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.
Write to Jacob Bunge at jacob.bunge@dowjones.com