Global exchange group Nasdaq OMX will launch a third US equity trading platform in the second half of 2010 using the licence obtained from its 2007 acquisition of the Philadelphia Stock Exchange.
Trades on the new platform will be executed according to price/size priority, as opposed to the price/time priority model used on Nasdaq OMX’s two existing US equity platforms, the Nasdaq Stock Market and Nasdaq OMX BX. According to Nasdaq OMX, execution according to price/size priority is not available on any other US equity trading platform.
Like Nasdaq OMX’s other trading platforms, the new US equity exchange will run on INET technology.
“Nasdaq OMX is pleased to continue its tradition of offering customers additional choices that will help supplement their various trading strategies. Based on feedback from key customers we decided to announce the launch of this trading platform that offers a new competitive equity market structure model,” said Eric Noll, executive vice president, Nasdaq OMX Group, in a statement. “Furthermore, we are happy to extend one of the many assets of our acquisition of The Philadelphia Stock Exchange, yet again, to provide the benefits to our equity trading customers.”
Nasdaq OMX launched Nasdaq OMX BX, its second US equities platform, in January this year, using the equities licence from its acquisition of the Boston Stock Exchange in 2008. BX offers a different pricing structure from the Nasdaq Stock Market, rebating liquidity takers $0.0001 and charging liquidity providers $0.0003.
The group also operates two US options exchanges: the Nasdaq Options Market and Nasdaq OMX PHLX, formerly the Philadelphia Stock Exchange’s options market.