The NBBO Offset PegSM is a new order type on the EDGA ExchangeSM (EDGA®) and EDGX ExchangeSM (EDGX®) designed to help Direct Edge Market Makers meet their minimum quoting obligations. These orders fluctuate with the market and re-price as necessary while providing Members with full control over order origination and order marking.
The NBBO Offset Peg will function similar to existing Primary Pegged Orders but will have an offset automatically applied to it. The offset for these orders will be initially set at 8%, 20%, 28% or 30% away from the National Best Bid and Offer (NBBO) depending on whether the symbol is a Tier 1 security, Tier 2 security, the time of day, and whether the security trades at/above or below $1.00. NBBO Offset Peg orders will be adjusted as necessary if a change to the NBBO puts the order more than 1.5% away or 1% closer to the NBB (for buys) or NBO (for sells). Refer to the NBBO Offset Peg Fact Sheet for Tier definitions and additional details.
The NBBO Offset Peg will be available effective Monday, July 29, 2013 on EDGA and effective Monday, August 5, 2013 on EDGX.
Order Entry Details
To enter an NBBO Offset Peg order via FIX, users must enter the following:
- Tag 18 (ExecInst) = N (NBBO Offset Peg)
- Tag 40 (OrdType) = Pegged
- Tag 9206 (ExtedHrsEligible) = N (Regular Session Only (Default) )
- Tag 9104 (DisplayInstruction) = Y (Displayed) or A (Displayed with Attribution)
To enter an NBBO Offset Peg order via EDGE XPRS®, use must enter the following:
- Special Order Type = N (NBBO Offset Peg)
- Extended Hrs Eligible = R (Regular Session Only)
- Display = Y (Displayed) or A (Displayed with Attribution)
More Information
- Refer to the NBBO Offset Peg Fact Sheet.