Source: NASDAQ OMX Group
The Options Clearing Corporation (OCC) and the NASDAQ OMX Group, Inc. announced today that the NASDAQ Options Market has become an OCC participant exchange.
This follows the recent approval of NASDAQ Options Market's trading rules by the Securities and Exchange Commission. NASDAQ Options Market will begin operation today.
OCC, which operates under the jurisdiction of the SEC and the Commodity Futures Trading Commission, clears and guarantees the trades executed on all U.S. options exchanges. As a result of NASDAQ Options Market's affiliation with OCC, the standardized options contracts traded on there will be able to be offset against the same options contracts traded on other U.S. options markets, resulting in significant efficiencies for participating member firms.
"On behalf of NASDAQ OMX, we are delighted that The NASDAQ Options Market has officially become a member of the OCC, the world's largest equity derivatives clearing organization. The NASDAQ Options Market launched today and we look forward to growing our price/time priority options market. It was a pleasure working with the OCC throughout this process and we thank the OCC staff for its contributions," commented Adam Nunes, Vice President and Head of The NASDAQ Options Market.
"OCC is pleased to welcome The NASDAQ Options Market during this time of unprecedented growth in the U.S. options marketplace," said Wayne P. Luthringshausen, OCC Chairman and CEO. "As a participant exchange, The NASDAQ Options Market will be afforded the full range of state-of-the-art clearing services available to all of our exchanges."
The NASDAQ Options Market operates a fully automated, price/time priority market with an opportunity for price improvement that provides a level playing field to all participants. It also has the ability to provide a routing service to orders when trading is not present on the NASDAQ Options Market. NASDAQ OMX's offering will be the first options trading platform to offer true price/time priority. The NASDAQ Options Market will complement NASDAQ's acquisition of the Philadelphia Stock Exchange.