Nasdaq BX Ouch to Trade Protocol


On Feb. 15, Nasdaq BX proposed new ouch to trade options protocol.


  • Nasdaq BX proposed to adopt new ouch to trade options (OTTO) order entry protocol.
  • Proposed Protocol
  • The proposed new OTTO protocol is identical to the OTTO protocol offered today on three Nasdaq affiliated exchanges, Nasdaq ISE, Nasdaq GEMX and Nasdaq MRX.
  • OTTO would allow participants and sponsored customers to connect, send, and receive messages related to orders, auction orders, and auction responses to the exchange.
  • Features to include options symbol directory message, system event messages, trading action messages, execution messages, order messages, risk protection triggers
  • In addition, auction notifications, auction responses, post trade allocation messages.
  • Participants may elect to enter their orders through FIX, OTTO, or both protocols.
  • With offering OTTO, exchange proposes to amend other rules within Options 3.
  • Amends Nasdaq BX Options 3, Section 5, Types of orders and quote protocols, that describes the immediate-or-cancel (IOC) order may be entered through FIX or SQF.
  • Also, Nasdaq BX Options 3, Section 8, Options opening process to add the opening process cancel timer to the OTTO protocol as well to rule text language in paragraph.
  • In addition, Sections 12, 17 to clarify customer crossing orders, kill switch at options.
  • Consultation
  • Comments on proposed rule changes due 21 days from publication in federal register.
  • Feb. 26, 2024 SEC Approval
  • On Feb. 26, 2024, SEC issued notice of filing, approval with immediate effectiveness.
  • Feb. 27, 2024 Nasdaq OUCH 5.0
  • On Feb. 27, 2024, Nasdaq issued Equity trader alert #2024-16, to report Nasdaq BX, Nasdaq PSX to introduce ability to enter managed orders through OUCH 5.0 on Apr. 8.
  • Introduced for reserves, pegging, discretion, TradeNow, market maker peg features.
  • Noted no changes to managed orders entered via RASHport or INET FIX protocol.
  • Mar. 1, 2024 Fed Reg Publication
  • On Mar. 1, 2024, SEC published notice of Nasdaq BX filing, approval in federal register.
  • Mar. 22, 2024 SEC Approval
  • On Mar. 22, 2024, SEC approved BX proposal to adopt OTTO, for immediate effect.
  • On Mar. 19, 2024, Nasdaq BX filed new proposal to replace initial filing BX-2024-006.
  • Mar. 26, 2024 Nasdaq Trader Alert
  • On Mar. 26, 2024, Nasdaq issued Equity trader alert #2024 - 20 re OUCH 5.0 protocol.
  • Functionality will now be rolled out in Q3 2024, with the exact dates to be announced.
  • Mar. 28, 2024 SEC Fed Reg Approval
  • On Mar. 28, 2024, SEC published approval of Nasdaq BX proposal in federal register.
  • May 8, 2024 Nasdaq BX Proposal
  • On May 8, 2024, Nasdaq BX proposed to adopt new OTTO protocol, establish pricing.
  • Proposed text in Exhibit 5 on p. 51 identical to previous proposal, except for pricing.
  • Comments on proposed rule changes due 21 days from publication in federal register.
  • May 22, 2024 SEC Approval
  • On May 22, 2024, SEC approved Nasdaq BX proposal, with immediate effectiveness.
  • Immediate effect given per 17 CFR 240.19b-4, since changes were non-substantial.
  • Exchange will implement rule change by Dec. 20, 2025, and announce operative date.
  • May 29, 2024 Fed Reg Approval
  • On May 29, 2024, SEC published notice of Nasdaq BX approval in the federal register.
  • Jun. 2024 Nasdaq BX Refiled Proposal
  • On Jun. 26, 2024, Nasdaq BX refiled proposal under new file# to adopt OTTO protocol.
  • Proposed text in Exhibit 5 on p. 51 identical to previous proposal, except for pricing.
  • Comments on proposed rule changes due 21 days from publication in federal register.
  • Jul. 9, 2024 SEC Approval, Nasdaq Functionality
  • On Jul. 9, 2024, SEC issued notice of filing and approval for immediate effectiveness.
  • On Jul. 8, 2024, Nasdaq, Nasdaq BX and Nasdaq PSX reported new ability for customers to send managed orders via the OUCH 5.0 protocol beginning Jul. 29, 2024.
  • Jul. 15, 2024 Fed Reg Approval
  • On Jul. 15, 2024, SEC published approval of Nasdaq BX rule change in federal register.

Regulators Nasdaq; Nasdaq BX; Nasdaq PSX
Entity Types B/D; Exch
Reference 89 FR 57485, 7/15/2024; SEC RF 34-100479, 7/9/2024; Al 2024-41, 7/8/2024; RF BX-2024-019, 6/26/2024; 89 FR 46493, 5/29/2024; SEC RF 34-100211, 5/22/2024; RF BX-2024-016, 5/8/2024; 89 FR 21618, 3/28/2024; Al #2024-20, 3/26/2024; SEC RF 34-99840, 3/22/2024; RF BX-2024-011, 3/19/2024; 89 FR 15242, 3/1/2024; Nt #2024-16, 2/27/2024; SEC RF 34-99598, 2/26/2024; RF BX-2024-006, 2/15/2024; Citation: Nasdaq BX Options 3; 17 CFR 240.19b-4;
Functions Compliance; Legal; Operations; Risk; Trading
Countries United States of America
Category
State
Products Derivatives; Futures; Securities
Regions Am
Rule Type Final
Rule Date 2/15/2024
Effective Date 7/29/2024
Rule Id 201351
Linked to N/A
Reg. Last Update 7/15/2024
Report Section US Investment

Last substantive update on 07/15/2024