Effective immediately, Nasdaq PHLX (PHLX) has received approval to amend Rule 1019, entitled “Acceptance of Bid or Offer”. This amendment allows PHLX to adopt functionality which is designed to assist PHLX members and member organizations in the event that they lose connectivity with their assigned Financial Information Exchange (FIX) or Specialized Quote Feed (SQF) Ports.

When a FIX or SQF port detects the loss of communication with a member’s Client Application because the Exchange’s server does not receive a Heartbeat message for a certain period of time, the Exchange will automatically logoff the member’s affected Client Application.

On SQF, the Exchange has a default time period of 15 seconds which will trigger a disconnect from the Exchange. If an SQF port is disconnected and quotes for a given underlying have been sent over the disconnected port for that Market Maker ID then all open quotes associated with that Market Maker ID and underlying will be cancelled immediately across all ports.

On FIX, the Exchange has a default time period of 30 seconds which will trigger a disconnect from the Exchange. If a FIX port is disconnected the removal of orders is an optional feature.

The SQF default disconnect time period of 15 seconds and the FIX default disconnect time period of 30 seconds are configurable. Any Participant that wishes to change their default disconnect time period for either their SQF or FIX ports may contact Subscriber Services.