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Nasdaq Options Market

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

Features

  • 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 OTTO, 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.

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.

Risk Management

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

FeaturesDescription
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 RangeProtects orders and quotes from executing at levels too far away from an initial quote execution price.
Market Access ProtectionGuards against duplicate orders as well as validates orders with cumulative volume checks.
Kill SwitchProvides participants with a GUI that enables them to request quote removals and/or order cancellations.
Rapid FireRemoves NOM Market Maker SQF quotes and/or OTTO orders from the marketplace when certain pre-set percentage or volume thresholds are met.
Multi-Trigger Rapid FireRemoves NOM Market Maker SQF quotes and OTTO 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 AIQPrevents 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 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):NOM Market Makers provide liquidity using SQF, which allows market makers to supply up to 200 quotes in one message.
  • Financial Information eXchange (FIX):Is a vendor-neutral standard message protocol used for submitting orders to NOM.
  • OUCH to Trade Options (OTTO):This proprietary protocol allows subscribers to efficiently enter options orders into and receive executions from Nasdaq. Orders are treated as quotes for NOM Market Makers.
  • Clearing Trade Interface (CTI):The Options Clearing Trade Interface is a product that disseminates clearing trades, trade corrections, trade cancels and optional administrative messages.

If you have questions, contact Nasdaq Subscriber Services or call +1 212 231 5180.


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.

If you have questions, please contact Nasdaq Market Data Sales.

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