Friday, February 26, 2016

Equity Trader Alert #2016 - 39
Nasdaq Updates Pricing for March 1, 2016

Category:

  • Pricing

Markets Impacted:

Contact Information:

Resources:

Select Symbol Program

Effective March 1, 2016, Nasdaq will eliminate the Select Symbol program as described in Equity Trader Alert 2016-8. The liquidity codes utilized for the Select Symbol program will instead be used for the Small Cap Incentive Pilot announced in Equity Trade Alert 2016-30. More information on the Small Cap Incentive Pilot will be announced on March 1, 2016 for April 1, 2016.

Amended Rebate to Add Displayed Liquidity

Effective March 1, 2016, Member firms who add greater than 0.15% TCV and NOM Market Maker liquidity in Penny Pilot Options and/or Non- Penny Pilot Options of 0.90% or more of total industry ADV in the customer clearing range for Equity and ETF option contracts per day in a month on NOM will received a rebate of $0.00305 per executed share. Previously, the rebate was $0.0030 per executed share.

Amended Pricing for Adding Non-Displayed Liquidity

Effective March 1, 2016 the rebates to add other non-displayed liquidity (other than Midpoint and Supplemental liquidity) will be as follows:

Rebate to Add Other Non-Displayed Liquidity Rebate Liquidity Code
Firm adds greater than 0.03% of TCV of non-displayed liquidity, including midpoint orders$0.0010 for Tape A & B Securities, $0.0005 for Tape C SecuritiesJ
All other firms$0.0000 for all TapesJ

Previously the volume threshold was Firm adds greater than 1 million shares of non-displayed liquidity, including midpoint orders.

Amended NBBO Program

Effective March 1, 2016, Members that execute shares of liquidity provided in all securities through one or more of its Nasdaq Market Center MPIDs that represents 0.5% or more of Consolidated Volume during the month and has a ratio of at least 25% NBBO liquidity provided* to liquidity provided during the month, will receive an additional $0.0002 per share executed credit for displayed quotes/orders (other than Supplemental Orders or Designated Retail Orders) that provide liquidity priced at $1 or more. This rebate will be in addition to any rebate or credit payable under Rule 7018(a) and the ISP and QMM Program under Rule 7014.The previous rebate was an additional $0.0001 per executed share.

*NBBO liquidity provided means liquidity provided from orders (other than Designated Retail Orders, as defined in Nasdaq Rule 7018), that establish the NBBO, and displayed a quantity of at least one round lot at the time of execution.

Effective March 1, 2016, Members that execute shares of liquidity provided in all securities through one or more of its Nasdaq Market Center MPIDs that represents 1.00% or more of Consolidated Volume during the month will receive a rebate of $0.0002 per share executed in Tape A and Tape B securities with respect to all other displayed orders (other than Designated Retail Orders, as defined in Rule 7018) in securities priced at $1 or more per share that provide liquidity, establish the NBBO, and displayed a quantity of at least one round lot at the time of execution. The rebate will be in addition to all other displayed liquidity rebates.

The $0.0004 per share executed NBBO Program rebate in NYSE-listed securities and in Securities Listed on Exchanges other than Nasdaq and NYSE and the $0.0002 per share executed NBBO Program rebate in Nasdaq-listed Securities will be eliminated after the close of business on February 29, 2016.

Amended Qualified Market Maker ("QMM") Program

Effective March 1, 2016, the following QMM rebates will offered:

QMM TiersTape A QMM IncentiveTape B QMM Incentive Tape C QMM Incentive
Tier 1QMM executes shares of liquidity provided in all securities through one or more of its Nasdaq Market Center MPIDs that represent above 0.70% up to, and including, 0.90% of Consolidated Volume during the month$0.0001 $0.0001 $0.0001
Tier 2QMM executes shares of liquidity provided in all securities through one or more of its Nasdaq Market Center MPIDs that represent above 0.90% of Consolidated Volume during the month$0.0002 $0.0002$0.0002

Additionally QMM rebates and the $0.00295 remove fee in Tapes A and B will apply to all MPIDs of a member. Previously the rebates and fees applied only to the primary Nasdaq MPID.

Please see Exchange Rule 7014 for further details.

Amended Lead Market Maker ("LMM") Program

Effective March 1, 2016, Nasdaq will amend the LMM program to provide for incentives for all Nasdaq Crosses, including the Opening, Closing, LULD Halts or other Halts. The below is the pricing schedule.

Performance CriteriaDisplayed Liquidity Rebate (for executions $1 per share and above)Displayed Liquidity Rebate (for executions less than $1 per share)All Crosses (maximum fee)
Percent of time at the national best bid (best offer) ("NBBO")Above 15% to 20%$0.0040 per executed share$0.0000 per executed share$0.0005 per executed share
Percent of time at the NBBOAbove 20% to 50%$0.0043 per executed share$0.0000 per executed share$0.0000 per executed share
Percent of time at the NBBOAbove 50%$0.0046 per executed share$0.0000 per executed share$0.0000 per executed share


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