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Wednesday, October 26, 2011

Options Trader Alert #2011 - 63
PHLX and NOM Update Pricing Effective Tuesday, November 1, 2011

Markets Impacted:

Contact Information:

What you need to know:

  • Effective Tuesday, November 1, 2011, NASDAQ OMX PHLXSM (PHLX®) will update Complex Order pricing, subject to filing with the Securities and Exchange Commission (SEC).
  • Effective Tuesday, November 1, 2011, PHLX will offer a $0.05 per contract rebate to members entering electronically executed Qualified Contingent Cross Orders (“eQCC Orders”), pending filing with the SEC.
  • Effective Tuesday, November 1, 2011, The NASDAQ Options MarketSM (NOM) and PHLX Customer Routing Fees for routing option orders to C2 will be $0.50 per contract, pending filing with the SEC.

What is changing in regards to complex order pricing?

Pending filing with the SEC, effective Tuesday, November 1, 2011, Complex Order pricing in designated options will be removed, and the new fees in all select symbols will be as follows:

Customer
Directed Participant
Specialist, ROT, SQT and RSQT
Firm
Broker-Dealer
Professional
Rebate for Adding Liquidity in all Select Symbols
$0.30
$0.00
$0.00
$0.00
$0.00
$0.00
Fee for Adding Liquidity
$0.00
$0.10
$0.10
$0.20
$0.20
$0.20
Fee for Removing Liquidity in all Select Symbols
$0.00
$0.30
$0.32
$0.35
$0.35
$0.35

As a reminder, Customers receive the rebate when the executions occur as part of the Complex Order Live Auction (“COLA”) and other auctions, regardless of the contra-party. A Customer Complex Order will receive a Rebate for Adding Liquidity as part of COLA, even if a simple order or quote is contra to the resting complex order.

What is changing in regards to eQCC order rebates?

Additionally, a $0.05 per contract rebate will be paid to members entering eQCC Orders electronically pursuant to PHLX Rule 1080(o)(3), pending filing with the SEC. The rebate will not apply to Floor Qualified Contingent Cross Orders (“Floor QCC Orders”) pursuant to PHLX Rule 1064 (e). Members will be required to contact PHLX at + 1 215 496 5000 before submitting eQCC orders in order to obtain an “R” account which will identify eQCC Orders as orders entered by the member for the purposes of applying the rebate.

What is changing in regards to Customer Routing Fees to C2?

Effective Tuesday, November 1, 2011, NOM and PHLX Customer Routing Fees for routing option orders to C2 will be $0.50 per contract, pending filing with the SEC.

Where can I find more information?

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