NASDAQ Options Market (NOM)

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NASDAQ Options Market
Founded Mar. 31, 2008
Headquarters New York, NY USA
Products Equity, ETF and index options
Website www.nasdaqtrader.com

The NASDAQ Options Market ("NOM") is one of NASDAQ OMX Group's (Nasdaq:NDAQ) two electronic options markets. (The other is Nasdaq OMX Phlx.) NOM is a U.S. options exchange. After an announced delay in December of 2008, the exchange received rule approval from the Securities and Exchange Commission in mid-March of 2008. [1][2]

Nasdaq Options Market offers participants a price/time priority trading system, with depth of market and proprietary data feeds.[3]

The system links with and complies with the obligations of the Option Intermarket Linkage Plan.

In mid-April of 2009, NASDAQ Options Market announced it would implement new pricing, subject to filing with the Securities and Exchange Commission (SEC). Amid the changes, the NASDAQ Options Market expanded the list of options in which orders with an account type of “customer” remove liquidity for free to all Penny Pilot options. The NASDAQ Options Market also introduced a rebate of $0.20 per executed contract for orders with an account type of "Customer" that remove liquidity on Non-Penny Pilot options. NOM also announced that market makers and firms would receive a rebate of $0.25 per executed contract for providing liquidity in Penny Pilot options and would be charged a fee of $0.30 per executed contract for providing liquidity in non-Penny Pilot options.[4]

Background

According to the NASDAQ, the move to decimalization would shift the competitive landscape toward market platforms that are equipped to handle extremely high volume with an equally high level of efficiency.[5] The NASDAQ has said its options market would leverage the NASDAQ equities trading system that it acquired through the INET acquisition.[6]

Market participants include options order-entry firms (OEFs) that represent customer orders as agent on the NASDAQ Options Market and non-market maker participants conducting proprietary trading as principal. There will be no restriction on an OEF’s ability to enter orders on both sides of the market.

Options market makers are options participants registered with the exchange as options market makers and registered with the NASDAQ options market in an options series listed on the NASDAQ Options Market. To become an options market maker, an options participant is required to register by filing a written application.[7]

Products and Services

Also See

NASDAQ Options Market FAQs

References

  1. "NASDAQ Options Market Receives SEC Approval ”. Nasdaq.
  2. Press Release: NASDAQ Options Market Launch To Be Rescheduled. Nasdaq.
  3. The NASDAQ Options Market Overview. Nasdaq OMX.
  4. Options Trader Alert #2009 - 11. Nasdaq OMX.
  5. Press Release:NASDAQ Announces It Will Create An Options Market. Nasdaq.
  6. Press Release: NASDAQ Press Release: NASDAQ's INET Acquisition Clears DOJ. Nasdaq.
  7. NASDAQ Options Market. Nasdaq.
Categorgy:NASDAQ OMX