PHLX Fine-Tunes Options Rebates for Traders
Published Date: 1/20/2026
Notice
Summary
Nasdaq PHLX is updating its pricing rules to change how customers get rebates and how fees work for options listed on multiple exchanges. These changes affect traders using PHLX and take effect right away, potentially saving or costing them a bit more depending on their trading style. The goal? Keep things fair and clear while encouraging smart trading.
Analyzed Economic Effects
6 provisions identified: 2 benefits, 3 costs, 1 mixed.
Monthly Market Maker cap raised to $650,000
PHLX raises the Monthly Market Maker Cap on certain electronic Option Transaction Charges and QCC Transaction Fees from $500,000 to $650,000. The cap increase applies to Lead Market Makers and Market Makers for the specified charge categories.
New Tier 5 volume minimum of 0.50%
To get Tier 5 rebates, members or affiliated entities must have electronically-delivered and executed Non-Penny Customer simple volume plus Penny and Non-Penny Customer complex volume combined that represents more than 0.50% of all cleared customer volume at OCC in Multiply Listed Equity Options and ETPs. If they do not meet this 0.50% requirement, they will instead be paid according to the Tier 4 schedule.
New strategy execution rebate: $0.0025 per contract
PHLX will pay a $0.0025 rebate per contract for qualifying strategy executions (dividend, merger, short stock interest, reversal and conversion, jelly roll, box spread) when both buy and sell sides originate on the trading floor or as a Floor Qualified Contingent Cross. The Exchange caps these strategy rebates so any individual Lead Market Maker, Market Maker, Professional, Firm, or Broker-Dealer can earn no more than $25,000 per day in aggregate strategy rebates.
Customer rebate tier thresholds changed
PHLX changed the monthly percentage ranges you must reach to qualify for Customer Rebate Tiers. Tier 2 now covers above 0.60%–1.50% (was up to 1.30%), Tier 3 now covers above 1.50%–2.00% (was 1.30%–1.80%), and Tier 4 now covers above 2.00%–2.50% (was 1.80%–2.50%).
PIXL rebate reduced for Tier 4 (cap clarified)
PHLX will pay $0.13 per contract for Customer PIXL Orders that execute against a PIXL Initiating Order to member organizations that qualify for Tier 4 (changed from $0.14). Member organizations that qualify for Tier 5 will receive $0.14 per contract. The Exchange also clarifies that the 4,000-contract per order cap on PIXL rebates applies to member organizations as well.
Customers continue to pay no strategy fees
PHLX states that Customers will not qualify for the new strategy rebates, but Customers currently pay no Options Transaction Charges on strategy executions and will continue to pay no such charges. This treatment for Customers remains in place under the proposal.
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