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Monday, March 31, 2025

Equity Trader Alert #2025 - 19
PSX Pricing Update Effective April 1, 2025

Category:

  • Pricing

Markets Impacted:

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Pending filing with the SEC, the following pricing change will be effective Tuesday, April 1, 2025 on PSX.

Discontinued rebate

The following rebate will be discontinued:

PSX Market Data Revenue ("MDR") Rebate:

 

1. A PSX Participant may receive a quarterly MDR rebate in proportion to the PSX Participant’s quoting of displayed orders in Tapes A and C securities from the previous calendar quarter (“MDR Rebate”) subject to meeting the requirements mentioned below:

• Quote* at the NBBO at least 25% of the time during Market Hours in an average number of securities (specified below) per day over the course of the quarter through the PSX Participant’s MPID:

 

Tape A

Tape C

At least 250 symbols

At least 300 symbols

 

 

 

 

 

*For purposes of this Section, a PSX Participant will be deemed to quote at the NBBO if the PSX Participant’s MPID has a displayed order of at least 100 shares in a security at either the national best bid or the national best offer or both the national best bid and offer.

 

2. MDR will be calculated separately for quotes in each Tape A and C security, for a total of two MDR pools. If the MDR received by PSX in any given pool exceeds the following thresholds in any given calendar quarter, 40% of such excess MDR will be payable to PSX Participants in proportion to their respective quoting of displayed orders in that pool.

 

Tape A

Tape C

$110,000

$200,000

 

 

 

 

 

3. A PSX Participant will not be paid an MDR Rebate in any calendar quarter in which the total MDR Rebate attributable to the PSX Participant is less than $500.

 

4. Please see the example below: 

  • PSX Actual Quoting revenue for Tape C = $350,000.
    • Excess Revenue = $350,000 less $200,000 = $150,000.
    • Amount to be shared with participants = $60,000 ($150,000*40%).
  • There are five PSX Participants (i.e., Participants A, B, C, D and E) that had eligible quote activity in Tape C securities in the previous calendar quarter. After calculating the Tape C quote credits for each Participant, the attributed MDR for each Participant would be as follows:

 

Participant

Tape C Quote Credits

Attributed MDR

A

24,000

$1,440

B

75,000

$4,500

C

201,000

$12,060

D

300,000

$18,000

E

400,000

$24,000

Total

1,000,000

$60,000
   

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