Nasdaq PHLX LLC Amends Pricing Schedule for Customer Rebates and Options Fees
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The PHLX exchange has updated its pricing schedule to adjust the percentage thresholds needed for receiving higher customer rebates. This change is expected to encourage more trading activity with the exchange. Additionally, the exchange will now apply marketing fees to both sides of orders in certain auction scenarios, removing a previously existing exemption. These amendments could impact how market participants execute trades and manage their costs.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Adjusted percentage thresholds for customer rebate tiers
- Removed exemption from marketing fees on contra side orders in complex auctions
- Encouragement of increased order flow to PHLX
Obligations
What this law requires
Members must adjust their trading strategies to meet the revised percentage thresholds to qualify for Tier 4 (above 2.00%-2.75%) and Tier 5 (above 2.75%) in the Customer Rebate Program.
Members must account for the new Marketing Fees on both the originating and contra side orders in all transactions resulting from an Exposure Complex Auction.
Members must ensure that they assess their total customer volume in Multiply Listed Options monthly to accurately calculate the tiered rebates according to the new thresholds.