Pending rule changes with the Securities and Exchange Commission, Nasdaq PHLX LLC (Phlx), Nasdaq BX, Inc. (BX Options), Nasdaq ISE, LLC (ISE), Nasdaq GEMX, LLC (GEMX), and Nasdaq MRX, LLC (MRX) will amend the manner in which quoting obligations are computed. The proposed rule changes would specifically amend the calculation of quoting obligations so that Market Maker obligations are calculated separately from obligations of Lead Market Makers. The exchanges would consider compliance with the respective 90% and 60% quoting requirements by considering quotes associated with Lead Market Maker badges for the 90% requirement and quotes associated with Market Maker badges for the 60% requirement.

As of August 2, 2021, quotes submitted through the Specialized Quote Feed interface, utilizing badges assigned to a Lead Market Maker, will be counted toward the requirement to provide two-sided quotations in 90% of the cumulative number of seconds, or such higher percentage as the exchange may announce. Quotes submitted through the Specialized Quote Feed interface, utilizing badges assigned to a Market Maker, will be counted toward the requirement to provide two-sided quotations in 60% of the cumulative number of seconds, or such higher percentage as the exchange may announce. Therefore, a member organization that is a Market Maker in an options series where the member organization is also assigned as the Lead Market Maker will be held to both the Lead Market Maker and Market Maker obligations, separately, utilizing the badge that was used to quote to determine which requirement is being met.

The Exchange is not amending the current requirements which today require a Lead Market (including Remote Lead Market Makers), associated with the same member organization, to collectively provide two-sided quotations in 90% of the cumulative number of seconds, or such higher percentage as the exchange may announce in advance, for which that member organization's assigned options series are open for trading. Also, today, Lead Market Makers are required to make two-sided markets in any Quarterly Option Series, any Adjusted Option Series, and any option series with an expiration of nine months or greater.

Also, today, Streaming Quote Traders and Remote Streaming Quote Traders, associated with the same member organization, are collectively required to provide two-sided quotations in 60% of the cumulative number of seconds, or such higher percentage as the exchange may announce in advance, for which that member organization's assigned options series are open for trading. Notwithstanding the foregoing, a member organization is not required to make two-sided markets in any Quarterly Option Series, any adjusted option series, and any option series with an expiration of nine months or greater.

Further, all quotations must continue to comply with the intra-day bid/ask requirements specified within Options 2, Section 4(c).