Nasdaq Options Market (NOM)

is an all-electronic, price/time priority trading system running on Nasdaq's high-speed INET technology.

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NOM accepts a diverse set of order types for ultimate flexibility while offering price improvement opportunities. Liquidity on NOM is provided by market makers as well as other participants and is both order and quote based. NOM is a traditional maker/taker exchange offering rebates for posting and fees for removing.

NOM Features

Utilizing a customer priority, pro rata allocation model, PHLX ensures fast and efficient executions for Complex and Simple Orders while operating on our performance-driven INET technology.

Anonymous Trading: Provides access to a level playing field – whether quotes are the results of orders or market maker quotations – to customers, market makers, firms, and broker dealers.

Price/Time Exchange Model: Priority set on first come first serve basis.

Price Improvement: NOM accepts orders in penny increments in all series, which are displayed at the allowable quoting increment. NOM provides automatic and instantaneous price improvement to incoming orders.

Varied Routing Strategies: All market participants may take advantage of NOM's routing capabilities to meet customer demand, including the ability to check the NOM Order Book for Price Improving Orders before routing to another exchange.

Quoting: In addition to SQF, NOM market makers can also submit orders through QUO (previously OTTO 1.4d), which orders will be treated as quotes.

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.

NOM Products

NOM 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

 

NOM Listed Options

Risk Management

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

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 NOM Market Maker SQF quotes and/or QUO (previously OTTO 1.4d) orders from the marketplace when certain pre-set percentage or volume thresholds are met.

Multi-Trigger Rapid Fire: Removes NOM Market Maker SQF quotes and QUO (previously OTTO 1.4d) orders 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 NOM 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, OTTO, QUO (previously OTTO 1.4d) 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 NOM.

Quote Using Orders (QUO): This proprietary protocol allows market maker participants to efficiently enter options orders into the NOM market and receive executions from Nasdaq. Orders are treated as quotes and count toward quoting obligations over QUO.

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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