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NASDAQ OMX to launch retail market for U.S. equity options

First Published 7th May 2012

New trading platform targets retail customer orders with access to liquidity, technology and functionality

New Orleans - The NASDAQ OMX Group has announced that it will launch NASDAQ OMX BX OptionsSM in June 2012, pending SEC approval. BX OptionsSM will provide retail customers and market makers with additional opportunities to provide liquidity, initially with a price/time trading system.

BX OptionsSM will include a hybrid allocation model, directed order flow for market participants and a new multi-faceted price improvement auction. Additionally, customers can utilise functions known to both NASDAQ OMX PHLX and the NASDAQ Options Market such as microsecond trading speeds, bulk quoting, rapid fire risk protection and low latency protocols. In order to facilitate connection for options trading customers, BX OptionsSM will leverage the same architecture, data center and INET technology as other NASDAQ OMX platforms.

Tom Wittman, Senior Vice President and Head of U.S. Options at NASDAQ OMX, said: "Our new platform will be a home for retail order flow that is transparent and it will complement PHLX and NOM, giving our customers a complete liquidity destination for options trading."

Eric Noll, Executive Vice President of Transaction Services U.S. and U.K. at NASDAQ OMX, said: "NASDAQ OMX will continue to strengthen its competitive offering in the derivatives space not only with cutting-edge trading tools that service the full cycle of a trade, but also with inventive market structure that provides true price discovery for an underserved segment of investors."