Nasdaq MRX (MRX) Options Exchange

Comprehensive risk management features are built into MRX’s trading technology and include the following protections:

• Market-Wide Speed Bump: Triggered based on a value, which is defined as the number of curtailment events within a specified time period across the entire market. Value defined by the Market Maker and implemented by Market Operations-
• Price Limit Check: Simple Orders entered through the exchange BBO by the greater of $1.00 or 1% during the regular market trading state are rejected.
• Cancel on Disconnect (FIX and DTI connections): Cancels all orders open in the market on disconnect.
• Vertical Spread Check: Vertical spreads entered with a negative limit price will be rejected.
• Spread Trade Through Limit: A spread will not trade through the NBBO by more than $0.05 per leg of the complex strategy.

Restricting an OCC clearing number and authorized member organization.

Restricting an OCC Clearing Number:

• PHLX Rule 1037, ISE, GEMX, MRX Rules 707, and NOM and NTX Options Rules Chapter VI Section 14 allow Clearing Members to request the Exchange restrict allowable usage of one or more of their OCC clearing numbers.
• To request a restriction on an OCC clearing number, a Clearing Member must submit a completed “Clearing Member Restriction Form” to the Exchange’s Membership Department: membership@nasdaq.com.
• “Clearing Member Restriction Form” requests will be effective and systematically enforced ninety days after being received by the Exchange once the Exchange’s implementation date has occurred.
• Note, a clearing arrangement subject to a Letter of Guarantee automatically permits the Give-Up of a Restricted OCC Number by the member organization / Member that is party to the arrangement and no further written authorization is required.

Authorized Member Organization / Authorized Member:

• A PHLX, ISE, GEMX, MRX, NOM, or NTX Options member organization / Member desiring to Give-Up a Restricted OCC Number must become an Authorized Member Organization / Authorized Member.
• To become an Authorized Member Organization / Authorized Member, the Exchange requires written authorization, in the form of a completed “Clearing Member Restriction Form”, from the Clearing Member permitting the member organization / Member to Give-Up a Clearing Member’s Restricted OCC Number.