Nasdaq GEMX (GEMX)

is designed to attract liquidity and offer price improvement opportunities.

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Nasdaq GEMX (GEMX) was designed to attract liquidity and offer price improvement opportunities. Unique among maker/taker exchanges, GEMX offers Market Makers, preferenced orders and pro-rata allocations. GEMX is a traditional maker/taker exchange offering rebates for posting, fees for removing and a flat pricing structure for PIMs

GEMX Features

Part of the ISE family, leverages these features for an enhanced retail experience.

Price Improvement: GEMX provides a low, flat pricing structure for contra side and responses to PIM orders to maximize price improvement.

Routing Strategies: Orders can be marked with the option of Flash and Route, Flash and Do Not Route (DNR), and do not Flash do not Route.

Full Suite of Auction and Crossing Orders: GEMX offers a price improvement mechanism (PIM), facilitation, solicitation, and Qualified Contingent Cross (QCC) order types.

High-Speed Automated Opening: Provides access to additional liquidity and superior execution quality by limiting the range of allowable opening prices and allowing layered opening sweeps.

GEMX Products

GEMX 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

- Nasdaq-100® Index Options product suite (NDX)

Risk Management

Comprehensive risk management features are built into Nasdaq’s trading technology and include the following protections on GEMX.

Anti-Internalization or AIQ: Prevents 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.

Price Reasonability Check: Checks the limit price of an incoming order against the IBBO and rejects if the limit crosses a set threshold.

Acceptable Trade Range: Protects orders and quotes from executing at levels too far away from an initial quote execution price.

Market Wide Risk Protection: Provides members with the ability to set thresholds for order entry and execution rate protections.

Market Order Spread protection: Rejects the market order it the market order is received and the NBBO is wider than a configurable threshold.

Order Kill Switch: Allows Members to cancel all orders (not quotes) and block the ability to enter new orders.

Rapid Fire: Removes Market Maker SQF quotes and/or OTTO orders from the marketplace when certain thresholds are met.

Market Wide Speed Bump: Removes Market Maker SQF quotes and OTTO orders in all underlying symbols on the Exchange when a specified number of Rapid Fire events occur over a chosen interval.

Cross-Market Wide Speed Bump: Market Wide Speed Bump can be applied across ISE and GEMX exchanges.

Cancel on Disconnect (FIX, OTTO and SQF connections): Cancels all orders/quotes on the affected port as soon as disconnect is detected as well as any matching underlying/FirmID combinations entered on other ports.          

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.

OUCH to Trade Options (OTTO): This proprietary protocol, based on OUCH technology, provides customers with a fast and efficient protocol allowing subscribers to efficiently enter options orders into and receive executions from Nasdaq.

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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