Friday, April 27, 2012
Equity Trader Alert #2012 - 17
NASDAQ, BX and PSX Pricing Update Effective Tuesday, May 1, 2012
What you need to know:
What is changing in regard to rebates for midpoint and other non-displayed midpoint orders on NASDAQ?
Effective May 1, 2012, liquidity-providing midpoint peg orders will earn a higher rebate than other non-displayed orders. This will allow firms to receive a higher rebate if they are willing to frequently offer price improvement at the midpoint.
|Added by Firm||Rebate per share|
|Midpoint peg order (firm adds > 3M shares/day of midpoint liquidity)||$0.0017|
|Midpoint peg order (firm adds <3M shares/day of midpoint liquidity)||$0.0015|
|Other non-displayed orders||$0.0010|
What is changing in regard to the Investor Support Program?
Effective May 1, 2012, in order to qualify for ISP Tier 1, the percentage of a firm's added volume that comes from ISP ports is increasing from at least 25% to at least 30%. View the NASDAQ Price List for additional qualifications.
In addition, the ISP rebates for each Tier 1, 2 and 3 will be as follows:
|Rebate on ISP Shares||Rebate on other displayed Shares|
What is changing in regard to NASDAQ Route Rates?
Effective May 1, 2012, NASDAQ will make the following changes to the SAVE and SOLV Route Rates:
- Fees for orders that execute on NASDAQ will be changing from $0.0027 to $0.0030 per share.
- Fees for orders that execute on NYSE will be changing from $0.0022 to $0.0023 per share.
- Fees for orders that execute on other protected quotes and additional destinations will be changing from $0.0026 to $0.0029 per share.
What is changing in regard to rebates for stocks under $1.00 on NASDAQ?
Effective May 1, 2012, liquidity-adding orders on NASDAQ for stocks under $1.00 will no longer receive a rebate.
What is changing in regard to BX pricing?
Effective May 1, 2012, liquidity-removing orders on BX that execute against a midpoint will be free.
How are routing fees on PSX changing?
Effective May 1, 2012, PSTG and PSCN routing strategies on PSX will pass through the $0.0014 rebate when removing liquidity on BX.
Where can I find more information?
- Refer to the NASDAQ, BX and PSX pricing page on the NASDAQ OMX Trader® website.
- Contact Transaction Services U.S. Market Sales at +1 800 846 0477
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