Wednesday, July 25, 2012
Options Technical Update #2012 - 10
NOM and BX Options Update FIX Specifications to Support a Post-Only Enhancement
What you need to know:
What is changing?
The NASDAQ Options MarketSM (NOM) and NASDAQ OMX BX Options (BX Options) are updating the FIX specifications to support an optional Post-Only feature, subject to Securities and Exchange Commission (SEC) approval. The new optional feature allows participants to have Post-Only orders returned to them when they would otherwise lock the NBBO or be posted on the book at a price other than their limit.
Pending SEC approval, this feature will be available on NOM on August 1, 2012, and on BX Options on September 28, 2012.
How do Post-Only Orders work?
If a Post-Only Order locks or crosses an existing bid or offer on NOM, the Post-Only order will be re-priced and displayed at a price $0.01 below the current low offer (for buys) or $0.01 above the current best bid (for sells).
If a Post-Only order locks or crosses the NBBO but does not lock/cross a bid or offer on NOM (BX when applicable), it will be re-priced to the current low offer (for buys) or the current best bid (for sells) and will be displayed at a price $0.01 below the best offer (for buys) or $0.01 above the best bid (for sells).
The new optional Post-Only feature allows participants to have their Post-Only Orders returned whenever the order locks or crosses the NBBO or is posted at a price other than its limit price.
How do I enable this feature?
Post-Only Reject functionality is a setting at the FIRM level. To enable this functionality on your ports, please contact Subscriber Services at +1 212 231 5180.
Are there additional changes to the FIX Specifications?
The FIX Specifications have also been updated to add BX Options to Tag 207 (SecurityExchange).
Where can I find more information?
- Refer to the FIX Specifications on the NASDAQ OMX Trader® website.
- Refer to SR-NASDAQ-2012-089 and SR-BX-2012-057.
- Contact NOM or BX Options Market Operations at +1 215 496 1571
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