Section 1. Hours of Business
(a) The System operates and shall be available to accept bids and offers and orders from the time prior to market open specified by the Exchange on its website to market close on each business day, unless modified by NOM. Orders and bids and offers shall be open and available for execution as of 9:30 a.m. Eastern Time and shall close as of 9:00 p.m. Eastern Time except for option contracts on certain fund shares or broad-based indexes which will close as of 9:15 p.m. Eastern Time.
(b) Except for unusual conditions as may be determined by the Board, hours during which transactions in options on individual stocks may be made on NOM shall correspond to the normal business days and hours for business set forth in the rules of the primary market trading the securities underlying NOM options. Notwithstanding the foregoing, transactions may be effected in options contracts on Exchange-Traded Fund Shares, as defined in Options 4, Section 3(h); and in options contracts on exchange-traded notes including Index-Linked Securities, as defined in Options 4, Section 3(k), on NOM until 4:15 p.m.
(c) NOM shall not be open for business as provided within General 3, Section 1030.
Adopted Dec. 6, 2019 (SR-NASDAQ-2019-098); amended Mar. 8, 2022 (SR-NASDAQ-2022-023), operative Apr. 7, 2022.
Section 2. Units of Trading and Meaning of Premium Quotes and Orders
(a) Units of Trading. The unit of trading in each series of options traded on NOM shall be the unit of trading established for that series by the Clearing Corporation pursuant to the Rules of the Clearing Corporation and the agreements of Nasdaq with the Clearing Corporation.
(b) Meaning of Premium Quotes and Orders. Except as provided in paragraph (c), orders shall be expressed in terms of dollars per unit of the underlying security. For example, a bid of "5" shall represent a bid of $500 for an options contract having a unit of trading consisting of 100 shares of an underlying security, or a bid of $550 for an options contract having a unit of trading consisting of 110 shares of an underlying security.
Adopted Dec. 6, 2019 (SR-NASDAQ-2019-098); amended Jan. 29, 2020 (SR-NASDAQ-2020-006).
Section 3. Minimum Increments
(a) The following minimum quoting increments shall apply to options contracts traded on the Exchange:
(1) If the options series is trading at less than $3.00, five (5) cents;
(2) If the options series is trading at $3.00 or higher, ten (10) cents; and
(3) For options series traded pursuant to the Penny Interval Program as described in Supplementary Material .01 to Options 3, Section 3:
(A) one cent ($0.01) for all options series in QQQ, SPY, and IWM;
(B) one cent ($0.01) for all other options series included in the Penny Interval Program that are trading at less than $3.00; and
(C) five cents ($0.05) for all other options series included in the Penny Interval Program that are trading at or above $3.00.
(b) The minimum trading increment for options contracts traded on NOM will be one (1) cent for all series.
(c) A quote submitted to the System with an invalid trading increment will be re-priced. The quote will be rounded up to the nearest valid minimum price variation for offers and rounded down for bids.
Supplementary Material to Options 3, Section 3:
.01 Requirements for Penny Interval Program. The Exchange will list option classes for the Penny Interval Program (“Penny Program”) with minimum quoting requirements (“penny increments”) of one cent ($0.01) and five cents ($0.05), as set forth in Options 3, Section 3(a)(3)(A) - (C). The list of the option classes included in the Penny Program will be announced by the Exchange via Options Trader Alert and published by the Exchange on its website.

 
(a) Initial Selection. On the first trading day of the third full calendar month after April 1, 2020, the Penny Program will apply only to the 363 most actively traded multiply listed option classes, based on OCC’s National Cleared Volume in the six full calendar months ending in the month of approval, that (i) currently quote in penny increments, or (ii) overlie securities priced below $200, or any index at an index level below $200. Eligibility for inclusion in the Penny Program will be determined at the close of trading on the monthly Expiration Friday of the second full month following April 1, 2020.
(b) Annual Review. Commencing in December 2020 and each December thereafter, OCC will rank all multiply listed option classes based on National Cleared Volume for the six full calendar months from June 1 through November 30 for determination of the most actively traded option classes. 
(c) Newly listed Option Classes. The Exchange may add to the Penny Program a newly listed option class provided that (i) it is among the 300 most actively traded multiply listed option classes, as ranked by National Cleared Volume at OCC, in its first full calendar month of trading and (ii) the underlying security is priced below $200 or the underlying index is at an index level below $200. Any option class added under this provision will be added on the first trading day of the month after it qualifies and will remain in the Penny Program for one full calendar year, after which it will be subject to the Annual Review stated in section (b) above. 
Adopted Dec. 6, 2019 (SR-NASDAQ-2019-098); amended Dec. 13, 2019 (SR-NASDAQ-2019-100); amended Jan. 29, 2020 (SR-NASDAQ-2020-006); amended Jun. 23, 2020 (SR-NASDAQ-2020-036).
Section 4. Entry and Display of Quotes
(a) All bids or offers made and accepted on NOM in accordance with the NOM Rules shall constitute binding contracts, subject to applicable requirements of the Rules of the Exchange and the Rules of the Clearing Corporation.
(b) Quotes are subject to the following requirements and conditions:
(1) Market Makers may generate and submit option quotations.
(2) The System shall time-stamp a quote which shall determine the time ranking of the quote for purposes of processing the quote.
(3) Market Makers may enter bids and/or offers in the form of a two-sided quote. Only one quote may be submitted at a time for an option series. Quotes may be submitted as a bulk message.
(i) A “bulk message” means a single electronic message submitted to the Exchange which may contain a specified number of quotations as designated by the Exchange. The bulk message, submitted via SQF, may enter, modify, or cancel quotes. Bulk messages are handled by the System in the same manner as it handles a single quote message.
(4) The System accepts quotes beginning at a time specified by the Exchange and communicated on the Exchange's web site.
(c) Quotes will be displayed in the System as described in Options 3, Section 23.
Adopted Dec. 6, 2019 (SR-NASDAQ-2019-098); amended December 15, 2020 (SR-NASDAQ-2020-089), operative January 14, 2021; amended Jun. 27, 2023 (SR-NASDAQ-2023-018), operative Jul. 27, 2023.
Section 5. Entry and Display of Orders
(a) Participants can enter orders into the System, subject to the following requirements and conditions:
(1) Participants shall be permitted to transmit to the System multiple orders at single as well as multiple price levels.
(2) The System accepts orders beginning at a time specified by the Exchange and communicated on the Exchange's web site.
(3) The System shall time-stamp an order which shall determine the time ranking of the order for purposes of processing the order.
(4) Orders submitted to the System are subject to the following: risk protections within Options 3, Section 15 and the restrictions of order types within Options 3, Section 7. Orders may execute at multiple prices.
 
(5) Nullification by Mutual Agreement. Trades may be nullified if all parties participating in the trade agree to the nullification. In such case, one party must notify the Exchange and the Exchange promptly will disseminate the nullification to OPRA. It is considered conduct inconsistent with just and equitable principles of trade for a party to use the mutual adjustment process to circumvent any applicable Exchange rule, the Act or any of the rules and regulations thereunder.
(b) NBBO Price Protection. Orders, other than Intermarket Sweep Orders (as defined in Rule Options 5, Section 1(8) will not be automatically executed by the System at prices inferior to the NBBO (as defined in Options 5, Section 1(10)). There is no NBBO price protection with respect to any other market whose quotations are Non-Firm (as defined in Options 5, Section 1(11)).
(c) The System automatically executes eligible orders using the Exchange's displayed best bid and offer ("BBO") or the Exchange's non-displayed order book ("internal BBO") if the best bid and/or offer on the Exchange has been repriced pursuant to subsection (d) below and Options 3, Section 4(b)(6) above.
(d) Trade-Through Compliance and Locked or Crossed Markets. An order will not be executed at a price that trades through another market or displayed at a price that would lock or cross another market. An order that is designated by the member as routable will be routed in compliance with applicable Trade-Through and Locked and Crossed Markets restrictions.
(e) Orders will be displayed in the System as described in Options 3, Section 23.
Adopted Dec. 6, 2019 (SR-NASDAQ-2019-098); amended November 30, 2020 (SR-NASDAQ-2020-083); amended Jun. 27, 2023 (SR-NASDAQ-2023-018), operative Jul. 27, 2023.