Nasdaq fiddles with penny stock options rebates
Published Date: 8/14/2026
Notice
Summary
Nasdaq is changing how it pays some market makers who trade penny stocks on its options market. Starting August 3, 2026, the rules to get the highest rebate for adding trades will be a bit different, aiming to keep things fair and competitive. This update mainly affects market makers and could impact their earnings from trading fees.
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Easier Tier 5 Rebate for NOM Market Makers
If you are a Nasdaq Options Market (NOM) Market Maker, the monthly volume threshold to qualify for the Tier 5 rebate for adding liquidity in Penny Symbols is lowered from 1.25% to 0.85% of total industry customer equity and ETF option average daily volume (ADV) per day in a month, effective August 3, 2026. Tier 5 pays $0.45 per contract (Tier 4 pays $0.32), so more NOM Market Makers could earn the higher $0.45 per-contract rebate.
More Liquidity Available to Traders
The Exchange says lowering the Tier 5 threshold to 0.85% is intended to incentivize NOM Market Makers to add more liquidity in Penny Symbols, which will allow other market participants to interact with that additional liquidity starting August 3, 2026. If you hold investments, this may mean more quotes and potential trading interest on the Nasdaq options market.
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