ELECTRONIC ACESS MEMBERS, VALIDATION

....FIRST.
AND DOUBLE ISSUE....

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Both market makers and EAMs can use ISE-supplied terminals to send quotes and orders
to the ISE, or they can design their own systems to connect through our API. In either
case, both market makers and EAMs can connect to our system though the use of one or
more T-1 communication lines.NOTE 59 Thus, the Amex’s unsupported "understanding" that
our system will handle 40 to 60 messages per second for market makers, but only two
messages per second for EAMs, is incorrect. Because we will have multiple market
makers independently quoting, and because those market makers need to update multiple
series of an options class upon a change in the underlying security, capacity needs are far
greater for market makers than for customers placing or canceling individual orders.
Accordingly, market makers may communicate quotation changes in multiple series
within a single message. However, the speed at which market maker quotations and
customer orders are communicated to the ISE is the same. This is in contrast to the floorbased
options exchanges, where there is an inherent time advantage for market makers,
since quotations are updated on the floors immediately, while customer orders must be
communicated to the exchanges.
B. ISE Trading System Overview