Nasdaq submitted a rule proposal to adopt a limited exemption from the Order Audit Trail System (OATS) requirements for bona fide hedging transactions in Nasdaq-listed securities that are part of a Nasdaq member’s market making activity in options. The proposed OATS exemption would apply to options market making on any options exchange in any standardized option made available for clearing through the Options Clearing Corporation. According to Nasdaq, because bona fide hedging transactions in equity securities executed by options market makers do not involve customer orders, requiring submission of bona fide hedging transactions in equity securities to OATS does not provide sufficient customer protection or equivalent regulatory benefit to justify the associated expense of reporting. In addition, Nasdaq noted that the relevant information is captured by and available through Nasdaq’s electronic delivery system upon request.  

http://www.sec.gov/rules/sro/nasdaq/2008/34-59163.pdf