Nasdaq PHLX (PHLX)

is a full service options trading platform delivering cutting-edge electronic and floor-based trading.


Nasdaq PHLX (PHLX) offers a combination of cutting-edge electronic and floor-based trading delivering a true full service options trading platform. 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. PHLX follows a classic or traditional pricing model where customers receive marketing fees/rebates and non-customers pay fees.

PHLX 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.

Trading Floor: Offers high-touch, manual handling of specialty and Complex Orders, strategy trades, and non-electronic trades.

Price Improvement on XL (PIXL): PIXL allows a member to submit a two-sided Initiating Order into a PIXL process soliciting price improvement. PHLX allows all participants to respond to the auction and offers a “No-Worse-Than” price designation.

Flexible Routing Strategies: By utilizing FIND, SRCH (Search) and DNR (Do Not Route), participants can control how their orders are routed.

Complex Order System: Automates the process for handling and executing option orders of up to six legs, or five-legged options and one stock component.

Implied Orders: Enhances PHLX’s Complex Order Book by enabling interaction of multi-legged orders with the regular order book. This functionality tightens spreads on PHLX’s Simple Order Book, resulting in better executions for multi-legged orders and Simple Orders.

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.

Floor Brokers and Specialists: Are available on PHLX.

Order Types: A full suite of auction and crossing orders are available on PHLX.

PHLX Complex Orders

The PHLX Complex Order permits the execution of multi-leg option orders and stock-tied orders. Operating on the high-speed PHLX XL trading platform, the PHLX Complex Order system enhances electronic execution possibilities for Complex Orders, providing spread price protection and the potential for price improvement.


- Leg into our Simple Order Book with all components receiving simultaneous, instant execution

- Flexible spreads: up to 5 option legs with stock, or 6 option legs

- High speed execution

- Opportunity for price improvement in the Complex Order Live Auction (COLA)

- Do Not Auction (DNA) orders bypass auctions for faster execution against resting Complex Orders or the Simple Order Book


- Trade multi-leg option spreads or stock tied orders

- Complex Auction (COLA) offering opportunity for price improvement prior to execution

- Do Not Auction (DNA) will bypass the COLA providing immediate access to Complex Order Book or Simple Order market liquidity

- Orders may be entered as market or limit orders in penny increments

- Customer and non-market maker broker-dealer orders may be submitted as day, GTC, and IOC Orders

- PHLX market makers and non-PHLX market maker orders may be submitted as IOC or day only Orders and will not initiate an auction process

- Riskless stock-tied order handling with stock reporting directly to ACT

- Real-time order information available via TOPO Plus Orders data product

Stock-Tied Order Submission:

In order to submit Complex Orders with a stock component, firms must have proper paperwork and authorization in place:

  • PHLX Member Firms:

PHLX member firms should notify Nasdaq Membership of the proper stock clearance for each PHLX house account by filling out the PHLX Complex Order with Stock Authorization Form.

Firms are required to have a Uniform Service Bureau/Executing Broker Agreement (AGU) with Nasdaq Execution Services (NES) in order to trade Complex Order strategies containing a stock component.

- Under this arrangement, NES will report the stock leg of the Complex Order directly in the Over-the-Counter (OTC) Market via ACT. NES will submit two additional no-tape records to ACT for clearance.

  • Non-PHLX or Finra Members:

Firms who are not members of FINRA or Nasdaq, with no access to ACT via their clearing broker-dealer, must have their clearing broker submit a QSR via DTCC portal with NES.

- Under this arrangement, NES will lock firms in for clearance directly with the National Securities Clearing Corporation (NSCC).

A valid Market Participant Identifier (MPID) is required to clear the stock leg of a Complex Order. Firms that do not currently have an assigned MPID should submit the MPID Request Form.

PHLX Products

PHLX offers options trading on thousands of underlying equity, ETF, index, and FX products. Our unique market structure and technology fosters deep and liquid markets with competitive prices.

- Equity & ETF Options

- Quarterly Options

- Weekly Options

- FLEX® Options

- FX Options

- Index Options

- Nasdaq-100 Index® Options (NDX and NDXP)

PHLX Listed Options

Risk Management

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

Complex Strategy Price Protection (SPP): Prevents certain Complex Order strategies from trading at prices outside of pre-set standard limits.

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 certain parameters.

Acceptable Complex Execution Parameter (ACE): Defines a price range outside of which a Complex Order will not be allowed to be executed.

Acceptable Trade 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 PHLX market maker quotes from the marketplace when certain pre-set percentage or volume thresholds are met.

Multi-Trigger Rapid Fire: 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.

Anti-Internalization or AIQ: Prevents PHLX 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.

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.

Specifications and Resource Hub
Specifications and Resource Hub
All the specifications and regulatory resources you need. All in one place.
Close-up of Falcon 9 rocket engine exhaust
Specifications and Resource Hub
All the specifications and regulatory resources you need. All in one place.
Specifications and Resource Hub
All the specifications and regulatory resources you need. All in one place.

Resource Center

Contact Us

PHLX Floor Memos 2021- 2022

PHLX Floor Memos 2017-2020

Envision a Future – Fueled by Innovation, Technology and Expertise.
Now, let’s get there. Select below.