Wednesday, September 12, 2012
Options Regulatory Alert #2012 - 8
NOM Eliminates Market Maker Quote Obligations Before Regular Market Hours
What you need to know:
What is changing?
The NASDAQ Options MarketSM (NOM) filed with the Securities and Exchange Commission (SEC) to remove the Market Maker quote obligations before regular market hours, including the pre-opening phase and at market open. Effective September 10, 2012, Market Makers are no longer required to quote at the open or in the pre-opening phase on NOM. All other Market Maker obligations remain the same and can be accessed at Ch VII Sec 6(d).
Will this change impact the quality of the market opening on NOM?
No. NOM has a robust opening based on two other options exchanges quoting a given symbol before NOM will open quoting or trading in the symbol. The NOM open will not trade through the National Best Bid and Offer (NBBO). The elimination of market open obligations will help Market Makers provide liquidity more effectively.
Will BX Options adopt the same rule change?
Yes. BX Options is currently in the process of submitting a similar filing to adopt the same rule change. Currently, opening quote obligations for options Market Makers on BX Options are still in effect.
Where can I find additional information?
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