diff --git a/c/makeotf/makeotf_lib/api/hotconv.h b/c/makeotf/makeotf_lib/api/hotconv.h
index 829e5d696..3b69498fe 100644
--- a/c/makeotf/makeotf_lib/api/hotconv.h
+++ b/c/makeotf/makeotf_lib/api/hotconv.h
@@ -11,7 +11,7 @@ This software is licensed as OpenSource, under the Apache License, Version 2.0.
 extern "C" {
 #endif
 
-#define HOT_VERSION 0x01006C /* Library version (1.0.108) */
+#define HOT_VERSION 0x01006D /* Library version (1.0.109) */
 /* 	Major, minor, build = (HOT_VERSION >> 16) & 0xff, (HOT_VERSION >> 8) & 0xff, HOT_VERSION & 0xff) */
 /*Warning: this string is now part of heuristic used by CoolType to identify the
 first round of CoolType fonts which had the backtrack sequence of a chaining 
diff --git a/c/makeotf/makeotf_lib/source/hotconv/GSUB.c b/c/makeotf/makeotf_lib/source/hotconv/GSUB.c
index f9595b9ff..41c4f0a22 100644
--- a/c/makeotf/makeotf_lib/source/hotconv/GSUB.c
+++ b/c/makeotf/makeotf_lib/source/hotconv/GSUB.c
@@ -2228,8 +2228,7 @@ static Label addAnonRule(hotCtx g, GSUBCtx h, GNode *pMarked, unsigned nMarked,
         int i = h->anonSubtable.cnt;
 
         si = dnaINDEX(h->anonSubtable, i - 1);
-        /* Don't need to match lkpFlag */
-        if (si->lkpType == lkpType && addToAnonSubtbl(g, h, si, targCp, replCp)) {
+        if ((si->lkpType == lkpType) && (si->lkpFlag == lkpFlag) && (si->markSetIndex == markSetIndex) && addToAnonSubtbl(g, h, si, targCp, replCp)) {
             return si->label;
         }
     }
diff --git a/tests/makeotf_data/expected_output/bug196.ttx b/tests/makeotf_data/expected_output/bug196.ttx
new file mode 100644
index 000000000..6c483abff
--- /dev/null
+++ b/tests/makeotf_data/expected_output/bug196.ttx
@@ -0,0 +1,137 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<ttFont sfntVersion="OTTO" ttLibVersion="3.29">
+
+  <GSUB>
+    <Version value="0x00010000"/>
+    <ScriptList>
+      <!-- ScriptCount=1 -->
+      <ScriptRecord index="0">
+        <ScriptTag value="DFLT"/>
+        <Script>
+          <DefaultLangSys>
+            <ReqFeatureIndex value="65535"/>
+            <!-- FeatureCount=1 -->
+            <FeatureIndex index="0" value="0"/>
+          </DefaultLangSys>
+          <!-- LangSysCount=0 -->
+        </Script>
+      </ScriptRecord>
+    </ScriptList>
+    <FeatureList>
+      <!-- FeatureCount=1 -->
+      <FeatureRecord index="0">
+        <FeatureTag value="test"/>
+        <Feature>
+          <!-- LookupCount=3 -->
+          <LookupListIndex index="0" value="0"/>
+          <LookupListIndex index="1" value="1"/>
+          <LookupListIndex index="2" value="2"/>
+        </Feature>
+      </FeatureRecord>
+    </FeatureList>
+    <LookupList>
+      <!-- LookupCount=5 -->
+      <Lookup index="0">
+        <LookupType value="6"/>
+        <LookupFlag value="16"/>
+        <!-- SubTableCount=1 -->
+        <ChainContextSubst index="0" Format="3">
+          <!-- BacktrackGlyphCount=0 -->
+          <!-- InputGlyphCount=1 -->
+          <InputCoverage index="0" Format="1">
+            <Glyph value="a"/>
+          </InputCoverage>
+          <!-- LookAheadGlyphCount=2 -->
+          <LookAheadCoverage index="0" Format="2">
+            <Glyph value="a"/>
+            <Glyph value="b"/>
+            <Glyph value="c"/>
+          </LookAheadCoverage>
+          <LookAheadCoverage index="1" Format="1">
+            <Glyph value="b"/>
+          </LookAheadCoverage>
+          <!-- SubstCount=1 -->
+          <SubstLookupRecord index="0">
+            <SequenceIndex value="0"/>
+            <LookupListIndex value="3"/>
+          </SubstLookupRecord>
+        </ChainContextSubst>
+        <MarkFilteringSet value="0"/>
+      </Lookup>
+      <Lookup index="1">
+        <LookupType value="6"/>
+        <LookupFlag value="16"/>
+        <!-- SubTableCount=1 -->
+        <ChainContextSubst index="0" Format="3">
+          <!-- BacktrackGlyphCount=0 -->
+          <!-- InputGlyphCount=1 -->
+          <InputCoverage index="0" Format="1">
+            <Glyph value="b"/>
+          </InputCoverage>
+          <!-- LookAheadGlyphCount=2 -->
+          <LookAheadCoverage index="0" Format="2">
+            <Glyph value="a"/>
+            <Glyph value="b"/>
+            <Glyph value="c"/>
+          </LookAheadCoverage>
+          <LookAheadCoverage index="1" Format="1">
+            <Glyph value="c"/>
+          </LookAheadCoverage>
+          <!-- SubstCount=1 -->
+          <SubstLookupRecord index="0">
+            <SequenceIndex value="0"/>
+            <LookupListIndex value="4"/>
+          </SubstLookupRecord>
+        </ChainContextSubst>
+        <MarkFilteringSet value="1"/>
+      </Lookup>
+      <Lookup index="2">
+        <LookupType value="6"/>
+        <LookupFlag value="16"/>
+        <!-- SubTableCount=1 -->
+        <ChainContextSubst index="0" Format="3">
+          <!-- BacktrackGlyphCount=2 -->
+          <BacktrackCoverage index="0" Format="2">
+            <Glyph value="a"/>
+            <Glyph value="b"/>
+            <Glyph value="c"/>
+          </BacktrackCoverage>
+          <BacktrackCoverage index="1" Format="1">
+            <Glyph value="a"/>
+          </BacktrackCoverage>
+          <!-- InputGlyphCount=1 -->
+          <InputCoverage index="0" Format="1">
+            <Glyph value="c"/>
+          </InputCoverage>
+          <!-- LookAheadGlyphCount=0 -->
+          <!-- SubstCount=1 -->
+          <SubstLookupRecord index="0">
+            <SequenceIndex value="0"/>
+            <LookupListIndex value="4"/>
+          </SubstLookupRecord>
+        </ChainContextSubst>
+        <MarkFilteringSet value="1"/>
+      </Lookup>
+      <Lookup index="3">
+        <LookupType value="1"/>
+        <LookupFlag value="16"/>
+        <!-- SubTableCount=1 -->
+        <SingleSubst index="0" Format="1">
+          <Substitution in="a" out="c"/>
+        </SingleSubst>
+        <MarkFilteringSet value="0"/>
+      </Lookup>
+      <Lookup index="4">
+        <LookupType value="1"/>
+        <LookupFlag value="16"/>
+        <!-- SubTableCount=1 -->
+        <SingleSubst index="0" Format="2">
+          <Substitution in="b" out="b"/>
+          <Substitution in="c" out="a"/>
+        </SingleSubst>
+        <MarkFilteringSet value="1"/>
+      </Lookup>
+    </LookupList>
+  </GSUB>
+
+</ttFont>
diff --git a/tests/makeotf_data/input/bug196/bug196.fea b/tests/makeotf_data/input/bug196/bug196.fea
new file mode 100644
index 000000000..5e5da152b
--- /dev/null
+++ b/tests/makeotf_data/input/bug196/bug196.fea
@@ -0,0 +1,28 @@
+languagesystem DFLT dflt;
+
+@base_glyphs = [a b c];
+
+@above_base = [caron caron.alt];
+@below_base = [commabelowcmb brevebelowcmb];
+
+feature test {
+
+    lookup one {
+        lookupflag UseMarkFilteringSet @above_base;
+
+        sub a' @base_glyphs b by c;
+    } one;
+
+    lookup two {
+        lookupflag UseMarkFilteringSet @below_base;
+
+        sub b' @base_glyphs c by b;
+    } two;
+    
+    lookup three {
+        lookupflag UseMarkFilteringSet @below_base;
+
+        sub a @base_glyphs c' by a;
+    } three;
+
+} test;
diff --git a/tests/makeotf_data/input/bug196/bug196.pfa b/tests/makeotf_data/input/bug196/bug196.pfa
new file mode 100644
index 000000000..84a24f5d4
--- /dev/null
+++ b/tests/makeotf_data/input/bug196/bug196.pfa
@@ -0,0 +1,94 @@
+%!FontType1-1.1: SourceSerifPro-Regular 1.0
+%ADOt1write: (1.0.34)
+%%BeginResource: font SourceSerifPro-Regular
+12 dict dup begin
+/FontType 1 def
+/FontName /SourceSerifPro-Regular def
+/FontInfo 7 dict dup begin
+/version (1.0) def
+/Notice (Source is a trademark of Adobe Systems Incorporated in the United States and/or other countries.) def
+/Copyright (Copyright 2014 Adobe Systems Incorporated. All Rights Reserved.) def
+/FamilyName (Source Serif Pro) def
+end def
+/PaintType 0 def
+/FontMatrix [0.001 0 0 0.001 0 0] def
+/Encoding 256 array
+0 1 255 {1 index exch /.notdef put} for
+def
+/FontBBox {-151 -251 560 740} def
+end
+currentfile eexec BAB431EA06BB0A1031E1AA11919E714AC69FC6474167B6
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diff --git a/tests/makeotf_test.py b/tests/makeotf_test.py
index 440af20b1..e16ab4c8f 100755
--- a/tests/makeotf_test.py
+++ b/tests/makeotf_test.py
@@ -462,3 +462,17 @@ def test_bug497(opts):
                    '    <created value=' + SPLIT_MARKER +
                    '    <modified value=',
                    '-r', '^\s+Version.*;hotconv.*;makeotfexe'])
+
+
+def test_useMarkFilteringSet_flag_bug196():
+    input_filename = "bug196/bug196.pfa"
+    input_featurename = "bug196/bug196.fea"
+    actual_path = _get_temp_file_path()
+    ttx_filename = "bug196.ttx"
+    runner(CMD + ['-n', '-o',
+                  'f', '_{}'.format(_get_input_path(input_filename)),
+                  'ff', '_{}'.format(_get_input_path(input_featurename)),
+                  'o', '_{}'.format(actual_path)])
+    actual_ttx = _generate_ttx_dump(actual_path, ['GSUB'])
+    expected_ttx = _get_expected_path(ttx_filename)
+    assert differ([expected_ttx, actual_ttx, '-s', '<ttFont sfntVersion'])