BX Options features the world-renowned low latency technology found on other Nasdaq trading platforms. Products traded on BX Options are traded with customer priority utilizing either a price/time priority or pro rata allocation algorithm. BX Options operate on a taker/maker fee model with imbedded rebates for marketable customer orders.
2020 EXCHANGE LEADER IN EQUITY OPTIONS TRADING
Nasdaq led all exchanges in total volume traded for equity options across all categories in 2020, including proprietary single-exchange-listed options products. It was also the 11th consecutive year Nasdaq led all exchanges in trading of multiple-listed equity options contracts. In 2020, Nasdaq’s options markets processed 365 million trades and 2.58 billion contracts. These record numbers, combined with handling more than 8.88 trillion messages, made 2020 the most active year of options trading since options were introduced as tradeable products in 1973, and marked a 52% volume increase over 2019.
BX Options is a designed hybrid model purposefully crafted to incentivize a wide variety of flows for a healthy ecosystem.
Price Improvement: PRISM improves options market structure by encouraging additional liquidity in the options marketplace.
Varied Routing Strategies: All market participants may take advantage of BX Options's routing capabilities to meet customer demand.
High-Speed Opening Auction: Collects all pre-market orders and matches all eligible interest at the price at which any imbalance is minimized and matched contracts are maximized.
Order Types: BX Options offers a full suite of auction orders, partial suite of crossing orders, and supports Simple Orders.
BX Options lists all of the industry’s most active options classes. Our unique market structure and technology fosters deep and liquid markets with competitive prices.
- Equity & ETF Options
- Index Options
- Quarterly Options
- Weekly Options
Comprehensive risk management features are built into Nasdaq’s trading technology and include the following protections on BX Options.
Order Price Protection (OPP): Checks the limit price of an incoming order against the NBBO and BBO and rejects the order if the limit crosses a certain parameters.
Acceptable Quote Range: Protects orders and quotes from executing at levels too far away from an initial quote execution price.
Market Access Protection: Guards against duplicate orders as well as validates orders with cumulative volume checks.
Kill Switch: Provides participants with a GUI that enables them to request quote removals and/or order cancellations.
Rapid Fire: Removes BX Options Market Maker SQF quotes from the marketplace when certain pre-set percentage or volume thresholds are met.
Multi-Trigger Rapid Fire: Removes BX Options Market Maker SQF quotes in an option series in all underlying issues when a specified number of Rapid Fire events occur over a chosen interval.
Anti-Internalization or AIQ: Prevents BX Options Market Makers from trading against their own quote and order interest. Resting interest will be cancelled when an incoming quote or order entered on the opposite side of the market from the same market making firm.
Cancel on Disconnect (FIX and SQF connections): A loss of communication will automatically cancel all orders and open quotes on the affected port. Quotes will be cancelled across all client applications that are associated with the same market maker ID and underlying issues.
Through our primary data center, firms can access all eleven of Nasdaq's U.S. Markets via Direct Connection or Co-Location. Nasdaq also offers customers the ability to connect to our markets from key financial data centers outside our Carteret facility through our Point of Presence Service.
Specialized Quote Interface (SQF): Market makers provide liquidity using SQF, which allows market makers to supply up to 200 quotes in one message.
Financial Information eXchange (FIX): A vendor-neutral standard message protocol used for submitting orders to PHLX.
Clearing Trade Interface (CTI): The Options Clearing Trade Interface is a product that disseminates clearing trades, trade corrections, trade cancels and optional administrative messages.
Gain direct access to the full options data feed suite via multiple exchange venues—based on time, complexity, and uniformity. Through trader sentiment tools and aggregated trading activity indicators, market participants can analyze options trade and volume data, and create and test trading models and strategies.
Restricting an OCC clearing number and authorized member organization.
Restricting an OCC Clearing Number
- PHLX Rule 1037, ISE, GEMX, MRX Rules 707, and NOM and BX Options Rules Chapter VI Section 14 allow Clearing Members to request the Exchange restrict allowable usage of one or more of their OCC clearing numbers.
- To request a restriction on an OCC clearing number, a Clearing Member must submit a completed “Clearing Member Restriction Form” to the Exchange’s Membership Department.
- “Clearing Member Restriction Form” requests will be effective and systematically enforced ninety days after being received by the Exchange once the Exchange’s implementation date has occurred.
- Note, a clearing arrangement subject to a Letter of Guarantee automatically permits the Give-Up of a Restricted OCC Number by the member organization / Member that is party to the arrangement and no further written authorization is required.
Authorized Member Organization / Authorized Member
- A PHLX, ISE, GEMX, MRX, NOM, or BX Options member organization / Member desiring to Give-Up a Restricted OCC Number must become an Authorized Member Organization / Authorized Member.
- To become an Authorized Member Organization / Authorized Member, the Exchange requires written authorization, in the form of a completed “Clearing Member Restriction Form”, from the Clearing Member permitting the member organization / Member to Give-Up a Clearing Member’s Restricted OCC Number.
BX Options Strike Proliferation Proposal
BX is providing information regarding strike listings on its market. This information is intended to provide insight into strike proliferation on the options markets.
View the data and learn more here.
BX Options Factsheet Download BX Options Factsheet
BX Options Port Request Form Download BX Options Port Request Form
Order Risk Management Download Order Risk Management
PHLX, NOM & BX Market Maker Risk Management Download PHLX, NOM & BX Market Maker Risk Management
BX Options FAQs Download BX Options FAQs
PRISM FAQs Download PRISM FAQs
BX Options Top of Market (BX Top) View BX Options Top of Market (BX Top)
BX Options Depth of Market (BX Depth) View BX Options Depth of Market (BX Depth)
BX Options Glimpse View BX Options Glimpse
SoupBinTCP 4.1 Download SoupBinTCP 4.1
SoupBinTCP 3.0 Download SoupBinTCP 3.0
Specialized Quote Interface Specification v8.2a Download Specialized Quote Interface Specification v8.2a
Options Clearing Trade Interface (CTI) Specification 2.1 Download Options Clearing Trade Interface (CTI) Specification 2.1
BX Options FIX Specification v2.0d Download BX Options FIX Specification v2.0d
FIX Drop (BX Options) Specification v2.3e Download FIX Drop (BX Options) Specification v2.3e
BX Listed Options View BX Listed Options
BX Options System Settings Download BX Options System Settings
Clearing Member Restrictions Form Download Clearing Member Restrictions Form
Holiday & Trading Hours Download Holiday & Trading Hours
Minimum Quote Size Requirements Download Minimum Quote Size Requirements
Nasdaq List of Closing Transactions Download Nasdaq List of Closing Transactions
Nasdaq Report HQ Download Nasdaq Report HQ
Penny Program List Download Penny Program List
System Hours Download System Hours