Nasdaq BX Options (BX)

Geared towards retail order flow, Nasdaq BX Options (BX Options) is accessible using existing Nasdaq connectivity options.

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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.

BX Features

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 Products

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

 

BX Listed Options

Risk Management

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.

Connectivity

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.

Trading Protocols:

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.

Market Data

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.

Regulatory, Fees, and Customer Tools

Review all pertinent information to properly leverage the exchange.

Authorized Give-Up

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.

Additional Features

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