NASDAQ OMX PHLX
|NASDAQ OMX PHLX|
|Products||Options and Derivatives|
NASDAQ OMX PHLX was formed in July of 2008 when the NASDAQ OMX Group took over the Philadelphia Stock Exchange. Under the transformation, NASDAQ OMX PHLX became part of the NASDAQ Transaction Services U.S. group. It continues as a distinct entity alongside The NASDAQ Options Market, launched in March 2008.
With the transaction, NASDAQ OMX Group has a combined 17 percent market share in the U.S. equity options market between its two market models making it a serious contender in options trade as it now has a much larger footprint in global derivatives.
Through NASDAQ OMX PHLX, the NASDAQ OMX Group is able to offer customers both electronic and hybrid floor-based options trading.
NASDAQ OMX PHLX maintained operations at The Philadelphia Stock Exchange building along with the options trading floor.
The Wall Street Journal reported in April of 2007 that the two exchanges had been discussing a possible deal for months. The Philadelphia exchange, which was the third-largest options exchange in the U.S., was majority-owned by a group of brokerage firms. The six Wall Street firms - Merrill Lynch, Citadel Derivatives Morgan Stanley, Citigroup, Credit Suisse and UBS - held a collective 89.4 percent stake in PHLX.
The member-owned exchange announced an agreed $652 million cash sale to the NASDAQ on Nov. 7, 2007. That deal closed in the first quarter of 2008.
In early 2010, Nasdaq OMX PHLX adopted maker-taker pricing for some of its most actively traded options. Instead of charging market makers fees it began giving rebates for providing liquidity, and it began charging fees to customers.
Products and Services
Key People As A Result Of The Transition
- Robert Greifeld is NASDAQ OMX CEO. His title previously was president and chief executive officer of the Nasdaq Stock Market, Inc.
- Meyer (Sandy) Frucher, former chairman and CEO of The Philadelphia Stock Exchange is vice chairman of the NASDAQ OMX Group.
- Adam Nunes, former vice president, transaction services at The Nasdaq Stock Market, Inc. and Head of The NASDAQ Options Market is now head of U.S. Options.
- Chris Concannon, former executive vice president, transaction services for The NASDAQ Stock Market is now executive vice president of NASDAQ OMX Transaction Services.
- Thomas A. Wittman was a former executive vice president & chief technology officer at PHLX and senior vice president of trading system development at the Philly exchange. He is now president of NASDAQ OMX PHLX.
- The Philly Stock Exchange and the Death of America’s Cities. The Wall Street Journal.
- Press Release. MarketWatch.
- ANALYSIS-PHLX Set To Turn Nasdaq Into Options Contender. Reuters/Forbes.
- Press Release. NASDAQ OMX PHLX.
- Nasdaq In Takeover Talks With Philadelphia Exchange. Finextra.
- Philadelphia Exchange Takes Stock of its History. The Philadelphia Inquirer.
- New Pricing at Options Exchanges Impacts Market Makers and Customers. Traders Magazine.