PHLX, NOM, and BX Options have updated technical specifications, as noted below, to support new functionality including a Price Improvement Auction (PRISM) on BX Options, Order Exposure Alerts on NOM and BX Options, and Kill Switch functionality on PHLX, NOM, and BX Options. The specification updates support new functionalities which are subject to SEC approval.

PRISM Auction - BX Options:

BX Options has updated the following specifications to support the addition of a Price Improvement Auction (PRISM) whereby a buy and sell order may be submitted in one order message in order to initiate an auction at a ‘stop price’ and seek potential price improvement.

• FIX to Trade Options 1.3
• FIX Drop Specification V.2.3
• Clearing Trade Interface (CTI) V.1.3
• Specialized Quote Feed (SQF) V.6.4j
• BX Options Depth of Market V.1.1

Pending SEC approval, the Exchange anticipates PRISM being live in production in August 2015.

Order Exposure Alerts – NOM and BX Options:

NOM and BX Options have updated the following specifications to support the addition of Order Exposure Alerts. Order Exposure Alerts will be provided on NOM and BX Options when an order submitted over FIX becomes marketable against the ABBO and is not immediately executable on the Exchange.

• FIX to Trade Options 1.3
• FIX Drop Specification V.2.3
• Clearing Trade Interface (CTI) V.1.3
• Nasdaq ITCH to Trade Options (ITTO) V.3.02
• OUCH to Trade Options (OTTO) Drop V.1.1c
• BX Options Depth of Market V.1.1

Pending SEC approval, the Exchange anticipates Order Exposure Alerts to be live in production August 2015.

Kill Switch – PHLX, NOM, and BX Options:

PHLX, NOM, and BX Options have updated the following specifications to support the addition of an external Kill Switch. The Kill Switch will provide participants the ability to request all, or a portion of, Quote and/or Order interest to be cancelled on the Exchange and no additional interest to be accepted until the participant has verbally requested re-entry. Technical updates regarding the cancellation of Quotes were previously announced in Options Technical Alert #2014-7. The following specifications have been updated to support the Kill Switch feature relating to Orders submitted over the FIX protocol.

• FIX Specification and Application Manual 2.7 (PHLX)
• FIX to Trade Options 1.3 (NOM & BX Options)
• FIX Drop Specification V.2.3

Pending SEC approval, the Exchange anticipates the external Kill Switch to be live in production August 2015.