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Monday, June 9, 2008

Equity Trader Alert #2008 - 67
NASDAQ OMX Provides Update on NASDAQ OMX BX

Please Route To:

Head Traders; Technical Contacts; Compliance Officers; NASDAQ Vendor Technical Contacts

What you need to know:

  • As announced in Head Trader Alert #2008-039, The Nasdaq Stock Market, Inc. (now The NASDAQ OMX Group, Inc.) entered into a definitive agreement to acquire the Boston Stock Exchange (BSE), pending approval by the Securities and Exchange Commission (SEC).
  • Following the close of this acquisition, NASDAQ OMX plans to resume equity trading through the BSE and rename the exchange NASDAQ OMX BX (“BX”).
  • NASDAQ OMX is targeting August 1, 2008 to launch BX.1
  • Information regarding connectivity, testing and membership are available on the NASDAQ OMX BX page on the NASDAQ Trader website.

Who you should contact:

What is NASDAQ BX?

As announced in Head Trader Alert #2008-039, The Nasdaq Stock Market, Inc.® (now The NASDAQ OMX Group, Inc.SM) has entered into a definitive agreement to acquire the Boston Stock Exchange, pending approval by the Securities and Exchange Commission (SEC).

Following the close of the acquisition, NASDAQ OMX plans to rename the exchange “NASDAQ OMX BX” (“BX”) and will use it to offer a platform for trading U.S. equities — allowing for a separate Reg NMS protected quote.1

When will BX launch?

NASDAQ OMX is targeting Friday, August 1, 2008 to launch BX.1

What do I need to do to get connected?

If you currently connect to the NASDAQ data centers you may use your circuits to connect to BX, bandwidth permitting. You may also use the same Extranet or Direct Circuit connections to access BX that you currently use to access NASDAQ®.

You must get new BX access ports to post orders and to directly remove liquidity from BX. To order BX Ports, please complete and submit a Port Request Form.

Please see our Trading and Connectivity FAQs for additional information.

How will my trades clear?

Trades will clear on the RIO contract sheet. The counterparty will be an omnibus account. The clearing number for the account will be 0163 and the contra party will be "NQBX", a generic, anonymous MPID.

What do I have to do to become a member of BX?

All firms must submit a NASDAQ OMX BX Membership Agreement. Firms that are NASDAQ or FINRA members, but not currently members of the Boston Stock Exchange, must also submit a Short Form Application. Visit the NASDAQ OMX BX Membership page on the NASDAQ Trader® website for more information.

Will there be any testing opportunities?

Yes. Firms may test anytime during regular trading days. The BX system is currently available for order entry and execution testing. Weekend testing for BX will be available on the following days:

  • Saturday, June 14th
  • Saturday, July 12th
  • Saturday, July 19th
  • Saturday, July 26th

Please refer to Head Trader Alert #2008-040, for additional testing and registration information.

What type of market data will be available?

In conjunction with the launch of the new BX market center, NASDAQ OMX plans to introduce a proprietary data feed, NASDAQ OMX BX TotalView-ITCH (“BX TotalView”) that features:

  • Order level data with attribution in BX
  • Last sale data for BX

In addition, the consolidated quote and last sale data feeds (UQDF, UTDF, CQS and CTS) will represent the BX market as “B”.

BX TotalView is currently available for beta testing and for ordering. Please contact NASDAQ OMX Global Data Products at +1 301 978 5307.

Where can I get additional information?

1 Note: The availability of BX as a trading venue is subject to SEC approval of the acquisition, the closing of the acquisition and SEC approval of revised rules governing membership, member conduct and trading. Accordingly, the information provided in this HTA is subject to future modification.


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