FINRA Gives Nasdaq Indexes Nod for Overseas Options Pricing, Limits


Effective Thursday, June 27, FINRA-regulated trading firms will be able to calculate over-the-counter position limits on equity options on foreign listed securities using the Nasdaq Global Large Mid Cap Index for setting quote prices and position limits in equity options, as an alternative to the FTSE All-World Index -- previously the only index designated for this purpose by FINRA.

Officials say firms may be able to use higher position limits as a result of the Nasdaq index comprising a broader range of component securities.

By providing competition between index providers, the move may also lower the cost of index subscriptions for users, says John Jacobs, executive vice president and head of the Global Information Services division at Nasdaq OMX.

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