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Wednesday, May 10, 2006

Equity Trader Alert #2006 - 63
NASDAQ to Implement New INET Routing Strategies, Effective May 15, 2006

Please Route To: Head Traders; Technical Contacts; Compliance Officers

What you need to know:

  • Effective Monday, May 15, 2006, NASDAQ is introducing two new INET routing strategies to the New York Stock Exchange (NYSE) and American Stock Exchange (Amex):
    • DOTM (DOT when Marketable)
    • DOTP (DOT after Posting)

Whom you should contact: NASDAQ Market Sales at 800.846.0477

What are the new routing strategies?
Effective Monday, May 15, 2006, NASDAQ® is introducing two new INET routing strategies to the NYSE and Amex to give subscribers greater flexibility in their routing decisions. The new routing strategies, created in response to requests from the industry, are:

  • DOTM (DOT when Marketable)— After routing to accessible market centers, the order will reside on the INET book until marketable on the NYSE and Amex, at which time the order will be routed via DOT.
  • DOTP (DOT after Posting) — After routing to accessible market centers, the order will reside on the INET book for a pre-determined period of time, currently set at three seconds, after which the order will be routed via DOT.

How are the new routing strategies different from the current strategies?
The new routing strategies will allow traders to post the order to INET prior to it being routed via DOT. Current DOT strategies — which will continue to be available — send an order via DOT immediately after hitting any other available market center, per the routing instructions.

What do I have to do?
To use either of the new routing strategies, enter the following instructions related to the order-entry protocol used:

Strategy FIX RASH
DOTM Tag 76 = DOTM Route Dest/Exec Broker = DOTM
DOTP Tag 76 = DOTP Route Dest/Exec Broker = DOTP

Whom can I contact for additional information?

Subscribe to NASDAQ’s email notifications. .

NASDAQ is the largest U.S. electronic stock market. With approximately 3,200 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks. For more information about NASDAQ, visit the NASDAQ Trader website at www.NASDAQTrader.com.