By Jacob Bunge
Market regulators have cleared the way for Nasdaq OMX Group Inc. (NDAQ) to launch what will be the exchange group's third U.S. stock-options market, the company told traders Tuesday.
The planned BX Options exchange will begin trading options contracts on five securities Friday, June 29, according to a notice sent by Nasdaq OMX.
Nasdaq OMX intends to position the new venue to capture more business from retail brokerage firms by paying small rebates for their orders, while charging fees to market-makers that supply prices and trade on those orders.
Nasdaq OMX BX Options will use the options-trading license from the company's 2007 acquisition of the former Boston Stock Exchange, which became available last month when the BOX Options Exchange won approval from the Securities & Exchange Commission for its own license. BOX operated under Nasdaq OMX's regulatory jurisdiction until the SEC approved rules that let it function on its own.
The new BX market will initiate trading in options linked to Alcoa Inc., (AA), Citigroup Inc. (C), Intel Corp. (INTC), Micron Technology Inc. (MU) and Patriot Coal Corp. (PCX).
July 10, options on another 50 securities will be introduced, according to Nasdaq OMX, and July 17 the BX platform will list the remainder of options contracts priced in one-penny increments.
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