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Thursday, January 31, 2013

Equity Trader Alert #2013 - 8
NASDAQ Replaces Extended Hours Incentive Program, Effective February 1, 2013

Markets Impacted:

Contact Information:

What you need to know:

  • Effective February 1, 2013, pending filing with the SEC, NASDAQ will end the Extended Hours Incentive Program and launch the Routable Order Program.

What is NASDAQ changing regarding extended hours incentives?

Effective February 1, 2013, The NASDAQ Stock Market® (NASDAQ®) is replacing its Extended Hours Investor Program (EHIP) with the Routable Order Program (ROP), a similar program focused on recognizing the propensity of members representing retail customers to make use of exchange-provided routing strategies and pre- and post-market trading sessions, pending filing with the Securities and Exchange Commission (SEC).

To qualify for the ROP, an MPID must:

  • Add 35 million shares or more per day on average using the SCAN and/or LIST routing strategies.
  • Of the liquidity provided using SCAN and/or LIST strategies, at least 2 million shares per day on average must be provided before the open or after the close.

What will be the fees for MPIDs qualifying for the Routable Order Program?

With respect to SCAN and LIST orders, MPIDs qualifying for the ROP will be assessed the following fees or rebates:

Orders adding displayed liquidity Orders removing liquidity All other executions
Securities priced $1 or more per share $0.0037 rebate per share $0.0029 fee per share Standard pricing
Securities priced less than $1 per share $0.00003 rebate per share 0.3% of total dollar volume Standard pricing

Orders that qualify for fees and rebates under the ROP are not eligible to receive additional rebates under the ISP.

For additional information:


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