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Thursday, August 25, 2011

Options Trader Alert #2011 - 41
Reminder: NASDAQ OMX Will Begin the NOM 2.0 Rollout Tomorrow, Friday, August 26

Markets Impacted:

Contact Information:

What you need to know:

  • The NASDAQ Options MarketSM (NOM) will launch NOM 2.0 tomorrow, Friday, August 26, 2011.
  • NOM will roll out five underlyings to NOM 2.0 tomorrow, August 26th, with additional symbols being subsequently rolled out on a weekly basis.

What is changing?

As announced in OTA #2011-34, NOM 2.0 will launch tomorrow, Friday, August 26, 2011. NOM plans to introduce options on a small number of underlyings to NOM 2.0 on the first day, with additional symbols to follow.

What is the rollout schedule?

In order to minimize the disruption to NOM participants, the rollout will be completed as quickly as possible while maintaining the highest level of stability.

Timeline and symbols:

  • August 26, 2011 – ABX, CNQ, ESRX, NE, WHR
  • August 31, 2011 – ADBE, APOL, BRCD, BRCM, CBS, CMCSA, CMI, DAL, EMC, F, FXE, GE, GLW, HRBN, IP, KSS, LNKD, LTD, M, ODP, PCLN, RENN, RVBD, SD, SINA, SMH, SPLS, TSN, UNH, URBN, WAG, WFT, XHB, XLF, XLK
  • September 9, 2011 – Approximately 200 additional products
  • Week of September 12, 2011 – No products will be rolled out due to expiration
  • September 20, 2011 – Approximately 200 additional products
  • September 26, 2011 – Complete rollout

When will testing be available?

As announced in OTU #2011-5, testing is currently available in the Options Testing Facility (OTF) and will continue to be available during the rollout. For more information, please contact NASDAQ OMX Trading Services.

What do I need to do to prepare?

Firms should:

  • Provide NASDAQ OMX with NSCC numbers for direct debit billing as per ORA #2011-6. Firms need to complete this process in order to trade on NOM 2.0.
  • Contact NASDAQ OMX® Membership to set up NOM 2.0 exchange accounts, convert MPIDs to mnemonics and convert Market Maker MPIDs to badges (similar to PHLX participant ID structure) as per ORA #2011-7.
  • Perform testing in the Options Test Facility
  • Review the updated market maker requirements as per ORA #2011-10.
  • Review market data specifications.
  • Review specifications for the following interfaces (Clearing firms should closely review the last 3 bullets):
    • NOM 2.0 OTTO – Order-by-order interface based on OUCH technology, used by market makers to provide two-sided liquidity.
    • SQF – Bulk-quoting interface used by market makers to provide two-sided liquidity.
    • NOM 2.0 FIX – Order entry interface that will become available to firms once the rollout completes.
    • NOM 2.0 FIX DROP Copies – Provides copies of messages sent over firms’ FIX order entry lines for clearing or risk management.
    • NOM 2.0 OTTO DROP Copies - Provides copies of messages sent over firms’ OTTO interfaces for clearing or risk management. Firms using OTTO on NOM 2.0 will need a separate NOM 2.0 OTTO DROP line to receive copies of NOM 2.0 messages.
    • Clearing Trade Interface (CTI) – Provides copies of clearing trades submitted to the Options Clearing Corporation (OCC).

Where can I find more information?

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