NASDAQ OMX BX Options

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NASDAQ OMX BX Options
Founded 2012
Key People Tom Wittman, Head of U.S. Options at NASDAQ OMX
Products Stock options market

NASDAQ OMX BX Options (BX Options) is the newest and third U.S. stock-options market of the NASDAQ OMX exchange group. BX Options is a retail order flow focused options market and is supported by many of the same market makers who support Nasdaq's other options exchanges, NASDAQ Options Market (NOM), and Nasdaq PHLX.[1]

The market intends to capture more business from retail brokerage firms by paying small rebates for their orders, while charging fees to market-makers that supply prices and trade on those orders. [2]

On June 29, 2012, it was announced that BX Options had become an OCC participant exchange and would begin operations that day. [3] The addition of BX Options to the NASDAQ OMX brought the total number of options markets in the U.S. to 10.

History

BX Options uses the options-trading license from NASDAQ OMX's acquisition of the former Boston Stock Exchange in 2009. The license became available in June 2012 when the Securities & Exchange Commission (SEC) gave approval to the BOX Options Exchange for its own license.

Products and Services

The exchange offers the same SQF, FIX, and CTI low latency INET technology architecture currently used on NOM. BX Options initiated trading in options linked to Alcoa Inc., Citigroup Inc., Intel Corp., Micron Technology Inc. and Patriot Coal Corp. On July 10, 2012, options on another 50 securities will be introduced and on July 17, 2012, the remaining options contracts will be listed priced in one-penny increments.

BX Options membership process is identical to current practices on the NASDAQ Stock Market and NOM.

Key People

References

  1. BX Options Overview. Nasdaq.
  2. Nasdaq OMX Wins SEC Approval for New BX Options Exchange. Nasdaq.
  3. NASDAQ OMX BX Options Options Exchange Joins. MondoVisione.