2010

Equity Trader Alert #2010 - 48
NASDAQ OMX Announces PSX Transaction Pricing

Markets Impacted:

Contact Information:

What you need to know:

  • NASDAQ OMX® has announced transaction pricing for NASDAQ OMX PSXSM (PSXSM), an equity trading platform with the only active price/size priority model for trading U.S. equities.
  • The launch of PSX is subject to Securities and Exchange Commission (SEC) approval. The announced pricing is subject to filing with the SEC on an immediately effective basis.

What has been announced?

NASDAQ OMX has announced transaction pricing for PSX, pending SEC approval of PSX and filing of the pricing on an immediately effective basis.

Pricing for PSX will be as follows:

Shares Above $1.00 Shares Below $1.00
Rebate to add liquidity $0.0020 per share $0.00
Fee to remove liquidity $0.0013 per share 0.20% (i.e. 20 basis points) of total dollar volume

What is PSX?

PSX is an equity trading platform featuring a price/size priority model. In this 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 The NASDAQ Stock Market® (NASDAQ®), NYSE, NYSE Amex and NYSE Arca, and will run on INET technology. Customers will be able to leverage their current connectivity to NASDAQ OMX data centers and their current membership to NASDAQ OMX PHLXSM (PHLX®).

When will PSX launch?

The launch of PSX is pending SEC approval.

Where can I find additional information?

FINRATM is a trademark of Financial Industry Regulatory Authority, Inc.

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Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 90 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to approximately 3,900 total listings with a market value of approximately $13 trillion. To learn more, visit: business.nasdaq.com.

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