2025-19184Notice

Nasdaq Tweaks Broker Rewards for Open Outcry Trades

Published Date: 10/1/2025

Notice

Summary

Nasdaq PHLX is updating its pricing rules for options trading, specifically changing the Floor Broker Incentive Program for open outcry trades. These changes kick in on October 1, 2025, and affect traders who use the trading floor. The update aims to keep things fair and encourage active trading without changing fees drastically.

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Higher per‑contract rebates for floor brokers

If you are a Floor Broker on Nasdaq PHLX's trading floor, the exchange is increasing rebates paid on qualifying open-outcry volume by $0.02 per contract, effective October 1, 2025. New per-contract rebate levels: when a Customer is on one side — Tier 1 (0–500,000) $0.04, Tier 2 (500,001–5,000,000) $0.07, Tier 3 (5,000,001–10,000,000) $0.09, Tier 4 (>10,000,000) $0.10; when Non-Customers are on both sides — Tier 1 $0.10, Tier 2 $0.18, Tier 3 $0.18, Tier 4 $0.22.

Certain trades stay excluded from rebates

Trades in specific categories will not receive these open‑outcry rebates. The Exchange explicitly excludes dividend, merger, short stock interest, reversal and conversion, jelly roll, and box spread strategy executions; Firm Floor Options Transactions for members executing facilitation orders in their own proprietary accounts (including Cabinet Options Transaction Charges); and Customer‑to‑Customer transactions from the Floor Broker rebate program.

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Key Dates

Published Date
10/1/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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