What is changing?

NOM 2.0 will launch on Friday, August 26, 2011. NOM plans to introduce a small number of low-volume underlyings to NOM 2.0 on the first day, with additional symbols to follow.

Several components of the NOM 2.0 enhancements are subject to or pending SEC approval.

What is the rollout schedule?

In order to minimize the disruption to NOM participants, the rollout will be completed as quickly as possible while maintaining the highest level of stability. The current goal is to complete the rollout by the end of September.

• August 26, 2011 – Five low-volume products
• Week of August 29, 2011 – Several additional low-volume products
• Week of September 5, 2011 – Several additional products including moderate-to-high volume products
• Week of September 12, 2011 – No products will be rolled out due to expiration
• Week of September 19, 2011 – Several additional products
• Week of September 26, 2011 – Complete rollout

Specific symbols to be rolled out for each week will be announced as the rollout date approaches.

When will testing be available?

As announced in Options Technical Update #2011-5, testing is currently available in the Options Testing Facility (OTF). NOM encourages firms to complete their testing as soon as possible.

Will NOM offer any Saturday Production Tests?

Yes. NOM plans to offer Saturday Production Tests on the following days:

• Saturday August 6, 2011
• Saturday August 13, 2011
• Saturday August 20, 2011

What do I have to do during the rollout?

Firms using the current NOM FIX interface to access NOM can continue to do so during and after the rollout. The NOM system will direct FIX orders to the proper destination internally. Once the rollout is complete, FIX users will begin to be migrated to a native FIX connection. The native FIX connection is backwards compatible to the current FIX specification.

Firms using NOMAD need to migrate to NOM FIX (using the current NOM FIX interface) for symbols that have been rolled out to NOM 2.0. Firms can migrate from NOMAD to NOM FIX prior to the rollout to avoid managing symbol lists.

Firms using OTTO will need separate NOM 2.0 OTTO ports for the symbols that have been migrated to NOM 2.0. Non-Market Maker firms will need to migrate to NOM FIX for symbols that have been rolled out to NOM 2.0.

Market makers may also choose to use SQF, the same bulk quoting interface available on NASDAQ OMX PHLX^SM (PHLX^®), for symbols that have been migrated to NOM 2.0.

The rollout will also include the new versions of Best of NASDAQ Options (BONO) and NASDAQ ITCH to Trade Options (ITTO) and will retire NASDAQ Options Depth at Price (DAP) and NASDAQ Options NOIView. The data feed rollout will occur as part of the NOM 2.0 migration.

What do I need to do to prepare for NOM 2.0?

Firms should:

• Perform testing in the Options Test Facility
• Review interface specifications.
• Review market data specifications.
• Contact NASDAQ OMX^® Membership to set up NOM 2.0 exchange accounts, convert MPIDs to mnemonics and convert Market Maker MPIDs to badges (similar to PHLX participant ID structure) as per Options Regulatory Alert #2011-7.
• Provide NASDAQ OMX with NSCC numbers for direct debit billing as per Options Regulatory Alert #2011-6.
• Review the updated market maker requirements as per Options Regulatory Alert #2011-10.

Where can I find more information?

• Refer to the NOM 2.0 Frequently Asked Questions document on the NASDAQ OMX Trader^® website.
• Refer to the NOM 2.0 interface specifications and market data feed specifications on the NASDAQ OMX Trader website.
• Contact Transaction Services U.S. Market Sales at +1 800 846 0477.