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Friday, January 27, 2012

Equity Trader Alert #2012 - 4
NASDAQ Introduces Take Fee Incentives in Tape B Securities and Updates Pricing Effective February 1, 2012

Markets Impacted:

Contact Information:

What you need to know:

  • Effective Wednesday, February 1, 2011, The NASDAQ Stock Market® (NASDAQ®) will:
    • Introduce two new volume tier discounts for removing liquidity in Tape B securities, pending filing with the Securities and Exchange Commission (SEC).
    • Update the rebate for the Pre-Market Investor Program (PMI), pending filing with the SEC.
    • Update pricing for the Weblink ACT product and CTCI ports.

How is Tape B pricing changing on February 1, 2011?

Effective Wednesday, February 1, 2012, NASDAQ will introduce two volume tier discounts for removing liquidity in Tape B securities. Member MPIDs can qualify for one of two discounted Tape B take rates by meeting both an add and remove monthly volume requirement:

Tape B Take Rate % of Tape B volume Removed % of Tape B volume Added
$0.0027 1.50% 0.50%
$0.0028 0.50% 0.25%
$0.0030 All others All others

What is changing in regard to Pre-Market Investor Program (PMI)?

Effective Wednesday, February 1, 2012, NASDAQ is updating the rebate for PMI-qualified MPIDs to $0.0002. Currently, PMI-qualified MPIDs earn an additional $0.0001 rebate per displayed added share priced above $1.00. All other elements of the program will remain the same.

What are the PMI Qualifications?

  • Member must submit a PMI application to designate an MPID as PMI-eligible (PMI is administered at the MPID-level)
  • PMI-designated MPID must add 2 million or more shares during pre-market hours daily (on average over the month)
  • PMI-designated MPID must maintain an Orders to Orders Executed ratio of 10:1 or less
  • PMI-designated MPID must maintain a ratio of executed liquidity adding volume to total volume of greater than 80%

How is Weblink ACT pricing changing?

Effective Wednesday, February 1, 2012, Weblink ACT pricing will be as follows:

Transactions per day, per month Fee
Up to 20 Transactions $225
Greater than 20 Transactions $425

A transaction is defined as an original trade entry, either on trade date or as-of transactions per month.

How is CTCI pricing changing?

Effective Wednesday, February 1, 2012, CTCI stations will be $600 per station, per month.

Where can I find additional information?


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