Notice2025-16364
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend GEMX Options 3, Sections 7 and 9
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Published
August 27, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 164 (Wednesday, August 27, 2025)</title>
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[Federal Register Volume 90, Number 164 (Wednesday, August 27, 2025)]
[Notices]
[Pages 41858-41859]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16364]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103766; File No. SR-GEMX-2025-23]
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend GEMX
Options 3, Sections 7 and 9
August 22, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 15, 2025, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items II and III, below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Options 3, Section 7, Types of
Orders and Order and Quote Protocols, and Options 3, Section 9, Trading
Halts.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/gemx/rulefilings">https://listingcenter.nasdaq.com/rulebook/gemx/rulefilings</a>
and at the principal office of the Exchange.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Options 3, Section 7, Types of
Orders and Order and Quote Protocols, and Options 3, Section 9, Trading
Halts.
The Exchange proposes to amend Options 3, Section 7(v) to lowercase
``Block Order'' which is not capitalized in Options 3, Section 11(a).
The Exchange also proposes to amend Options 3, Section 7(w) to
lowercase ``Facilitation Order'' which is not capitalized in Options 3,
Section 11(b) and to add the term ``paired'' as a descriptive term to
signify that a facilitation order is a two-sided order. The addition of
the term ``paired'' will distinguish a Block Order, which is not two-
sided, from a paired facilitation order. Finally, the Exchange proposes
to amend Options 3, Section 7(x) to lowercase ``SOM Order'' which is
not capitalized in Options 3, Section 11(d) and also include the term
``paired'' to distinguish this two-sided auction. The addition of the
term ``paired'' will distinguish a Block Order, which is not two-sided,
from a paired SOM order.
The Exchange proposes to amend Options 3, Section 9(a)(2) to note
that ``During a halt, existing auction orders and auction responses, as
well as Crossing Orders, are rejected.'' Today, the GEMX System will
cancel auction orders, auction responses and Crossing Orders during a
trading halt. This sentence is being added to make clear the current
System behavior. Phlx has similar rule text in Options 3, Section
9(f).\3\
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\3\ Phlx Options 3, Section 9(f) provides, that during a halt,
the Exchange will maintain existing orders on the book (but not
existing quotes), except as noted in Options 5, Section 4, accept
orders and quotes, and process cancels. During a halt, existing
quotes are cancelled and auction orders and auction responses, as
well as Crossing Orders, are rejected. GEMX's current rule text at
Options 3, Section 9(a)(2) addresses the cancellation of quotes
during a trading halt in the last sentence, but does not address the
treatment of auction orders, auction responses and Crossing Orders
during a trading halt.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\4\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\5\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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The Exchange's proposal to amend Options 3, Section 7(v) to
lowercase ``Block Order,'' and amend Options 3, Section 7(w) and (x) to
lowercase ``Facilitation Order'' and ``SOM Order'' and add the term
``paired,'' are non-substantive amendments that are intended to provide
consistency between these defined terms and the use of these terms in
Options 3, Section 11(a), (b) and (d).
The Exchange's proposal to amend Options 3, Section 9(a)(2) to note
that ``During a halt, existing auction orders and auction responses, as
well as Crossing Orders, are rejected'' is consistent with the Act
because during a halt the System will not execute any auction orders,
auction responses and Crossing Orders received during a trading halt as
that interest will most likely become stale. This amendment represents
the System's current operation. The proposed rule text makes clear the
treatment of auction orders, auction responses and Crossing Orders
during a trading halt.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange's proposal to amend Options 3, Section 7(v) to
lowercase ``Block Order,'' and amend Options 3, Section 7(w) and (x) to
lowercase ``Facilitation Order'' and ``SOM Order'' and add the term
``paired'' does not impose any burden on intramarket or intermarket
competition because the proposed changes are non-substantive amendments
that are intended to provide consistency between these defined terms
and the use of these terms in Options 3, Section 11(a), (b) and (d).
[[Page 41859]]
The Exchange's proposal to amend Options 3, Section 9(a)(2) does
not impose any burden on intramarket competition because the Exchange
will cancel existing auction orders, auction responses and Crossing
Orders for all Members. The Exchange's proposal to amend Options 3,
Section 9(a)(2) does not impose any burden on intermarket competition
because the amendment represents the System's current operation and
Phlx treats auction orders, auction responses, and Crossing Orders in a
similar manner during a trading halt.\6\
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\6\ See supra note 3.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \7\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#4e3c3b222b632d2123232b203a3d0e3d2b2d60292138"><span class="__cf_email__" data-cfemail="1d6f687178307e7270707873696e5d6e787e337a726b">[email protected]</span></a>. Please include
file number SR-GEMX-2025-23 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-GEMX-2025-23. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection.
All submissions should refer to file number SR-GEMX-2025-23 and
should be submitted on or before September 17, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2025-16364 Filed 8-26-25; 8:45 am]
BILLING CODE 8011-01-P
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