NASDAQ OMX Group (NDAQ)

8. Restricted Cash

The Exchange has classified cash totaling $11,000 and $11,000 as restricted at March 31, 2008 and 2007, respectively, representing capital contributions from owners of exchange memberships used for funding technological improvements and other capital needs including principal payments with respect to certain loans, as more fully described in note K (Capital Contribution). The Exchange has classified cash totaling $2,650,000 and $307,000 as of March 31, 2008 and 2007, respectively, as restricted, representing funds collected from market makers and specialists for the purpose of making qualifying payments for order flow, as more fully described in note I (Payment for Order Flow). Additionally, the Exchange has classified $400,000 as restricted at March 31, 2008 and 2007, representing SCCP restricted cash, deposits and escrow amounts.

All SCCP participant funds are maintained in cash, cash equivalents, or short-term investments, except for amounts utilized to satisfy the Depository Trust and Clearing Corporation (DTCC) participant fund requirements with respect to SCCP’s omnibus clearance and settlement accounts. At March 31, 2008 and 2007, the participant funds were invested in overnight reverse repurchase agreements.

8. Restricted cash

PHLX has classified cash totaling approximately $11,000 and $11,000 as restricted at September 30, 2007 and 2006, respectively, representing capital contributions from owners of exchange memberships used for funding technological improvements and other capital needs including principal payments with respect to certain loans. PHLX has classified cash totaling approximately $203,000 and $5.1 million as of September 30, 2007 and 2006, respectively, as restricted, representing funds collected from market makers for the purpose of reimbursing applicable specialists in relation to qualifying payments for order flow. Additionally, PHLX has classified $511,000 and $430,000 as restricted at September 30, 2007 and 2006, respectively, representing SCCP restricted cash, deposits and escrow amounts. All SCCP participant funds are maintained in cash, cash equivalents, or short-term investments, except for amounts utilized to satisfy Depository Trust & Clearing Corporation (“DTCC”) participant fund requirements with respect to SCCP’s omnibus clearance and settlement accounts. At September 30, 2007 and 2006, the participant funds were invested in overnight reverse repurchase agreements.