Nasdaq Updates Options Rebates and Trading Limits
Published Date: 8/25/2025
Notice
Summary
Nasdaq PHLX is updating its options trading rules to change how customer rebates work and adjust limits on trading strategies. These changes affect traders using the Exchange’s options platform and take effect immediately, aiming to keep things fair and efficient. No big cost changes were announced, but traders should watch for how these tweaks might impact their trading plans.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Strategy transaction fees eliminated for members
Phlx will reduce all daily strategy caps to $0.00 so no transaction charge will be paid on qualifying strategy executions, and it will eliminate the existing $65,000 monthly strategy cap. This change (filed August 11, 2025 and effective immediately) applies to Lead Market Makers, Market Makers, Professionals, Firms and Broker-Dealers for the listed strategy types (dividend, merger, short stock interest, reversal and conversion, jelly roll, and box spread).
Customer rebate tier thresholds changed
Phlx changed its Customer Rebate tier percentage thresholds: Tier 2 is now above 0.60% to 1.30% (was to 1.10%), Tier 3 is now above 1.30% to 1.80% (was 1.10% to 1.60%), and Tier 4 is now above 1.80% to 2.50% (was 1.60% to 2.50%). The rule filing was made on August 11, 2025 and is effective immediately; the Exchange notes some members who previously qualified for a higher tier may now qualify for a lower tier under these new thresholds.
Customers continue to pay no strategy fees
The Exchange states that Customers pay no fees on strategy transactions today and that Customers were not subject to the strategy caps; that status remains under the proposal. The filing was submitted August 11, 2025 and is effective immediately.
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