When the physical device driver is enabled for this mode of operation, it stops sending data to the transmit hardware when an XOFF is received, and resumes sending data to the transmit hardware when an XON is received.

If this mode is enabled, Error Alerts can be generated when the OS/2 Logging Facility is enabled. If an external device sends an XOFF, but does not send an XON, transmission of data is blocked because the device driver is waiting for the XON to be received. If the XON is not received before the Write Timeout period expires, an Error Alert is generated.