# EDGAR Filing Document

**Accession Number:** 0001795131
**File Stem:** 0001539497-23-000091
**Filing Date:** 2023-1
**Character Count:** 59623
**Document Hash:** 90da48d50dbff5a9868fb9056bb386a9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001539497-23-000091.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0001539497-23-000091

**CONFORMED SUBMISSION TYPE**: ATS-N/MA

**PUBLIC DOCUMENT COUNT**: 5

**FILED AS OF DATE**: 20230130

**DATE AS OF CHANGE**: 20230301

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BLUE OCEAN ATS, LLC
- **CENTRAL INDEX KEY:** 0001795131
- **IRS NUMBER:** 843711786
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** ATS-N/MA
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 013-00180
- **FILM NUMBER:** 23567227

**BUSINESS ADDRESS:**
- **STREET 1:** BROOK 35 PLAZA // SUITE 250
- **STREET 2:** 2150 ROUTE 35
- **CITY:** SEA GIRT
- **STATE:** NJ
- **ZIP:** 08750
- **BUSINESS PHONE:** 917-533-5595

**MAIL ADDRESS:**
- **STREET 1:** BROOK 35 PLAZA // SUITE 250
- **STREET 2:** 2150 ROUTE 35
- **CITY:** SEA GIRT
- **STATE:** NJ
- **ZIP:** 08750

### Attached PDF Documents

**Attachment 1:** `formbdschedulea.pdf`

9/14/22, 12:18 PM

Web CRD - BD Historical Filing » Schedule A [User Name: mpaverman196, OrgID: 306512]

**Primary Business Name: BLUE OCEAN ATS**

**BD Number: 306512**

**BD - AMENDMENT**

**06/22/2022**

**BD - DIRECT OWNERS/EXECUTIVE OFFICERS**

Are there any indirect owners of the *applicant* required to be reported on Schedule B?

☑ Yes ☐ No

| Ownership Codes: | NA - less than 5% | B - 10% but less than 25% | D - 50% but less than 75% |
| --- | --- | --- | --- |
|  | A - 5% but less than 10% | C - 25% but less than 50% | E - 75% or more |

| Full Legal Name | DE/FE/I | Title or Status | Date Acquired | Own. Code | Control Person | PR | CRD #(or S.S.No., IRS Tax #, Emp. ID) |
| --- | --- | --- | --- | --- | --- | --- | --- |
| BEATON, DANIEL STEWART | I | CHIEF FINANCIAL OPERATIONS PRINCIPAL | 09/2020 | NA | N | N | 4240769 |
| BLUE OCEAN TECHNOLOGIES, LLC | DE | MANAGING MEMBER | 10/2019 | E | Y | N | 84-3422717 |
| BROWN, JASON MATTHEW | I | HEAD OF SALES AND ATS OPERATIONS | 08/2021 | NA | Y | N | 2334010 |
| HYNDMAN, BRIAN KEITH | I | PRESIDENT/COO | 06/2022 | NA | N | N | 2281837 |
| PAVERMAN, MARK ELLIOT | I | CHIEF COMPLIANCE OFFICER | 10/2021 | NA | N | N | 1046105 |

© 2022 FINRA. All rights reserved. FINRA is a registered trademark of the Financial Industry Regulatory Authority, Inc.

Privacy | Legal | Terms & Conditions

https://crd.firms.finra.org/FRM/BDBDW/CRD_FRM_BDViewHist.aspx?FR=Print6&FL=6&RefNum=&form=BD&type=AMENDMENT&PrintHistorical=-1&HistoryID=59176252&ChangesOnly=0&Source=&... 1/1

**Attachment 2:** `formbdscheduleb.pdf`

9/14/22, 12:19 PM

Web CRD - BD Historical Filing » Schedule B [User Name: mpaverman196, OrgID: 306512]

**Primary Business Name: BLUE OCEAN ATS**

**BD Number: 306512**

**BD - AMENDMENT**

**06/22/2022**

**BD - INDIRECT OWNERS**

| Ownership Codes: | C - 25% but less than 50% | E - 75% or more |
| --- | --- | --- |
|  | D - 50% but less than 75% | F - Other General Partners |

| Full Legal Name | DE/FE/I | Entity in Which Interest is Owned | Status | Date Acquired | Own. Code | Control Person | PR | CRD # (or SSN, IRS Tax #, Emp. ID) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| BLUE OCEAN FINANCIAL TECHNOLOGY PTE. LTD. | FE | BLUE OCEAN TECHNOLOGIES, LLC | MEMBER | 12/2016 | C | Y | N | FOREIGN |
| URBANA CORPORATION | FE | URBANA INTERNATIONAL INC. | SHAREHOLDER | 04/2021 | E | Y | Y | FOREIGN |
| URBANA INTERNATIONAL INC. | DE | BLUE OCEAN TECHNOLOGIES LLC | MEMBER | 06/2021 | C | Y | N | 38-4179744 |

© 2022 FINRA. All rights reserved. FINRA is a registered trademark of the Financial Industry Regulatory Authority, Inc.

Privacy | Legal | Terms & Conditions

https://crd.firms.finra.org/FRM/BDBDW/CRD_FRM_BDViewHist.aspx?FR=Print7&FL=7&RefNum=&form=BD&type=AMENDMENT&PrintHistorical=-1&HistoryID=59176252&ChangesOnly=0&Source=&... 1/1

**Attachment 3:** `ex3redline.pdf`

## Part II: Activities of the Broker-Dealer Operator and its Affiliates

### Item 6: Activities of Service Providers

b. Does any entity, other than the Broker-Dealer Operator, support the services or functionalities of the NMS Stock ATS ('service provider') that are required to be explained in Part III of this form?

Yes  No

If yes, both identify the service provider and provide a summary of the role and responsibilities of the service provider in response to the applicable Item number in Part III of this form, as required. List the applicable Item number here. If there are services or functionalities that are not applicable to Part III, identify the service provider, the services and functionalities, and also provide a summary of the role and responsibilities of the service provider here.

Equinix NY4 is the outsourced data center for BOATS' matching engines. Equinix provides a secure space for the BOATS servers, as well as cross-connects, power, space, and professional services. Further information on Equinix is contained in Part III, Item 6.

Fundamental Interactions, Inc. ('FI') is a technology and software developer that licenses certain matching engine software products to BOATS via a sub-licensing agreement with BOT - the parent company of the ATS operator. FI hosts BOATS' servers in their secure cage within the Equinix NY4 data center. BOATS uses FI technology and software for matching, risk, and data dissemination, with full control of these activities exercised by the ATS. FI personnel ('FI Personnel') also provide support services to BOATS regarding the use of the FI technology and software. See also Part III, Item 11.

As described in Part III, Item 22, BOATS has entered into a clearing agreement with RQD* Clearing, LLC Velox Clearing LLC (NSCC # 4305 3856), a FINRA member firm and a member of the National Securities Clearing Corporation, to provide for clearance and settlement of transactions executed on the ATS. OneMarketData LLC provides last print data to BOATS.

c. If yes to Item 6(b), does the service provider, or any of its Affiliates, use the NMS Stock ATS services?

Yes  No

## Part III: Manner of Operations

### Item 2: Eligibility for ATS Services

a. Does the NMS Stock ATS require Subscribers to be registered broker-dealers?

Yes  No

b. Are there any other conditions that the NMS Stock ATS requires a Person to satisfy before accessing the ATS services?

☑ Yes ☐ No

If yes, list and provide a summary of the conditions.

The ATS allows as Subscribers those applicants who satisfy certain eligibility requirements. Specifically, Subscribers must meet the following requirements:

1. It is a U.S. Securities and Exchange Commission ("SEC") registered broker-dealer and a member in good standing of at least one self-regulatory organization.
2. Satisfy such technical or systems requirements as may be prescribed by BOATS, including but not limited to connectivity certification, the ability to send orders and cancellations, and to receive trades, cancellations, rejects and trade breaks from the ATS.
3. Have clearing and settlement systems and/or arrangements in place to support participation on the ATS, which would include clearing or accepting clearing of securities through RQD* Clearing, LLC Velox Clearing LLC (NSCC # 4305 3856), BOATS' clearing firm, and has in place relevant documentation to establish this clearing relationship.
4. Execute the Subscriber Agreement.
5. Execute an appropriate "give-up" agreement to establish an "on behalf of" reporting relationship (e.g., an executed Uniform Trade Reporting Facility Service Bureau/Executing Broker Agreement or Nasdaq AGU/Attachment 2 Agreement).
6. It has completed that ATS's onboarding process (e.g., satisfied BOATS' KYC/AML review, passed OFAC checks, passed a disciplinary review, executed all pertinent agreements).

BOATS shall, after receiving a completed Subscriber Agreement and any additional documentation requested, in its discretion, approve or reject such application, or approve such application subject to such conditions and/or restrictions as it considers appropriate (e.g., potentially limiting the number of orders a Subscriber may send). It processes all applications and completes its review and approval/denial process within a timely manner of receipt of each completed Subscriber application. Each approval or denial must be authorized by the BOATS Managing Director/CCO. Trading Operations shall then promptly notify the applicant of the decision.

BOATS creates and maintains records of all such decisions granting access, denying access, and granting limited or restricted access, for each applicant, and the reasons for so doing.

7. Comply with credit risk controls, as described in Part III, Item 7.

c. If yes to Item 2(b), are the conditions required to be identified in Item 2(b) the same for all Persons?

Yes ☐

d. Does the NMS Stock ATS require Subscribers to enter a written agreement to use the ATS services?

Yes ☐

### **Item 22: Clearance and Settlement**

a. Describe any procedures and material arrangements undertaken to facilitate the clearance and settlement of transactions on the NMS Stock ATS (e.g., whether the ATS becomes a counterparty, whether it submits trades to a registered clearing agency, or whether it requires Subscribers to have arrangements with a clearing firm).

BOATS' clearing firm is RQD* Clearing, LLC Velox Clearing LLC (NSCC # 4305 3856). RQD* Clearing, LLC Velox Clearing LLC is a participant in the National Securities Clearing Corporation, which clears equity transactions, and The Depository Trust Company ('DTC'), which facilitates settlement of equity and other types of securities. BOATS provides trade information to RQD* Velox in an end-of-day format for clearing purposes. RQD* Velox submits the trade information to NSCC to facilitate settlement. Settlement of trades executed on the ATS occurs through the Continuous Net Settlement (CNS) system operated by DTC and generally settle on the second day after the trade.

A Subscriber must execute appropriate 'give-up' agreements to establish an 'on behalf of' reporting relationship (e.g., an executed Uniform Trade Reporting Facility Service Bureau/Executing Broker Agreement or Nasdaq AGU/Attachment 2 Agreement).

BOATS executes trades solely in an agency cross capacity. It does not become counterparty to any Subscriber trades.

b. Are the procedures and material arrangements undertaken to facilitate the clearance and settlement of transactions on the NMS Stock ATS the same for all Subscribers and the Broker-Dealer Operator?

Yes ☐

## Form ATS-N/MA: NMS Stock Alternative Trading System Report

### Cover Page

**NMS Stock ATS Name:** BLUE OCEAN ATS, LLC

**Operates Pursuant to Form ATS?** No

**Statement About Amendment:**
This is a Material Amendment to the ATS-N filed for the Blue Ocean ATS ("BOATS") in relation to the change in clearing firms from Velox Clearing LLC (NSCC#3856) to RQD* Clearing, LLC (NSCC#4305). This Material Amendment reflects changes to Part II Item 6b, Part III Item 2b, Part III Item 22a. These changes apply to all Subscribers and to the broker-dealer operator.

### Part I: Basic Information

**1. Is the ATS operated by a registered broker-dealer?:** Yes

**2. Name of the NMS Stock ATS:** BLUE OCEAN ATS, LLC

**3. Name(s) under which business is conducted:** BOATS

**4a. Broker-Dealer SEC File No.:** 008-70452

**4a. Broker-Dealer CRD No.:** 000306512

**5a. Self-Regulatory Organization:** Financial Industry Regulatory Authority, Inc. "FINRA"

**5b. Effective Date of Membership:** 10/13/2020

**5c. MPID:** BLUE

**6u. Website:** www.blueoceanats.com

**7. Primary Site Address:** Equinix NY4, 755 Secaucus Rd., Secaucus, US-NJ, 07094

**8. Is Exhibit 1 (list of subscribers) on a public website?:** No

**9. Is Exhibit 2 (written standards for access) on a public website?:** No

### Part II: Written Safeguards and Procedures

**1a. Are any business units of the Broker-Dealer Operator permitted to enter interest?** —

**1b. Are the services offered and provided by the ATS to such business units the same?** —

**1c. Are there any arrangements between the ATS and such business unit?** —

**1d. Can order and trading interest of the business unit be routed out of the ATS?** No

**2a. Are any Affiliates of the Broker-Dealer Operator permitted to enter interest?** —

**2b. Are the services offered and provided by the ATS to such Affiliates the same?** —

**2c. Are there any arrangements between the ATS and such Affiliate?** —

**2d. Can order and trading interest of the Affiliate be routed out of the ATS?** No

**3a. Can a Subscriber opt-out from interacting with the order and trading interest of the Broker-Dealer Operator?** —

**3b. Can a Subscriber opt-out from interacting with the order and trading interest of an Affiliate?** —

**3c. Are the means to opt-out the same for all Subscribers?** —

**4a. Are there any arrangements between the Broker-Dealer Operator and a trading center?** No

**5a. Does the Broker-Dealer Operator offer any products or services to Subscribers?** Yes

   - **Products/Services:** BOATS provides all market data to Blue Ocean Technologies, LLC ("BOT") - the parent company of the ATS operator.

BOT manages and distributes all BOATS market data that Subscribers, Sponsored Access Clients, and Third-Party Distributors receive. Third-Party Distributors include vendors, service bureaus or service providers that consume or redistribute market data, Subscribers and non-Subscribers can receive the market data feed. Non-Subscribers that receive the market data feed include Third-Party Distributors.

BOT distributes and disseminates real-time market data and does not offer any delayed market data services. Market data content that is disseminated to Subscribers, Sponsored Access Clients, and Third-Party Distributors does not contain any CTI. Any CTI contained in the creation of market data is anonymized by BOATS before being dissemination by BOT to Subscribers, Sponsored Access Clients, and Third-Party Distributors. For more information, please see Part III, Item 15 and Part III, Item 19.

**5b. Are the terms and conditions of these products/services the same for all Subscribers?** —

**5c. Does an Affiliate of the Broker-Dealer Operator offer any products or services to Subscribers?** —

**5d. Are the terms and conditions of these products/services offered by the Affiliate the same for all Subscribers?** —

**6a. Do any employees of the Broker-Dealer Operator or its Affiliates access confidential trading information?** Yes

   - **Details:** Both BOATS and BOT have non-registered fingerprint personnel ("NRF Personnel") working  in technology and operations roles (application development and systems, market data,  infrastructure design, systems administration, operations and database administration).

These shared personnel have access to CTI. BOATS considers Subscribers' order and execution-related information and data or analytics related to a Subscriber's transactions to be confidential trading information subject to protection. CTI does not include post- execution reporting under applicable reporting rules or regulations.

CTI also does not include aggregated data resulting from the combination of historical data associated with a Subscriber and other BOATS' Subscribers. The CCO determines on an individual basis whether the duties of an individual warrants access to CTI, and, specifically, to which CTI they are granted access.

**6b. Does any other entity provide services to the ATS?** Yes

   - **Providers:** Equinix NY4 is the outsourced data center for BOATS' matching engines. Equinix provides a secure space for the BOATS servers, as well as cross-connects, power, space, and professional services. Further information on Equinix is contained in Part III, Item 6.

Fundamental Interactions, Inc. ("FI") is a technology and software developer that licenses certain matching engine software products to BOATS via a sub-licensing agreement with BOT - the parent company of the ATS operator. FI hosts BOATS' servers in their secure cage within the Equinix NY4 data center. BOATS uses FI technology and software for matching, risk, and data dissemination, with full control of these activities exercised by the ATS. FI personnel ("FI Personnel") also provide support services to BOATS regarding the use of the FI technology and software. See also Part III, Item 11.

As described in Part III, Item 22, BOATS has entered into a clearing agreement with RQD* Clearing, LLC (NSCC # 4305), a FINRA member firm and a member of the National Securities Clearing Corporation, to provide for clearance and settlement of transactions executed on the ATS. OneMarketData LLC provides last print data to BOATS.

**6c. Do any of these service providers also use the services of the ATS?** —

**6d. Are the services of the ATS to such service provider the same as for other similar Subscribers?** —

**7a. Description of Safeguards and Procedures:**
BOATS considers Subscribers' order and execution-related information and data or analytics related to a Subscriber's transactions to be confidential trading information subject to protection. Improper use of CTI would be using the knowledge of such confidential information to conduct trading in advance of Subscribers or Sponsored Access Clients ("front running"), sharing such information with others who might front run Subscribers or Sponsored Access Clients, or using such information to gather intelligence on the positions in securities that a Subscriber or Sponsored Access Client might hold. The CCO reviews samples of emails of both Registered Representatives and NRF personnel; the CCO reviews such emails weekly for any indication of improper use of CTI. BOATS does not use instant messaging, and personnel are prohibited from using text messaging for business purposes.

Both BOATS and BOT have implemented written safeguards and written procedures to protect CTI, consistent with Rule 301(b)(10) of Regulation ATS. Specifically, both BOATS and BOT have established internal controls at the trading system and personnel levels intended to prevent CTI from passing to any unauthorized individuals or entities, and to prevent Registered Representatives (personnel who are registered with the firm's SRO - FINRA) or NRF Personnel from improperly using CTI. Both BOATS and BOT maintain policies and procedures designed to control access to its servers, database, market data feeds and associated applications which include policies and procedures for the creation and distribution of market data. Any individual seeking access to systems which contain Subscribers' confidential trading information must submit a request to the CCO of BOATS for each server, database, and/or application which may contain the information. The CCO of BOATS must approve such request(s) before an individual is granted access. An individual's request to gain access shall be denied by the /CCO if it is not a prerequisite for the requesting individual to carry out his or her duties.

All approved access requests are subject to periodic (at least quarterly) review by the CCO pursuant to BOATS' written supervisory procedures ("WSPs") to ensure that the rationale for granting access is still relevant. Further access to the servers, the database, and/or applications is denied if upon review it is deemed that an individual no longer requires access to CTI to carry out his or her duties.

BOATS personnel (designated by the CCO) review BOATS trade data daily for suspicious activity, such as wash trading, self-matching and front running that might indicate misuse of CTI.

The internal controls that BOATS employ, which also apply to BOT, include the following:

Control and Supervision of Access to Confidential Trading Information - BOATS and BOT have procedures and safeguards in place to protect CTI. In accordance with Rule 301(b)(10), the CCO of BOATS ensures that access to CTI is limited to Registered Representatives, and the NRF Personnel identified in Part II, Items 6(a) and (b), and that such personnel have access only to the CTI for which they have been permissioned as described in Part II, 6(a). The BOATS CCO supervises NRF Personnel who have access to CTI. As discussed in Part II, Item 6(a), the CCO of BOATS determines on an individual basis whether to grant access to CTI to any additional personnel and such access is granted only to support the operation of BOATS based on the job functions of those being granted access. The Registered Representatives and NRF Personnel responsible for supporting BOATS operations have controlled access via login credentials to view orders and trades in the ATS system.

Registered Representatives and NRF Personnel with Trading Operations and IT/operations responsibilities may view real-time order and trade information through a front-end graphic user interface ("GUI") or FI console. Registered Representatives and NRF Personnel with IT/operations responsibilities may access order and trade information by means of querying a database. Additionally, Registered Representatives and NRF Personnel described in Part II Items 6(a) have access to historical information through access to a shared drive. If an order has been entered into BOATS, it resides on the BOATS server, but such data is only accessible by Registered Representatives, NRF Personnel or FI Personnel who support BOATS operations as supervised by the BOATS CCO. BOATS requires Registered Representatives and NRF Personnel to understand the authorized uses of CTI and requires such personnel to acknowledge this understanding by attesting in writing that they have reviewed and understood BOATS' written supervisory procedures ("WSPs").

These personnel undergo annual compliance training that includes materials related to protecting CTI. Registered Representatives and NRF Personnel with access to CTI are required to complete an annual attestation regarding the proper use of CTI. The CCO is also responsible for determining whether to grant FI Personnel, as that term is defined in Part II, Item 6(b), access to CTI, either on a temporary or permanent basis, and for determining what CTI such persons may be granted access. FI Personnel's access to servers is limited to specific IP addresses using Network Address Translation and explicit firewall access rules. Limited user remote server access is allowed only via Secure Shell (SSH) and the FI console, both of which are limited to specific users and are password protected. FI Personnel are subject to strict contractual prohibitions on the use of any of BOATS CTI, and FI Personnel's access to CTI is supervised by the BOATS CCO. Registered Representatives, NRF Personnel and FI Personnel therefore understand that they cannot misuse CTI. BOATS conducts periodic reviews of access to CTI to ensure BOATS' continued compliance with Rule 301(b)(10). As part of the review, BOATS confirms that individuals with access to CTI continue to have a valid need to access such information based on the access standards set out for a given position in this Part II, Item 7(a).

Trading Systems Controls - NRF Personnel and FI Personnel help to maintain the operability of the BOATS trading system and related market data feed. System access to the ATS server is regulated by secure logins and monitored by compliance personnel. FI provides the infrastructure and technology for BOATS via a sub-licensing agreement with BOT - the parent company of the ATS operator. BOATS, utilizing that licensed technology, is responsible for the maintenance and support of the order book and Subscriber/Sponsored Access Client information. The ATS utilizes a dynamic and real-time application to monitor intraday trading from a trade support perspective. As an additional protection, neither BOATS (or its parent company) nor FI conduct any principal trading or market making activity.

Restricted Access to Network Infrastructure - The ATS servers and networking equipment is located the Equinix NY4 data center. FI Personnel provide technical support regarding the operation of the software and hardware used by the ATS for its matching engine and its market data distribution. When needed, FI Personnel work with NRF Personnel to resolve software systems and hardware issues that may require access to the BOATS network infrastructure and CTI subject to the supervision of Registered Representatives and NRF Personnel.

Personal Securities Transactions - BOATS' policies and procedures require Registered Representatives and NRF Personnel to hold any securities acquired in personal securities transactions for 30 days. BOATS' CCO receives duplicate copies of all brokerage statements and trade confirmations of such personnel. The CCO reviews these documents when they are received and looks for unusual trading patterns, e.g., trades involving unusual quantities and trading in certain types of securities. We note that given that trading in NMS stocks on BOATS occurs outside of Core Market Hours, it is unlikely that Registered Representatives or NRF Personnel could use CTI for personal trading either on BOATS, where they are prohibited from trading, or for trading on markets during Core Market Hours, at which time the CTI likely would be stale. The policies and procedures cover all securities transactions in outside brokerage accounts directed by the personnel referenced in the preceding paragraph, including but not limited to, transactions in securities issued by a company (e.g., stocks, bonds), transactions in any reference securities (e.g., options, preferred stock, futures), and transactions in any packaged products including but not limited to mutual funds and exchange traded funds.

**7b. Can a Subscriber consent to the disclosure of its confidential trading information?** No

**7d. Summary of roles of persons with access to confidential trading information:**
Registered Representatives have access to CTI via the FI console (see Part II 7(a)). Registered Representatives run the broker dealer, particularly, those aspects which are client facing including sales, marketing, approval of Subscribers, trading operations, oversight of trading operations, and supervision of the firm (by those Registered Representatives designated by the firm as the principals with FINRA). NRF Personnel including BOATS and BOT personnel have access to CTI via the FI console (see Part II 7(a)). NRF Personnel are responsible for the proper operation of the firm's systems that support the business of the firm including market data. FI Personnel have access to CTI via the FI console (see Part II 7(a)). FI Personnel are responsible for assisting NRF Personnel in the performance of their duties. The CTI that is available to Registered Representatives, NRF Personnel including both BOATS and BOT personnel and FI Personnel is the same, and it is comprised of real-time information on the quotes entered in the matching engine, specifically, which Subscribers/Sponsored Access Clients are actively placing quotes on the ATS, the securities in which they are placing those quotes, and the trades executed in those securities. Access to CTI is determined by and periodically reviewed by the CCO of BOATS. If Registered Representatives, NRF Personnel, or FI Personnel require access to CTI to do their jobs, access is given. If their jobs do not warrant access, access is denied. If their jobs no longer warrant access (as determined during periodic review), access is revoked.

### Part III: Manner of Operations

**1. Types of Subscribers:** Brokers, Dealers

**2a. Is a Subscriber required to be a registered broker-dealer?** Yes

**2b. Are there any other conditions for eligibility to become a Subscriber?** Yes

   - **Conditions:** The ATS allows as Subscribers those applicants who satisfy certain eligibility requirements. Specifically, Subscribers must meet the following requirements:

1. It is a U.S. Securities and Exchange Commission ("SEC") registered broker-dealer and a member in good standing of at least one self-regulatory organization.

2. Satisfy such technical or systems requirements as may be prescribed by BOATS, including but not limited to connectivity certification, the ability to send orders and cancellations, and to receive trades, cancellations, rejects and trade breaks from the ATS.

3. Have clearing and settlement systems and/or arrangements in place to support participation on the ATS, which would include clearing or accepting clearing of securities through RQD* Clearing, LLC (NSCC # 4305), BOATS' clearing firm, and has in place relevant documentation to establish this clearing relationship.

4. Execute the Subscriber Agreement.

5. Execute an appropriate "give-up" agreement to establish an "on behalf of" reporting relationship (e.g., an executed Uniform Trade Reporting Facility Service Bureau/Executing Broker Agreement or Nasdaq AGU/Attachment 2 Agreement).

6. It has completed that ATS's onboarding process (e.g., satisfied BOATS' KYC/AML review, passed OFAC checks, passed a disciplinary review, executed all pertinent agreements).

BOATS shall, after receiving a completed Subscriber Agreement and any additional documentation requested, in its discretion, approve or reject such application, or approve such application subject to such conditions and/or restrictions as it considers appropriate (e.g., potentially limiting the number of orders a Subscriber may send). It processes all applications and completes its review and approval/denial process within a timely manner of receipt of each completed Subscriber application. Each approval or denial must be authorized by the BOATS Managing Director/CCO. Trading Operations shall then promptly notify the applicant of the decision.

BOATS creates and maintains records of all such decisions granting access, denying access, and granting limited or restricted access, for each applicant, and the reasons for so doing.

7. Comply with credit risk controls, as described in Part III, Item 7.

**2c. Are the conditions for eligibility the same for all persons?** —

**2d. Is there a written agreement required to use the ATS?** Yes

**3a. Are there any conditions under which a Subscriber may be excluded?** Yes

   - **Conditions:** A Subscriber can be excluded from the ATS if the Subscriber no longer satisfies the eligibility requirements for acceptance as a Subscriber.

Additionally, the operation of the ATS is continuously monitored by the ATS's trading operations team ("Trading Operations") to ensure the smooth and correct functioning of the system as well as adherence to the ATS's operating procedures and the applicable securities rules and regulations. Trading Operations can monitor order entry port status, order acknowledgement latency, and market data quality, in addition to detailed metrics on order entry rates, open and executed exposures, and executed volumes.
Trading Operations monitors to determine whether Subscribers are  sending orders in excess of 100 orders per second or a single order with notional value greater than $5 million. Any orders entered in excess of these limits is rejected by the ATS, and Subscribers/Sponsored Access Clients are reminded of the limits.

In addition to real-time monitoring, Trading Operations reviews any  anomalies in the activities of the ATS using end-of-day reports. These reports include T+1 clearing breaks and same entity crosses. In the event one of the preceding occurs, Trading Operations may, among other actions, halt the activity of a Subscriber or set of Subscribers and/or an NMS Stock or set of NMS Stocks in order to contain the impact of a problem while pursuing a resolution.

BOATS may also exclude a Subscriber from trading on the ATS if, in the sole discretion of BOATS, the Subscriber may cause a breach of the Subscriber Agreement or if such exclusion is necessary to comply with applicable law. BOATS may also exclude a Subscriber's Sponsored Access Client(s) from trading on the ATS through the Subscriber if, in the sole discretion of BOATS, the Sponsored Access Client(s) may cause a breach of the Subscriber Agreement or if such exclusion is necessary to comply with applicable law.

**3b. Are these conditions the same for all Subscribers?** —

**4a. Hours of Operation:**
Dates and Hours of Operation

BOATS operates each evening before the NYSE Trade Reporting Facility ("TRF") is open so that trades executed on the ATS can be reported.

Subscribers/sponsored access clients may submit orders to the ATS at 6:15 p.m. ET on the days of operation of the ATS. Matching in NMS Stocks on the ATS occurs from 8:00 p.m. to 4:00 a.m. ET the following day, i.e., during Operating Hours, if the TRF is open for trade reporting on that following day. For example, the ATS operates from Sunday evening at 8:00 p.m. until 4:00 a.m. ET on Monday, and trades executed during that session are reported to the TRF before 8:15 a.m. ET on that Monday. However, the ATS does not conduct a trading session beginning at 8:00 p.m. ET on Friday, because the TRF is not available for the reporting of trades on Saturday. Likewise, there is no trading session on Christmas Eve because the TRF is not open on Christmas, but there could be an overnight trading session beginning on Christmas night if the TRF is open and available for trade reporting on the following day.

**4b. Are the hours of operation the same for all Subscribers?** Yes

**5a. Are Subscribers permitted to enter orders and other messages by electronic means?** Yes

   - **Protocols:** General Operation of the ATS

Subscribers access BOATS via a Financial Information Exchange ("FIX") connection. Such access is available to Subscribers through an internet protocol address via communications that are compliant with the FIX API provided by the ATS. The ATS supports FIX 4.2.

Sponsored Access Clients access BOATS through their sponsoring Subscriber.

BOATS only accepts orders via FIX. It does not accept orders via telephone, email, instant message, or other form of communication.

BOATS does not route orders away from the ATS; BOATS does not support the routing of orders to any other venue.

**5b. Are these protocols the same for all Subscribers?** —

**5c. Are there any other means to enter orders?** —

**5d. Are the terms and conditions for other means the same for all Subscribers?** —

**6a. Are co-location services offered?** —

**6c. Are any other means offered that reduce the latency of communications?** No

**6e. Are any other means offered that reduce the latency of communications between the ATS and its Subscribers?** No

**7a. Order Types and Attributes:**
Order Types

BOATS only accepts limit day orders ("orders"). An order that is posted on the ATS and immediately executed (matched with a contra interest) against an order that was previously posted on the ATS is referred to as a "marketable" order; the order that was previously posted on the ATS is referred to as a "resting" order.

For example:

ORDER A: tagged with identifier CLIENT1, a LIMIT DAY buy  order to buy 500 shares of ABC @ $10 is entered in the system at 11:00 p.m.;

ORDER B: tagged with identifier CLIENT2, a LIMIT DAY sell  order to sell 500 shares of ABC @ $11 is entered in the system at 11:01 p.m.;

ORDER A and ORDER B are "resting" orders i.e., they are posted on the ATS and they are awaiting a contra interest;

ORDER C: tagged with identifier CLIENT3, a LIMIT DAY sell order to sell 500 shares of ABC @ $10 is entered in the system at 11:02 p.m.;

ORDER C is immediately executed (matched with a contra interest) @ $10 at 11:02 p.m. against resting ORDER A;

ORDER C is a marketable order

ORDER B remains resting on the ATS and will be held on the ATS until the end of the session, until the order is canceled, or until it is executed (matched with a contra interest)

All orders on the ATS order book are canceled at the end the trading session.

The only time-in-force instruction accepted by the ATS is DAY.
Routing
Orders are not routed away from BOATS. Message Priority
Incoming orders and related messages e.g., cancellations, etc. are processed in the order in which they are received by the ATS.

Match Priority

Orders are time-stamped to the millisecond by the ATS upon receipt, as are cancel/replaces. Orders are matched by the ATS on a price/time priority basis, with the exception of orders entered as "broker priority." Orders that are entered as "broker priority" are matched by the ATS on a price/broker/time priority basis.

A Subscriber/Sponsored Access Client elects broker priority for all transactions, not on a transaction-by-transaction basis. Broker priority is never a default setting on BOATS. If a Subscriber/Sponsored Access Client elects broker priority and enters both buy and sell orders for the same NMS Stock to the ATS, those orders are matched against each other, absent a better- priced order. If there is a better-priced order on the ATS, the broker priority order executes against the better-priced order. The orders of a Subscriber/Sponsored Access Client that has not elected broker priority, but that enters both buy and sell orders in the same NMS Stock into the ATS are matched against each other, but only if there is not an existing order on the order book at the same or a better price. For example, assume the ATS receives the following orders:

-	ORDER A: tagged with identifier CLIENT1, a LIMIT DAY buy  order to buy 500 shares of ABC @ $15.10 at 11:00 p.m.;

-	ORDER B: tagged with identifier CLIENT2, a LIMIT DAY buy  order to buy 550 shares of ABC @ $15.10 at 11:01 p.m.;

-	ORDER C: tagged with identifier CLIENT3, a LIMIT DAY buy  order to buy 600 shares of ABC @ $15.10 at 11:02 p.m.;

-	ORDER D: tagged with identifier CLIENT3, a LIMIT DAY buy  order to buy 100 shares of ABC @ $15.10 at 11:03 p.m.; and

-	ORDER E: tagged with identifier CLIENT3, a LIMIT DAY sell order  to sell 800 shares of ABC @ $15.10 at 11:04 p.m.

Where CLIENT 3 has elected broker priority, Order E is matched, based on broker priority, first with Order C and Order D (based on time priority) and the balance of 100 is matched, based on price- time priority, against Order A.

Because the ATS's Operating Hours (8 p.m. ET to 4 a.m. ET) are after the Core Market Hours (9:30 a.m. ET to 4 p.m. ET, Monday through Friday), trades executed on the ATS are not priced according to and do not relate to the NBBO, which is not available during the Operating Hours. Rather, reference prices for trades executed on the ATS are based on the best available bid and offer on the ATS at the time of the trade.
Order Cancellation and Amendment

All orders entered into BOATS are considered firm orders. An order  is actionable and eligible for execution at any time until such order has expired by its terms, is canceled, or is executed and, when executed, is binding on the Subscriber placing the order (executed orders entered by Sponsored Access Clients are binding against the Subscriber providing sponsored access because BOATS' contractual relationship is with the Subscriber providing sponsored access, not the Sponsored Access Client). Subscribers/Sponsored Access Clients may cancel their pending orders at any time before execution at their discretion.

A reduction in an order's size through a cancel/replace instruction does not affect the order's original time priority. Changes that increase an orders size cause the order to lose priority to existing orders at the same price and result in a new time priority. A change in an order's price, however, results in a new time priority being assigned to the order.

Orders are rejected if they contain instructions or order attributes that are not supported by the ATS, such as an invalid stock symbol. Subscribers are also subject to pre-trade credit and risk controls to prevent certain orders from reaching the ATS. Each Subscriber is subject to a daily notional value limit, a maximum notional value per order, a maximum quantity per order, a maximum number of orders per second, and a maximum number of duplicate orders (same ticker symbol, size, side, order type and price). The CCO or his or her designee determines the limits for each Subscriber based on a credit risk assessment before the Subscriber is permitted to commence trading on the ATS. These controls reject Subscriber orders that exceed pre-set credit thresholds or that contain a sub- penny price, among others.

Required Fields
-	Sending time (Time of order creation expressed in UTC)
-	Client Order ID (unique identifier per order/per session)

-	Side (Buy, Sell, Sell Short, Sell Short Exempt)
-	Symbol

-	Time In Force = DAY

-	Order Type = Limit

-	Price

**7b. Are the order types, attributes, and instructions the same for all Subscribers?** —

**8a. Does the ATS require a minimum or maximum order size?** —

**8c. Are odd-lot orders accepted and executed?** Yes

   - **Procedures:** Odd lot orders are handled in the same manner as round lot orders and have the same priority treatment

**8d. Are odd-lot procedures the same for all Subscribers?** Yes

**8e. Are mixed-lot orders accepted and executed?** Yes

   - **Procedures:** Mixed lot orders are treated the same as round lot and odd-lot orders and have the same priority treatment.

**8f. Are mixed-lot procedures the same for all Subscribers?** Yes

**9a. Does the ATS send any messages to indicate trading interest?** No

**10a. Opening/Re-opening/Closing Procedures:**
Subscribers/Sponsored Access Clients may enter orders beginning at 6:15 p.m. ET on the days that the ATS is open for business.
BOATS begins matching orders, based on the terms of the orders  in its order book, at 8:00 p.m. ET.

BOATS employs a 15% price band at the open of its trading session. If orders entered into the ATS prior to the beginning of trading and at the open are priced at more than 15% away from the reference price for that NMS Stock, the ATS rejects the order. The reference price for the open is the last national securities exchange print, post session, as of 7:30 p.m. ET.

Orders are prioritized based on the price and time of entry of such orders into the ATS. Once an order has been submitted, the ATS matches it with a matching contra order submitted to the ATS, generally on a price/time priority basis. Similarly, the orders of a Subscriber/Sponsored Access Client that has elected broker priority and that enters simultaneous buy and sell orders to the ATS are matched against each other, but only if there is not an order on the ATS order book at a better price. The orders of an ATS Subscriber/Sponsored Access Client that has not elected broker priority and that enters simultaneous buy and sell orders to the ATS are matched against each other, but only if there is not an existing order on the ATS order book at the same or a better price.

Because the ATS does not operate during Core Market Hours, it is not impacted by trading halts in an NMS Stock during Core Market Hours. If trading in an NMS Stock that trades on BOATS is halted as of the close of the exchange trading day, the ATS does not trade that NMS Stock during its immediately following trading session.

If trading in an NMS Stock is halted on BOATS during the ATS's trading session, the ATS notifies its Subscribers of the halt (Subscribers must inform their Sponsored Access Clients of the halt). The ATS cancels all orders for the effected NMS Stock pending on the ATS's order book at the time the ATS halts trading. Such orders are automatically cancelled based on a configuration in Subscribers' FIX connections. Once the ATS lifts the halt, BOATS sends a notification to Subscribers that trading is once again available on the ATS and that they may enter orders (Subscribers must provide this notification to Sponsored Access Clients). Those orders are matched based on the price/time priority rules of BOATS, subject to broker priority, if applicable.

**10b. Are these procedures the same for all Subscribers?** Yes

**10c. Unexecuted Orders Procedures:**
All orders on the ATS order book are canceled at the end the trading session. Thus, there are no unexecuted orders from the close of the ATS's prior trading session when BOATS begins its regular trading at 8:00 p.m. ET.

Because BOATS does not operate during Core Market Hours, exchange trading halts do not impact trading on the ATS unless such a trading halt remains in effect upon the close of Core Market Hours. If trading in a particular NMS stock is halted on an exchange as of the close of trading, the ATS does not trade that NMS Stock during its immediately following overnight trading session, as discussed in Part III, Item 7.

If trading in an NMS Stock is halted on BOATS during its Operating Hours, the ATS notifies its Subscribers of the halt (Subscribers must inform Sponsored Access Clients of the halt). The ATS cancels all orders for the effected NMS Stock pending on the ATS's order book at the time the ATS halts trading.

Once the ATS lifts the halt, BOATS sends a notification to Subscribers that trading is once again available on the ATS and that they may enter orders (Subscribers must provide this notification to Sponsored Access Clients). Those orders are matched based on the price/time priority rules of BOATS, subject to broker priority, if applicable.

**10d. Is there any difference in execution procedures during trading hours?** Yes

**10e. Is there any difference in pre-opening or execution procedures following a stoppage?** No

**11a. Structure of the NMS Stock ATS:**
BOATS operates a fully automated electronic limit order book that continuously matches orders to buy or sell NMS Stocks. All NMS stocks are eligible to trade on the ATS. All orders submitted to the ATS are firm, and are  eligible for automatic execution by the system, consistent with the instructions and conditions indicated on the order as submitted by Subscribers/Sponsored Access Clients. Matching occurs on a price-time priority basis, subject to broker priority, if applicable. As discussed in Part III, Item 4(a), the Operating Hours are after Core Market Hours.

Subscribers/Sponsored Access Clients generate orders in securities eligible for trading on the ATS and send these orders electronically to the BOATS FIX order gateway ("Gateway"). The Gateway directs all orders to the BOATS matching engine. BOATS applies broker priority if elected by the Subscriber/Sponsored Access Client, as discussed in Part III, Item 7. The BOATS matching engine operates on a server in Equinix NY4 data center. Equinix maintains the server in a locked "cage" that is accessible only by such personnel as indicated in Part II, Item 7.

Blue Ocean ATS, LLC licenses the matching engine software and related technology from Fundamental Interactions Inc. via a sub- licensing agreement with Blue Ocean Technologies, LLC - the parent company of the ATS operator.

**11b. Are the means that facilitate access the same for all Subscribers?** —

**11c. Rules and procedures of the NMS Stock ATS:**
Matching - The ATS accepts only orders from Subscribers (Sponsored Access Clients may submit orders to the ATS through their sponsoring Subscriber). The ATS matches orders solely in accordance with the terms of those orders; BOATS does not have any discretion to change the terms of an order that a Subscriber/ Sponsored Access Client enters. During its Operating Hours, the ATS matches orders in its order book on price-time priority basis, subject to broker priority, if applicable, as described in Part III, Item
7. Orders retain their priority after partial fills. Orders submitted to the ATS are time-stamped to the millisecond upon receipt for prioritization purposes and for OATS and CAT reporting purposes.

For example:

ORDER A: tagged with identifier CLIENT1, a LIMIT DAY buy  order to buy 500 shares of ABC @ $10 is entered in the system at 11:00 p.m.;

ORDER B: tagged with identifier CLIENT2, a LIMIT DAY sell  order to sell 500 shares of ABC @ $11 is entered in the system at 11:01 p.m.;

ORDER C: tagged with identifier CLIENT3, a LIMIT DAY sell order to sell 1000 shares of ABC @ $10 is entered in the system at 11:02 p.m.;

ORDER C is immediately executed (matched with a contra interest) for 500 shares of ABC @ $10 at 11:02 p.m. against resting ORDER A;

The remaining (unexecuted) 500 shares of ORDER C remain on the ATS offered @ $10 at 11:02 p.m., and ORDER B's sell order to sell 500 shares of ABC @ $11 remains on the ATS at 11:02 p.m.;

Both ORDER C and ORDER B are resting orders on the ATS at 11:02 p.m.

Locked or Crossed Markets - All orders entered during the Operating Hours reside only on the BOATS order book. A buy order priced at or above the best offer, or sell order priced at or below the best bid, therefore result in executions, not locked or crossed markets.

For example:

ORDER A: tagged with identifier CLIENT1, a LIMIT DAY buy  order to buy 500 shares of ABC @ $10 is entered in the system at 11:00 p.m.;

ORDER B: tagged with identifier CLIENT2, a LIMIT DAY sell  order to sell 500 shares of ABC @ $11 is entered in the system at 11:01 p.m.;

ORDER C: tagged with identifier CLIENT3, a LIMIT DAY sell order to sell 1000 shares of ABC @ $9 is entered in the system at 11:02 p.m.;

ORDER C is immediately executed (matched with a contra interest) for 500 shares of ABC @ $10 at 11:02 p.m. against resting ORDER A;

The remaining (unexecuted) 500 shares of ORDER C remain on the ATS offered @ $9 at 11:02 p.m., and ORDER B's sell order to sell 500 shares of ABC @ $11 remains on the ATS at 11:02 p.m.;

Both ORDER C and ORDER B are resting orders on the ATS at 11:02 p.m.

Execution Errors - Blue Ocean ATS, LLC has written supervisory policies and procedures in place to handle trade execution errors and "clearly erroneous trades" and handles Subscriber and ATS errors in the same manner. Each potential error situation is evaluated by the Managing Director and/or CCO or designated Trading Operations personnel on a case by-case basis to determine whether a trade execution should be busted. A transaction executed on the ATS shall be found to be clearly erroneous if the price of the transaction to buy (sell) that is the subject of the inquiry is greater than (less than) the reference price by 6% for NMS Stocks priced greater than $50; 10% for NMS Stocks priced greater than $25 and up to and including $50; and 20% for NMS Stocks priced greater than $0 and up to and including$25. The reference price for the clearly erroneous policy is the most recent transaction effected on the ATS.

Order Entry Restrictions - The ATS does not accept orders that reference a symbol not authorized for trading (e.g., if there is a trading halt). Consistent with Rule 612 of Regulation NMS under the Exchange Act, the minimum price increment for orders received by the ATS shall be $0.01 for orders priced $1.00 or greater, and
$0.0001 for orders priced below $1.00. Orders received with price increments below the preceding are rejected. Sell orders must be designated as long, short or short exempt in the event there is a short sale restriction in place. Subscribers are responsible for the compliance of their trades with all short sale locate and delivery rules and regulations.

**11d. Are these rules and procedures the same for all Subscribers?** Yes

**12a. Are there any arrangements to provide liquidity?** —

**13a. Is order or trading interest segmented?** —

**13b. Is the segmentation the same for all Subscribers?** —

**13c. Does segmentation depend on whether the order is from a customer?** No

**13d. Are segmentation categories disclosed to Subscribers?** —

**13e. Is the disclosure the same for all Subscribers?** —

**14a. Is a Subscriber designated to interact with specific trading interest?** Yes

   - **Details:** As described in Part III, Item 7, a Subscriber (or its Sponsored Access Client) can choose broker priority, where the Subscriber's (or its Sponsored Access Client's) orders interact with its own contra orders for the same NMS Stock at the same price.

The ATS's matching engine respects that preference unless resting orders in the ATS's order book are better priced. A Subscriber (or its Sponsored Access Client) that chooses broker priority cannot designate that its orders execute or not execute against the orders of other specified Subscribers (or its Sponsored Access Clients) if such orders are better priced. For example, Subscriber A cannot designate its order to execute against/not execute against Subscriber B's orders.

**14b. Is the counter-party selection the same for all Subscribers?** —

**15a. Does the ATS use electronic communications to display order and trading interest?** No

**15b. Is order and trading interest displayed to anyone other than Subscribers?** Yes

   - **Details:** The direct market data feeds deliver market data during the operating hours of the ATS (8:00 p.m.- 4:00 a.m. EDT).

Subscribers, Sponsored Access Clients, and Third-Party Distributors who take the BOT direct market data feed may take that data directly into their order or execution management systems. Third-Party Distributors include vendors, service bureaus or service providers that consume or redistribute market data. BOT provides market data that includes Top of Book and Full Depth of Book for all symbols traded on the ATS during the session.

Recipients of direct market data feeds are NOT required to be a Subscriber or Sponsored Access Client of BOATS.
BOT also utilizes FI Technology and software to transmit direct market data feeds from the BOATS data center in Equinix NY4.

**15c. Are the display procedures the same for all Subscribers?** —

**16a. Are orders or other messages routed out of the ATS?** No

**17a. Is there any difference between the treatment of order and trading interest based on source?** No

**17b. Is the treatment the same for all Subscribers?** Yes

**18a. Does the ATS execute trades outside of its regular trading hours?** No

**19a. Fees:**
BOATS charges Subscribers a negotiated per-executed-share-fee for shares executed on the NMS Stock ATS regardless of whether the Subscriber or its Sponsored Access Client enters the orders underlying the transactions. That is, BOATS only charges Subscribers. This fee may be in the form of a rebate (for adding liquidity to the ATS i.e., posting orders to the ATS which are not immediately executed against trading interest already on the ATS) or a charge (for taking liquidity i.e., posting orders to the ATS which are immediately executed against trading interest already on the ATS). Negotiated per-executed share fees range from ($.0027) for adding liquidity to $.0030 for taking liquidity. All Subscribers are charged appropriate pass through fees which are permitted under the rules promulgated by the SEC and FINRA.

BOT leverages Third-Party Distributors to deliver market data to recipients. BOT charges Subscribers and Sponsored Access Clients for market data. Depending on setup costs, recurring fees, and technology integration costs, BOT incurs costs to fully integrate its direct market data feed into the Third-Party Distributors platform. BOT charges $12,500 for the Third-Party Distributors and charges $5,000 for receiving market data directly from BOT (i.e., Subscribers and Sponsored Access Clients) (see Part II, Item 5 and Part III, Item 15).

**19b. Bundled Services/Fees:**
N/A

**19c. Rebates and Discounts:**
Early adoption of BOATS, historical trading volume, and expected future trading volume are all factors in determining the negotiated per-executed share fees for Subscribers described in Item 19(a). Rebates (for adding liquidity) range from ($.0001) to ($.0027).

**20a. Suspension of Trading Procedures:**
If trading in an NMS Stock is halted on BOATS during the Operating Hours, the ATS notifies its Subscribers of the halt (Subscribers must inform Sponsored Access Clients of the halt). The ATS cancels all orders for the effected NMS Stock pending on the ATS's order book at the time the ATS halts trading. Once the ATS lifts the halt, BOATS sends a notification to Subscribers that trading is once again available on the ATS and that they may enter orders (Subscribers must provide this notification to Sponsored Access Clients). Those orders are matched based on the price/time  priority rules of BOATS, subject to broker priority, if applicable.

Because the ATS executes NMS Stocks after Core Market Hours, exchanges or regulatory authorities typically do not impose trading halts during the ATS's Operating Hours. An exchange or regulatory authority, however, may suspend trading in a security outside of an exchange's Core Market Hours in limited circumstances. If trading in a particular NMS Stock is halted on an exchange during the exchange's regular trading day and such halt remains in force at the market close, or if trading is suspended outside of an exchange's Core Market Hours, the ATS does not trade that NMS Stock during its immediately following overnight trading session until the halt is lifted. See Part III, Item 10(a) for additional discussion.

**20b. Are these procedures the same for all Subscribers?** Yes

**21a. Trade Reporting Arrangements:**
BOATS maintains daily summaries of trading and time-sequenced records of order information, including the date and time the order was received, the date, time, and price at which the order was executed, and the identity of the parties to the transaction.

Trades executed by the ATS are reported by 8:15 a.m. ET on the next business day because the ATS only executes trades during the overnight session. ATS trades in NMS Stocks are reported to the NYSE TRF and printed with BOATS' Market Participant Identifier (BLUE) as executing broker.

**21b. Are these arrangements the same for all Subscribers?** Yes

**22a. Clearance and Settlement Arrangements:**
BOATS' clearing firm is RQD* Clearing, LLC (NSCC # 4305). RQD* Clearing, LLC is a participant in the National Securities Clearing Corporation, which clears equity transactions, and The Depository Trust Company ("DTC"), which facilitates settlement of equity and other types of securities. BOATS provides trade information to RQD* in an end-of-day format for clearing purposes. RQD* submits the trade information to NSCC to facilitate settlement. Settlement of trades executed on the ATS occurs through the Continuous Net Settlement (CNS) system operated by DTC and generally settle on the second day after the trade.

A Subscriber must execute appropriate "give-up" agreements to establish an "on behalf of" reporting relationship (e.g., an executed Uniform Trade Reporting Facility Service Bureau/Executing Broker Agreement or Nasdaq AGU/Attachment 2 Agreement).

BOATS executes trades solely in an agency cross capacity. It does not become counterparty to any Subscriber trades.

**22b. Are these arrangements the same for all Subscribers?** —

**23a. Market Data Sources:**
BOATS obtains last print data from OneMarketData LLC that provides a reference price as of 7:30 p.m. ET on each trading day for each NMS Stock that trades on the ATS. That reference price is the last sale price for each security printed on a national securities exchange. BOATS receives halt information from exchange member alerts.

**23b. Are these sources the same for all Subscribers?** Yes

**24a. Does the ATS aggregate Subscriber order and trading interest with that of other trading centers?** No

**25a. Did the ATS exceed the volume thresholds of Regulation ATS?** No

**26. Are order flow and execution statistics published?** No

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