OTC Orders Routed to REDI

How REDIBook Processes Orders

NOTE:

This functionality only applies to NMS (OTC) stocks during regular market hours.

1. Find an Internal Match within REDIBook
   REDI first tries to match your order with another REDI order.

2. Execute via Directly Connected ECNs
   If no internal match is available, or shares are remaining, REDI will try to match your order with a directly connected ECN. Directly connected ECNs are currently INET and ARCA.

3. Execute via SelectNet for non-SOES Participants (ECNs)
   If shares are still remaining, REDI tries to SelectNet and ECN.

4. Deliver Balance to SuperSOES
   If shares are still remaining, REDI gives the remaining balance of the order to SuperSOES. Once an order is delivered to SuperSOES, REDIBook no longer has control and the order is executed or partialed according to Nasdaq's logic.

Market Orders (MKT)

• Follow steps 1-4 at the inside price an continues with no limit price protection.

• Market orders are accepted at 7:30 AM, delivered to Nasdaq via SuperSOES, and held in queue until 9:30 AM. Market orders in the Nasdaq queue start receiving executions beginning at 9:30 AM.

• Market orders entered between 9:30 AM and 4:00 PM will follow the NBBO, provided that Non-SOES Participants (ECNs) are at the inside price tiers. When a Full SOES Participant is the best bid or offer, REDIBook delivers the full or partial balance market order to Nasdaq via SuperSOES for execution.

Limit Orders (LMT)

• Follow steps 1-4 at the inside price and continues up or down to the entered limit price.

• REDIBook works the entire order following the inside price only for Non-SOES Participants, moving incrementally up or down to the entered limit price. When a Full SOES Participant is at the inside market, REDIBook delivers the order to Nasdaq via SuperSOES at the entered limit price.

• Unexecuted, non-marketable balances will be returned to and posted on REDIBook at the limit price.

Immediate or Cancel Orders (IOC)

• Follow steps 1-4 simultaneously up or down to the limit price and cancels all unexecuted shares.

• IOC orders execute against not only internal REDIBook orders, but also all other ECNs up or down to the limit price via direct connections or SelectNet.

• All unexecuted shares are immediately cancelled.

• IOC orders can be executed outside NBBO, but never beyond the limit price.