Friday, December 17, 2010
Equity Trader Alert #2010 - 83
NASDAQ Updates Pricing Effective Monday, January 3, 2011
Markets Impacted:
Contact Information:
- Transaction Services U.S. Market Sales at +1 800 846 0477
- NASDAQ OMX Subscriber Services at +1 212 231 5180
What you need to know:
- Effective Monday, January 3, 2011, The NASDAQ Stock Market® (NASDAQ®) will update pricing, pending filing with the Securities and Exchange Commission (SEC).
What is changing?
Effective Monday, January 3, 2011, NASDAQ will make the following pricing changes, pending filing with the SEC:
- An additional rebate tier of $0.0015 per share will be available for firms adding at least three million shares of non-displayed liquidity (for all U.S. equities).
- NASDAQ routing strategy pricing updates:
- For orders executed using the SAVE and QSAV routing strategies, the following pricing changes will be implemented:
- The fee to remove liquidity for orders that execute on NASDAQ will decrease from the standard rate of $0.0030 to $0.0027 per share.
- Updated 12/28/2010: The fee for orders that execute on NYSE will increase from $0.0010 to $0.0022 per share.
- The rebate for orders that execute on NASDAQ OMX BXSM (BXSM) will pass through the new BX rebate of $0.0014 per share.
- For orders executed using the TFTY and QTFY routing strategies, the rebate for orders that execute on BX will pass through the new BX rebate of $0.0014 per share.
- Directed orders sent to BX will receive a rebate of $0.0005.
- For shares executed below $1.00, the fee to remove liquidity will be 0.30% (i.e. 30 basis points) of total dollar volume.
What is the new rebate schedule for non-displayed orders?
The rebate schedule for non-displayed liquidity will be as follows:
Rebate for Non-Displayed Orders (based on average daily shares per month for all U.S. equities) | Per Share Executed |
---|---|
Greater than 3 million shares added of non-displayed liquidity only (for all U.S. equities) | $0.0015 |
Greater than 35 million shares added | $0.0015 |
Greater than 20 million shares added
of which Greater than 8 million shares added in Tape B securities |
$0.0015 |
Greater than 25 million shares U.S. equity securities added on NASDAQ
and Greater than 200,000 contracts U.S. equity options removed on The NASDAQ Options Market |
$0.0015 |
Other | $0.0010 |
What is the new SAVE and QSAV pricing?
Pricing for orders executed using the SAVE and QSAV routing strategies will be as follows:
SAVE and QSAV Strategies | Per Share Executed |
---|---|
Rebate for orders that execute on BX | $0.0014 (Rebate) |
Fee for orders that execute on PSX | $0.0013 |
Fee for orders that remove liquidity from NASDAQ | $0.0027 |
Fee for orders that execute on NYSE | $0.0022 |
Fee for orders that execute on other protected quotes and additional destinations | $0.0026 |
Rebate for orders that add liquidity to NASDAQ | Standard NASDAQ add rates apply |
What is the new TFTY and QTFY pricing?
For orders sent using the TFTY and QTFY routing strategies, the rebate for orders that execute on BX will pass through the new BX rebate of $0.0014 per share.
What is the pricing for Directed Orders to BX?
Directed Orders sent to BX will receive a rebate of $0.0005 per share.
What is changing for the new sub-dollar pricing on NASDAQ?
For shares executed below $1.00, the fee to remove liquidity will be 0.30% (i.e. 30 basis points) of total dollar volume.
Where can I get additional information?
- Refer to Equity Trader Alert #2010-81.
- Refer to the NASDAQ pricing page on the NASDAQ OMX Trader® website.
- Contact Transaction Services U.S. Market Sales at +1 800 846 0477.
- Contact NASDAQ OMX Subscriber Services at +1 212 231 5180.
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