Nasdaq Listed Options?

Discussion in 'Options' started by torontoman, Dec 11, 2006.

  1. Does anyone know when the new changes will be implemented and how it affects option traders?

    Thanks in Advance,

  2. I have heard many different dates from different persons. Hopefully within the next 5-6 months.
    Its going to be really cool. Here is some jargon on how the changes will impact options traders:

    NASDAQ plans to operate a fully automated, price/time priority market with an opportunity for price improvement that provides a level playing field to all participants. The NASDAQ Options Market will be the first options trading platform to offer true price/time priority.

    more background:

    “The options market is on the verge of a transformative change, driven by the SEC's call for quotes in increments of pennies versus nickels,” said Chris Concannon, Executive Vice President of The Nasdaq Stock Market, Inc. “The move to decimalization will shift the competitive landscape toward market platforms that are equipped to handle extremely high volume with an equally high level of efficiency. The NASDAQ Options Market will leverage NASDAQ's fast, fair and transparent equities trading system that it acquired through the INET acquisition.”
  3. Are margin requirements going to change?
  4. MTE


    Yes, there're some proposals to switch to risk-based margining, similar to SPAN.
  5. An offer for 20 options in GOOG can give an error message of "not enough equity" even if you a few hundred thousand dollars in your account. Will the new margining solve this problem, especially when you haven't sold any part of the order yet?