Nasdaq ISE (ISE), Nasdaq GEMX (GEMX), and Nasdaq MRX (MRX) amend certain quoting obligations in Options 2, Section 5(e) effective March 3, 2025. Specifically, these exchanges will begin requiring Competitive Market Makers (CMMs) to provide two-sided quotations on a daily basis. Today, a CMM is not required to enter quotations in the options classes to which it is appointed. Further, the exchanges are amending Preferred Market Maker requirements to require that a Market Maker indicate interest in the program by notifying the exchange.

With this amendment to Options 2, Section 5(e), CMMs will be required to collectively 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’s assigned options class is open for trading. Competitive Market Makers will not be required to make two-sided markets in any Quarterly Options Series, any Adjusted Options Series, and any options series with an expiration of nine months or greater for options on equities and exchange-traded funds (“ETFs”) or with an expiration of twelve months or greater for index options.

Additionally, a Preferred Market Maker would have an ongoing 90% quoting obligation, on a daily basis, from the time a Preferred Market Maker executes its first Preferenced Order in the option in which the Preferred Market Maker is assigned until a Preferred Market Maker notifies the Exchange that it is no longer preferenced. Market Makers desiring either to begin receiving Preferenced Orders or cease receiving Preferenced Orders should contact Membership at membership@nasdaq.com.

With this amendment to Options 2, Section 5(e), Preferred Market Makers, associated with the same Member, are collectively required to provide two-sided quotations in 90% of the cumulative number of seconds, or such higher percentage as the Exchange may announce in advance, among all options series in which the Preferred Market Maker has executed a Preferenced Order on a daily basis, except that a Preferred Market Maker shall not be required to make two-sided markets in any Quarterly Options Series, any Adjusted Options Series, and any options series with an expiration of nine months or greater for options on equities and ETFs or with an expiration of twelve months or greater for index options. A Preferred Market Maker has the ongoing quoting obligation from the time a Preferred Market Maker executes its first Preferenced Order in the options in which the Preferred Market Maker is assigned until a Preferred Market Maker notifies the Exchange that the Preferred Market Maker is no longer preferenced.

Primary Market Makers (PMMs), CMMs, and Preferred Market Makers (collectively, Market Makers) are required to meet market making obligations separately. Quotes submitted through the Specialized Quote Feed (SQF) interface, utilizing badges and in options series assigned to a PMM, 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 SQF interface, utilizing badges and in options series assigned to a CMM, 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 that is a CMM in an options series where the Member is also assigned as the PMM in that options series will be held to both the PMM and CMM quoting obligations, separately, utilizing the badge that was used to quote to determine which requirement is being met.

ISE / GEMX / MRX CMMs:

ISE / GEMX / MRX PMMs:

ISE / GEMX / MRX Preferred CMMs:

In order to be considered preferenced, the Member must also be quoting at the NBBO at the time the Preferenced Order is received and execute the order in accordance with Options 2, Section 10.

The exchange will calculate compliance with the required quoting percentage by (i) taking the total number of seconds the Member disseminates quotes in each assigned options series, excluding, for CMMs and Preferred CMMs, Quarterly Options Series, any Adjusted Options Series, and any options series with an expiration of nine months or greater for options on equites and ETFs or with an expiration of twelve months or greater for index options; and (ii) dividing that time by the eligible total number of seconds each assigned options series in the options class is open for trading that day. Quoting is not required in every assigned options series. Compliance with this requirement is determined by reviewing the aggregate of quoting in assigned options series for the Member.

For purposes of the exchange's surveillance of Member compliance with Options 2, Section 5(e), the exchange will determine compliance on at least a monthly basis. The exchange's monthly compliance evaluation of the quoting requirement does not relieve a Member of the obligation to provide two-sided quotes on a daily basis, nor will it prohibit the exchange from taking disciplinary action against a Member for failing to meet the quoting obligation each trading day.