Direct Edge Trading Notice #12-53: New Retail Order Designation On EDGX

EDGX Exchange, Inc. (EDGX^®) will introduce a new order designation, to be called “Retail Order”, for Members that submit orders to EDGX on behalf of their retail customers.  This new designation will enable Members to identify orders as Retail: (i) if they meet a pre-defined set of criteria, as described below, and (ii) submit a signed attestation that they have instituted policies and procedures reasonably designed to ensure that any orders they designate as Retail Orders will satisfy such criteria.

Retail Definition

To qualify as a “Retail Order”, an order must meet all of the following criteria: 

1)    Must be an agency order that originates from a natural person; 
2)    Must be submitted by a Member with no change to the terms of the order; and 
3)    Cannot originate from a trading algorithm or any other computerized methodology. 

A Member that wishes to designate orders as Retail Orders will be required to furnish an attestation to Direct Edge Member Services in advance.  The Attestation Form can be obtained from the Member Documents section of the Direct Edge website. 

Technical Details

The Retail Order designation will be available via the FIX protocol only. To designate an order as Retail, enter “R” in Custom Tag 9211 (CustomerType).

New Liquidity Flags

EDGX will introduce two new Liquidity Flags to support Retail Orders:

• ZA – Retail Order – Adds Liquidity (All Tapes)
• ZR – Retail Order – Removes Liquidity (All Tapes)

Affected Flags

Timing

EDGX anticipates launching the Retail Order designation in December, subject to filing with the Securities and Exchange Commission.  We will announce pricing for Retail Orders in the coming weeks.

More Information 

• To begin designating Retail Orders, complete and submit the Attestation Form toDirect Edge Member Services.