2025-05588NoticeWallet

Nasdaq Clarifies Rebates for Special Options Trades

Published Date: 4/2/2025

Notice

Summary

Nasdaq PHLX is updating its pricing rules to clearly say that Floor Brokers get rebates for certain special trades called Qualified Contingent Crosses (QCCs). This change affects Floor Brokers working on the options trading floor and takes effect right away, making sure they get paid properly for these trades. No new fees or costs are added, just a clearer rule about who gets the rebates.

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Floor Brokers Named as QCC Rebate Recipients

The exchange will explicitly state in Options 7, Section 4 that rebates for qualifying Floor Qualified Contingent Cross (Floor QCC) Orders are paid to Floor Brokers. This change is a clarification of who receives the existing QCC rebates and takes effect upon the filing of the rule change.

Existing QCC Rebate Rates Apply to Floor QCCs

Phlx's existing QCC rebate schedule applies to qualifying Floor QCC Orders: baseline rebates of $0.12 (certain Customer/Professional contra-side) and $0.14 (Professional/Firm contra-side) per contract, with higher tier rebates of $0.17/$0.19 per contract if a member executes greater than 750,000 qualifying QCC contracts in a month, and further tiered rebates of $0.22/$0.27 per contract when (1) >750,000 qualifying QCC contracts, (2) >1,250,000 Floor Originated Strategy Executions in a month, and (3) at least 40% of that member's QCC executed contracts meet the specified contra-side composition.

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Key Dates

Effective Date
Published Date
3/20/2025
4/2/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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