Thursday, February 28, 2013

Equity Trader Alert #2013 - 18
NASDAQ OMX Pricing Updates, Effective March 1, 2013

Markets Impacted:

Contact Information:

What you need to know:

  • Effective Friday, March 1, 2013, NASDAQ will implement the following pricing changes:
    • The introduction of Designated Retail Orders
    • The introduction of an additional NASDAQ/NOM rebate tier for firms trading on both NASDAQ and NOM
    • The discontinuation of the Designated Securities pricing incentive

What changes are being made to NASDAQ rebates for adding displayed liquidity?

Pending Securities and Exchange Commission (SEC) filing, The NASDAQ Stock Market® (NASDAQ®) will introduce rebates for Designated Retail Orders providing displayed liquidity in securities priced $1 or more. Effective Friday March 1, 2013, Designated Retail Orders will earn the following rebates for adding displayed liquidity:

  • $0.0034 per share for MPIDs trading at least .0.1% of consolidated volume and on which at least 90% of added liquidity is from Designated Retail Orders
  • $0.0033 per share for all other MPIDs

What is a Designated Retail Order?

A Designated Retail Order is an agency or riskless principal order that originates from a natural person and is submitted to the Exchange by a Member, provided that no change is made to the terms of the order (e.g., price or side of market), and the order does not originate from a trading algorithm or any other computerized methodology.

Is my firm eligible to submit Retail Orders?

Members must meet the following criteria in order to submit Retail Orders:

How do I designate my order as a Retail Order?

Members may designate an order, or all orders on a given port, as "Retail" by setting the "Customer Type" parameter equal to "R". Please refer to order entry specifications for more information.

Will Retail Orders receive a different liquidity code?

Retail Orders that add displayed liquidity will receive an "e" liquidity code.

What rebate changes are being made for members trading on both NASDAQ and The NASDAQ Options MarketSM (NOM)?

Pending SEC filing, NASDAQ will introduce an additional equity rebate tier for firms trading on both NASDAQ and NOM. Effective Friday March 1, 2013, members meeting the following criteria will receive a rebate of $0.0030 per share of displayed liquidity provided in securities priced $1 or more:

  • Provides liquidity of at least 0.45% of consolidated volume on NASDAQ
  • Qualifies for NOM Rebate to Add Liquidity in Penny Pilot Options Tier 7

What changes are being made to NASDAQ fees to remove liquidity?

Effective Friday, March 1, 2013, NASDAQ will no longer offer a reduced fee for removing liquidity in shares of Designated Securities. Standard fees to remove liquidity will now apply to these securities.

Where can I find additional information?



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About the NASDAQ OMX Group:
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with more than 3,600 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit www.nasdaqomx.com.