Friday, September 28, 2012

Equity Trader Alert #2012 - 40
NASDAQ, BX and PSX Pricing Update Effective Monday, October 1, 2012

Markets Impacted:

Contact Information:

What you need to know:

  • Effective Monday, October 1, 2012, PSX will update pricing for Tape A, B and C securities priced at or above $1, pending filing with the Securities and Exchange Commission (SEC).
  • Effective Monday, October 1, 2012, BX will introduce an additional method to qualify for the QLP program, pending filing with the SEC.
  • Effective Monday, October 1, 2012, NASDAQ, BX and PSX will update routing strategy fees for orders sent to the New York Stock Exchange (NYSE) and PSX, pending filing with the SEC.

What is changing in regard to NASDAQ OMX PSXSM (PSX) pricing for Tape A, B and C shares executed at or above $1?

Rebate to Add Liquidity (Displayed)
MPIDs adding greater than 0.1% of Total Consolidated Volume on average daily (TCV) $0.0028/share
MPIDs adding greater than 0.05% of TCV and adding a minimum of 1,000 customer contracts per day on PHLX $0.0028/share
All other MPIDs $0.0026/share
Rebate to Add Liquidity (Non-Displayed)
All MPIDS$0.0010
Fee to Remove Liquidity
Routable orders $0.0028/share
Non-routable orders sent via MPIDs adding greater than 0.1% of TCV $0.0028/share
Non-routable orders sent via all other MPIDs $0.0030/share

Note that the distinct pricing for minimum life orders and orders of 2,000 shares or greater will be discontinued.

What is changing in regard to qualifications for the Qualified Liquidity Provider (QLP) program on NASDAQ OMX BXSM (BX)?

Effective October 1st, BX will introduce an additional qualification method for MPIDs to be designated as "Qualified Liquidity Providers" (QLPs). MPIDs will now qualify for the QLP program by satisfying each requirement in either Method 1 or Method 2:

Method 1

  • Quoting at least 150 securities at the National Best Bid or Offer (NBBO) at least 25% of the month, and
  • Belonging to a firm with total BX volume (added and removed) greater than 0.50% of consolidated volume, of which added liquidity is at least 0.40% of consolidated volume

    • Method 2

    • Quoting at least 400 securities at the National Best Bid or Offer (NBBO) at least 25% of the month, and
    • Belonging to a firm with total BX volume (added and removed) greater than 0.45% of consolidated volume, of which added liquidity is at least 0.35% of consolidated volume

    What is changing in regard to The NASDAQ Stock Market® (NASDAQ®) fees for routing shares executed at or above $1 to PSX?

    Effective October 1st, the fee to route to PSX via the SAVE, SOLV and TFTY routing strategies will increase to $0.0028 per share.

    Effective October 1st, NASDAQ routed CART executions occurring on PSX will be $0.0030, all tapes.

    What is changing in regard to NASDAQ fees for routing shares executed at or above $1 to NYSE?

    Effective October 1st, the fee to route to NYSE via the SAVE and SOLV routing strategies will increase to $0.0025 per share while the fee to route to NYSE via the TFTY routing strategy will increase to $0.0024 per share. Additional rates to route to NYSE can be found in the table below.

    Rates to Route to NYSE
    All U.S. Equities Per Share Executed
    Fee for all routing strategies (excluding those specified above) that check the NASDAQ book $0.0025
    Rebate for liquidity added to NYSE $0.0015
    Fee for MOPP orders and directed Intermarket Sweep Orders (ISO) $0.0027
    Fee for Non-ISO ISNY orders for firms that add less than 35 million shares (based on average daily shares of liquidity per month) $0.0027
    Fee for Non-ISO ISNY orders for firms that add 35 million shares or more (based on average daily shares of liquidity per month) $0.0026

    What is changing in regard to BX fees for routing shares executed at or above $1 to PSX?

    Effective October 1st, the fee to route to PSX via the BCRT and BTFY routing strategy will increase to $0.0030 per share.

    What is changing in regard to BX fees for routing shares executed at or above $1 to NYSE?

    Effective October 1st, the fee to route to NYSE via the BSTG, BSCN, and BTFY routing strategies will increase to $0.0025 per share while the fee to route to NYSE via the BMOP routing strategy will increase to $0.0027 per share.

    What is changing in regard to PSX routing fees for shares executed at or above $1 to PSX?

    Effective October 1st, the fees to route from PSX using PSTG, PSCN, PTFY, PMOP or PCRT routing strategies will reflect the information found in the table below. Using the PSX router's PSCN and PSTG strategies, firms can access all NMS destinations for a maximum fee of $0.0028 per share.

    Routing Strategy NASDAQ BX NYSE Other
    PSTG .0028 -.0014 .0025 .0028
    PSCN .0028 -.0014 .0025 .0028
    PTFY .0028 -.0014 .0024 .0005
    PMOP .0031 .0031 .0027 .0031
    PCRT .0028 -.0014 n/a n/a

    Where can I find additional information?

    Contact NASDAQ OMX Trading Services at +1 212 231 5180

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    About the NASDAQ OMX Group:
    The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with more than 3,600 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit www.nasdaqomx.com.

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