By Simon Miller
NASDAQ OMX's latest options market will use existing rules to speed up its introduction according to a filing with the Securities and Exchange Commission (SEC).
Called NASDAQ OMX BX Options, the market will be all-electronic with no physical trading floor, identical but seperate from the NASDAQ Options Market (NOM), and will be operated by NASDAQ subsidiary and national securities exchange BX.
In the filing with the SEC, NASDAQ said that BX Options will leverage the technology and infrastructure of both NOM and NASDAQ OMX PHLX.
"Accordingly, BX believes that it can compete effectively as an options market, recognising that there are nine options exchanges today competing vigorously," the filing said.
It continued: "Initially, BX Options will have the same market structure and rules as NOM, focusing on a price/time priority market. Over time, as the BX Options market secures more participants, it will introduce additional, innovative technology."
The filing said that in connection with its BX Options market, BX was proposing to adopt a series of rules based on the existing rules of NOM.
It continued: "BX will operate an electronic trading system developed to trade options that will provide for the electronic display and execution of orders in price/time priority without regard to the status of the entities that are entering orders."