Orders can be routed to a booth or specialist book via CMS and FIX. AEMI communicates natively via FIX, and a CMS-to-FIX gateway has been implemented to support participants submitting order flow through CMS. Orders in the book are routed away via private linkage to clear protected quotes and avoid trading through protected quotes of away markets.

BeX routing is powered by Lava Trading through a specific license agreement. BeX offers smart routing (NMS Participants Depth of Book Sweep, Sweep Top NMS Participants and Post to BeX) as well as direct routing (NBB or NBO direct routing). Routing to be determined on a message-by-message basis or by configuration.

CBOE Stock Exchange's routing technology has not yet been announced, but CBSX will be Reg NMS compliant and offer automatic sweep functionality to ensure NBBO executions. Additionally, since CBSX is based on the fully electronic CBOEdirect platform, CBSX will always be a "fast," protected market under Reg NMS, thus resting orders will always be fully accessible.

First, if the matching system receives a cross with satisfy or outbound ISO, and its execution would cause an improper trade-through, the matching system will execute the order and simultaneously route orders necessary to satisfy protected quotations. Second, if an order cannot be executed or displayed because it would trade through another market, CHX will cancel the order or route the order to another venue. (This aspect of its routing is currently pending SEC approval.)

ISE has contracted with Order Execution Services Holdings (OES) to provide outbound routing technology that will connect the ISE Stock Exchange to other market centers through a single-purpose broker-dealer (SPBD).

NASDAQ will use its proprietary order routing technology. NASDAQ's routing technology is designed to route orders to the best available prices, including reserve and depth of book.

National Stock Exchange (NSX) has partnered with a leading DMA provider and has established private linkage to all automated market centers. NSX BLADE allows clients to indicate on an order-by-order basis whether marketable orders that are not executed on the NSX BOOK should be routed to protected quotes or returned back to the client.

The NYSE is currently using the ITS Linkage plan routing system to reach away markets. In order to reach the NASD's ADF facility, which is not connected to the ITS Linkage Plan, the NYSE will route through NYSE Arca's facility.

PHLX will utilize private linkages to access all market centers. OES Holdings will provide the facility broker-dealer with the outbound routing technology, technical and operational services, and order audit trail compliance tools to the PHLX. Should a participant not wish an order to be considered for routing using the PHLX facility, the order must be marked "Do Not Route."

Hybrid.

Fully automated.

CBSX will be a fully automated stock exchange that supports both electronic trading and trades negotiated by floor brokers. CBSX's trading system is based on CBOE's hybrid model for options trading. CBSX's market will be ECN-like, but will include designated primary market makers and multiple, competing remote market makers. All orders, even those negotiated in open outcry, will be traded electronically.

Fully automated.

Fully automated.

Fully automated.

Fully automated.

The NYSE will be a Hybrid Market as filed and approved by the SEC. In this way the NYSE will be highly accessible for automatic executions and quote update, while at the same time available for auction-style trades. In addition, a full auto-ex experience will be available through NYSE Arca.

XLE is a fully automated market, with response times measured in milliseconds and with no manual intervention from participants. Immediate or cancel orders (IOC), and intermarket sweep orders, are both supported features in XLE.

Routed away automatically.

N/A

CBSX will employ the same mechanism as used by CBOE to ensure that orders are executed at the CBSX at the NBBO or routed to another market center. The "HAL" system allows a sub-second electronic auction if CBSX is not at the NBBO when an order arrives. If the CBSX liquidity provider community responds to the auction with interest that allows the order to be executed at CBSX, the order is executed at CBSX, avoiding outbound routing charges.

N/A

N/A

N/A

N/A

Both specialists and floor brokers have tools to provide electronic and auction-styled price improvement and to match better away markets.

Not applicable at the PHLX. XLE is a new business model without specialists or any manual participation.

The purpose of the AEMI matching engine is to implement a highly flexible, scalable and extensible rule-based core trading engine. It achieves flexibility through English-like rules that define the business processes around matching and execution.

The BeX trading engine is a pure price-and-time priority engine. It also accepts pure nondisplay orders (lowest priority in the book). It contains all the features and functions of a major stock exchange. BeX will be accepting orders in all Reg NMS securities (NASDAQ, NYSE and AMEX listed). The BeX trading engine will have a pre-open session for book building, an opening auction based on primary market opening price, a primary session, a closing auction based on primary market closing price including MCL and limit or close orders, and a post primary session to accept cross orders.

CBSX will use a strict price-time algorithm. There will be no specific customer or agency priority and no participation rights for DPMs or other market participants. Users responding to orders that are flashed for NBBO step-up will participate in the order in which they are received.

Once the matching engine receives an order in an NYSE, AMEX or regional-listed stock, the order's price is compared with resting limit orders in the book. If a match can be consummated without improperly trading through the NBBO, then the orders will be executed. If the execution would occur at a price that would improperly trade through the NBBO, then no execution will occur and the inbound order either will be routed or rejected depending upon the routing instructions for the order. If no match is available, then an inbound order ordinarily will be placed in the book and immediately quoted. If the order's price would improperly lock or cross the NBBO, then the order either will be routed or rejected pursuant to routing instructions from the order sender.

MidPoint Match is a fully automated and anonymous platform that executes orders at the midpoint price of the NBBO. It will match and execute all round lot orders, and is well suited for algorithmic orders. MidPoint Match will be integrated with a fully displayed market offering in Dec. 2006.

The matching engine will match orders in price/time priority with displayed shares executing before nondisplayed shares.

NSX BLADE is a strict price-time matching engine. All participants, whether they choose to be Order Delivery or not, have equal price-time standing in the NSX BOOK. The matching process within NSX BLADE decrements the outstanding shares of a resting order when it is matched. Order Delivery participants will be notified of the pending match and are given 100 milliseconds to respond. If an Order Delivery participant rejects the pending execution or times out, then the originating order is reevaluated against the current market conditions and appropriate actions, based on client-provided instructions, are taken.

The NYSE Hybrid Market will allow automatic execution for any marketable orders that are entered against the NYSE best bid or offer, as long as there is not a better posted market. In that case the NYSE will route to the better posted market, unless the order instructions do not request that routing. Marketable orders will execute at the best price and sweep to its conclusion unless it hits a Liquidity Replenishment Point (LRP) or encounters a better posted market.

XLE is a matching and open access system to support electronic equity trading. XLE features a central limit order book where all orders and executions are anonymous, treated in price/time priority, and eliminate the specialist role. XLE is a highly scalable, fast and reliable trading platform. With new proprietary technology, the PHLX is uniquely positioned to offer an exchange platform with great speed and dependability.

FIX version 4.2 is supported with some FIX 4.4 tags and enumerated values.

BeX uses FIX 4.0, 4.1 and 4.2. BeX also offers MMTP proprietary protocol and can accommodate any flavor of FIX market participant.

CBSX supports the use of FIX 4.2.

Yes. CHX supports FIX 4.0, 4.1 and CMS. However, CMS will provide order senders with more-limited functionality.

Version 4.2.

Yes. NASDAQ supports FIX version 4.2 as well as previous 4.x versions. NASDAQ also supports proprietary protocols: QIX, CTCI, RASHport and OUCH.

NSX has implemented FIX version 4.2 with minor modifications to allow its ETP Holders to send order flow and receive executions. FIX specs can be found at www.nsx.com.

The NYSE Hybrid Market already accepts FIX messages in addition to the historically available FCS protocol. The NYSE Hybrid and NYSE Arca markets are combining their entry points into one Common Customer Gateway that will allow customers to control their costs by being able to reach either market through one connection point utilizing the most convenient protocol.

Participants can access XLE through our API interface used for sending order flow to the XLE System via the FIX 4.2 specifications.

Intermarket Sweep Order (ISO): ISOs are immediate or cancel orders received from a member or trading center to fulfill Reg NMS obligations. Hit or Take (HoT): HoT orders are routable to the book and trade at best available bid or offer, and then expire. Not Held, Prospectus, 144, 145, Company Buyback: These order types are orders directed to a booth for manual handling by a floor broker. Cross Order: A cross order comprises a buy and a sell order, which must be of equal size and for the same give-up.

Limit orders, market orders, stop limit and stop market orders, reserve orders, minimum quantity orders, non-display orders, cross orders, mid-point cross orders, preferred price cross orders, cross with size cross order, ISO cross orders, ISO orders, price-penetrating ISO orders, OPG orders, MCL orders, limit or close orders, day orders, GTS orders, GTC orders, GTD orders, GTT orders, IOC orders, FOK orders.

CBSX will support all standard order types, including limit, market, immediate or cancel, all-or-none, fill-or-kill, stop, and opening orders. In addition, CBSX will offer four new order types: intermarket sweep order (ISO); cross-only order; midpoint cross order; sweep and cross order.

N/A

N/A

NASDAQ offers various order types/routing strategies, including STGY, SCAN, DOTM, intermarket sweep order. All NASDAQ strategies are designed to avoid locking/crossing the market. For more information on NASDAQ order types and routing strategies, please refer to the NASDAQ manual and/or the protocol specification documents found at www.NASDAQTrader.com.

NSX BLADE will support the following orders: market order, limit order with reserves, limit orders -- An IOC indicator can be added to a limit order, directed order, ISO Order, on behalf ISO order -- clients can indicate that NSX BLADE should perform an ISO SWEEP on their behalf.

The NYSE and NYSE Arca markets will provide order types specifically required by Reg NMS, such as intermarket sweep orders (ISOs) and IOC orders that do not route.

Limit: immediate or cancel (IOC), single sweep order (SSO); intermarket sweep order (ISO): reserve, pegged, IOC limit cross, midpoint cross, ISO cross, IOC limit cross marked benchmark, IOC limit cross marked contingent. In addition, quote management instructions (QMI) allow customers to determine how their quotes (orders) will be managed for any marketable order received.

No.

BeX smart routing has access to multiple ECNs and crossing networks, and will sweep liquidity that is within the NBBO, fulfilling Reg NMS obligations.

No.

Any trading center displaying a quote in the Consolidated Quotation System or UTP Plan Quotation Data Feed (UQDF) will be incorporated for routing a cross with satisfy or outbound ISO.

The ISE platform will include both a dark book, non-displayed pool of liquidity, known as MidPoint Match, as well as a fully displayed market. Unless otherwise indicated, all orders sent to the ISE Stock Exchange will access MidPoint Match, which continuously crosses incoming orders, to determine whether price improvement is available before routing to the displayed order book.

All destinations with protected quotes will be included in Nasdaq routing strategies. Nasdaq continuously evaluates the destinations included in our routing strategies. The addition of dark pools has not been determined.

NSX supports order delivery features for its participants. ECNs can publish their best bids and offers on the NSX Book, and they will be treated the same as any other NSX participant. Routing to a participating Order Delivery ECN is an integral feature of NSX BLADE. Routing to a participating ECN occurs whenever a marketable order interacts with a resting order delivery ECN order.

The NYSE Hybrid Market and NYSE Arca market will route to any market places that post better prices as required by Reg NMS. The NYSE Group recently purchased Match Point, a crossing network, and will announce plans for it when appropriate.

PHLX will incorporate any trading center displaying quotes in the National Market System into XLE's routing strategy. Initially, XLE will not encompass crossing networks.

AEMI will run in parallel during the pilot period. Once all symbols have been migrated to AEMI (by the Feb. 5 Reg NMS deadline), the legacy system will be decommissioned.

BeX will phase out the Beacon trading system in November and replace it with its new BxTrade trading system. The BeX Exchange is entirely architectured around straight-through processing where trades are sent in real time to back-office systems, market data feeds, BSE surveillance systems and clearing organization.

CBSX operates on an enhanced version of CBOE's successful CBOEdirect trade engine.

The MAX trading system and the Exchange's electronic book will be phased out.

The ISE Stock Exchange is a new platform designed to be fully compliant with Reg NMS.

NASDAQ has transitioned all NASDAQlisted securities to its new execution platform based on the INET system. NASDAQ plans to migrate issues listed on other exchanges prior to the implementation of Reg NMS.

NSX BLADE is a brand-new system designed to comply with Reg NMS. It will replace our legacy system, NSTS Migration to NSX BLADE began during October 2006 with the movement of a limited number of securities. NSX BLADE and the NASD/NSX TRF are expected to be fully migrated for all NMS securities by year-end.

The NYSE Hybrid Market is embedded into the NYSE's existing systems architecture. While changes may come to reduce latency, the NYSE will continue to maintain the Hybrid and NYSE Arca trading systems to provide customers with choice.

The PHLX will not operate two platforms concurrently. The present PHLX trading system, PACE, will no longer be available for order entry once we begin the new XLESM system and rule set.

AEMI is entering a pilot rollout period on November 6 with two symbols (TARGETS symbol TGZ and 8.40% ELKS symbol EET). All remaining equity and ETF symbols will be aggressively migrated during the pilot period before the Feb. 5 Reg NMS deadline.

The BeX trading system was launched November 2006.

CBSX is planning to be operational by early 2007.

Conversion of the first security to the Exchange's New Trading Model (NTM) began on Oct. 26, 2006. CHX will be converting Nasdaq-listed securities first, then NYSE-, AMEX- and regional-listed securities. The Exchange will post notices on its Web site to identify the securities that will be transitioned to the NTM, with full conversion by year-end. A cross with satisfy order type should be available by Dec. 1, 2006. Reg NMS functionality will be added to the NTM by year-end, but will not become functional until Feb. 5, 2007.

ISE Stock Exchange will be fully compliant with Reg NMS once the rollout of the fully displayed market is complete.

The rollout of NASDAQ securities is complete. Rollout of issues listed on other exchanges is to be determined.

NSX is rolling out two systems: NSX BLADE and the NASD/NSX TRF. The rollout of NSX BLADE began in October 2006. The NASD/NSX TRF will be a complementary system to facilitate internalization of trades by market centers. We expect to launch the NASD/NSX TRF shortly. The complete launch of NSX BLADE is gated by the NASD/NSX TRF. Both systems have to be "launched" before a greater number of securities can migrate to NSX BLADE. We expect that all securities will be fully rolled out on NSX BLADE by year-end.

The NYSE has implemented phases I and II of its announced Hybrid phases and is in the process of rolling out phase III. The last phase is targeted for commencement in December. The last phase will introduce ISOs and SEC IOSs.

Please refer to www.phlx.com/... for a breakdown of the XLE implementation plan and stock rollout schedule.

Our current fee schedule is published on our Web site. New pass-through charges for orders routed to away markets will be published before AEMI goes live.

See Web site: bostonexchange.com...

Not yet announced.

See Web site: chx.com...

Please refer to the ISE Stock Exchange Web site: www.isestock.com

The Nasdaq transaction fee schedule can be found at: nasdaqtrader.com...

Will be filed and publicly available shortly.

The NYSE currently charges 2.5 cents per hundred with volume caps for very active traders.

See Web site: www.phlx.com/...

AEMI represents a quantum leap forward for the AMEX in terms of connectivity, speed, access and technology. The system will contain functionality for both pre- and post-Regulation NMS compliance. With AEMI, for the first time the AMEX offers FIX connectivity, depth of book dissemination and a platform that will respond to electronic orders directed to its book in less than 30ms.

Through a technology service agreement, BeX will provide the core matching engine technology, market routing and a common connectivity gateway to the LeveL ATS. The BSE will operate the NASD/BSE Trade Reporting Facility (TRF), which will be subject to regulation by NASD. The TRF will accept and report nonexchange (over-the-counter) trades using the same connectivity used to access the Boston Equities Exchange. The TRF has no trade-reporting fees and shares 50 percent of the tape revenue on all eligible trades reported through the TRF.

CBSX currently is working with liquidity providers and order flow providers to establish connectivity in anticipation of the launch in early 2007. The initial target list of securities is the most active 2,800 NYSE, NASDAQ and AMEX stocks and ETFs.

In the New Model, CHX will provide trade execution via a matching system as well as institutional broker (IB) technology, clearing services, and regulatory services. The Exchange will also provide routing services from existing order-sending firms to off-exchange market-making firms, to other Exchange participants, to the Matching System, and to other venues. The Matching System will also offer routing services for orders that could not be executed or displayed because of tradethrough or locked-market considerations.

ISE Stock Exchange provides traders with the best of all worlds -- they can access both hidden and displayed pools of liquidity through a single, exchange-based platform that has route-out capabilities to ensure that all orders receive the best price under Reg NMS.

 

NSX's new technology platform -- NSX BLADE and NASD/NSX TRF -- was designed to accommodate the broadest range of trading needs. NSX BLADE was built from the ground up for the post-Reg NMS environment. It offers strict price-time priority, speed, order delivery and highly competitive exchange pricing.

The NYSE Hybrid Market provides customers unparalleled choice and flexibility in trading NYSE-listed securities, while maintaining the Exchange's hallmarks of best price and superior market quality.

PHLX has leveraged our expertise as a proven leader in PHLX XLE options technology to introduce a new destination for stock executions. XLE will provide a low-cost alternative to other market centers. Our streamlined operations allow PHLX to offer lower total transaction costs. The PHLX will continue to offer services tailored to meet the needs of the trading community, whether for the new equity-trading platform, our innovative offerings in the XL platform for options, or for trading futures through PBOT.