Notice2025-19052
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NDX Fees
Primary source
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Published
September 30, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 187 (Tuesday, September 30, 2025)</title>
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[Federal Register Volume 90, Number 187 (Tuesday, September 30, 2025)]
[Notices]
[Pages 46964-46966]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-19052]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104090; File No. SR-ISE-2025-29]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend NDX Fees
September 26, 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 September 24, 2025, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I, 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 the fees for Nasdaq 100[supreg]
Index options \3\ in the Exchange's Pricing Schedule at Options 7,
Section 5.
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\3\ ``NDX'' means A.M. or P.M. settled options on the full value
of the Nasdaq 100[supreg] Index. See Options 7, Section 1(c).
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While the changes proposed herein are effective upon filing, the
Exchange has designated the amendments become operative on October 1,
2025.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/ise/rulefilings">https://listingcenter.nasdaq.com/rulebook/ise/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 purpose of the proposed rule change is to amend the fees for
the Nasdaq 100[supreg] Index (``NDX'') \4\ and fees for the nonstandard
expiration dates (``NDXP'').\5\
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\4\ NDX represents A.M.-settled options on the full value of the
Nasdaq 100 Index traded under the symbol NDX.
\5\ NDXP represents P.M.-settled options on the full value of
the Nasdaq 100 Index traded under the symbol NDXP.
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As set forth in Options 7, Section 5, the Exchange currently
charges all Non-Priority Customer \6\ orders in NDX and NDXP a $0.75
per contract transaction fee for simple transactions. Priority Customer
\7\ orders are currently assessed a $0.25 per contract transaction fee
in NDX and NDXP for simple transactions. Note 1 of Options 7, Section 5
provides that for all executions in complex NDX orders for Non-Priority
Customers, the applicable complex order fees for Non-Select Symbols in
Section 4 will apply. Options 7, Section 4 Complex Orders Maker Fees in
Select Symbols \8\ for Non-Customers are assessed as follows: a $0.10
per contract for Market Makers,\9\ Firm Proprietary \10\/Broker-Dealers
\11\ and Professional Customers \12\ and $0.20 per contract for Non-
Nasdaq ISE Market Makers (FarMM).\13\ Options 7, Section 4 Complex
Orders Maker Fees in Non-Select Symbols \14\ for Non-Customers are
assessed as follows: a $0.20 per contract for Market Makers, Firm
Proprietary/Broker-Dealers, Professional Customers and Non-Nasdaq ISE
Market Makers (FarMM). Options 7, Section 4 Complex Orders Taker Fees
in Select Symbols for Non-Customers are assessed as follows: a $0.50
per contract for Market Makers, Firm Proprietary/Broker-Dealers,
Professional Customers and Non-Nasdaq ISE Market Makers (FarMM).
Options 7, Section 4 Complex Orders Taker Fees in Non-Select Symbols
for Non-Customers are assessed as follows: a $1.15 per contract for
Market Makers, Firm Proprietary/Broker-Dealers, Professional Customers
and Non-Nasdaq ISE Market Makers (FarMM).
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\6\ ``Non-Priority Customers'' include Market Makers, Non-Nasdaq
ISE Market Makers (FarMMs), Firm Proprietary/Broker-Dealers, and
Professional Customers. See Options 7, Section 1(c).
\7\ A ``Priority Customer'' is a person or entity that is not a
broker/dealer in securities, and does not place more than 390 orders
in listed options per day on average during a calendar month for its
own beneficial account(s), as defined in Nasdaq ISE Options 1,
Section 1(a)(37). Unless otherwise noted, when used in this Pricing
Schedule the term ``Priority Customer'' includes ``Retail.'' A
``Retail'' order is a Priority Customer order that originates from a
natural person, provided that no change is made to the terms of the
order with respect to price or side of market and the order does not
originate from a trading algorithm or any other computerized
methodology. See Options 7, Section 1(c).
\8\ ``Select Symbols'' are options overlying all symbols listed
on the Nasdaq ISE that are in the Penny Interval Program. See
Options 7, Section 1(c).
\9\ The term ``Market Makers'' refers to ``Competitive Market
Makers'' and ``Primary Market Makers'' collectively. See Options 1,
Section 1(a)(21).
\10\ A ``Firm Proprietary'' order is an order submitted by a
member for its own proprietary account. See Options 7, Section 1(c).
\11\ A ``Broker-Dealer'' order is an order submitted by a member
for a broker-dealer account that is not its own proprietary account.
See Options 7, Section 1(c).
\12\ A ''Professional Customer'' is a person or entity that is
not a broker/dealer and is not a Priority Customer. See Options 7,
Section 1(c).
\13\ A ``Non-Nasdaq ISE Market Maker'' is a market maker as
defined in Section 3(a)(38) of the Securities Exchange Act of 1934,
as amended, registered in the same options class on another options
exchange. See Options 7, Section 1(c).
\14\ ``Non-Select Symbols'' are options overlying all symbols
excluding Select Symbols. See Options 7, Section 1(c).
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At this time, the Exchange proposes to increase the Priority
Customer pricing in NDX and NDXP from $0.25 to $0.50 per contract for
simple orders. The Exchange is not proposing to amend its
[[Page 46965]]
pricing for complex orders. Priority Customers will continue to be
assessed a lower fee as compared to Non-Priority Customers. While the
Exchange is increasing the fee, the Exchange believes that a Priority
Customer fee of $0.50 per contract will continue to attract order flow
to the Exchange.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\15\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\16\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and issuers and other persons using any
facility, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes that its proposal to increase the Priority
Customer pricing in NDX and NDXP from $0.25 to $0.50 per contract for
simple executions is reasonable because Priority Customers will
continue to be assessed a lower fee as compared to Non-Priority
Customers. While the Exchange is increasing the fee, the Exchange
believes that a Priority Customer fee of $0.50 per contract for simple
executions will continue to attract order flow to the Exchange. The
Exchange notes that market participants are offered different ways to
gain exposure to the Nasdaq 100 Index, whether through the Exchange's
proprietary products like options overlying NDX or XND, or separately
through multi-listed options overlying Invesco QQQ Trust (``QQQ'').\17\
Offering such products provides market participants with a variety of
choices in selecting the product they desire to utilize in order to
gain exposure to the Nasdaq 100 Index.
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\17\ QQQ is an exchange-traded fund based on the same Nasdaq 100
Index as NDX and XND.
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The Exchange believes that its proposal is equitable and not
unfairly discriminatory because it will be applied uniformly to all
Priority Customers. Assessing lower fees to Priority Customers as
compared to Non-Priority Customers is equitable and not unfairly
discriminatory because Priority Customers liquidity benefits all market
participants by providing more trading opportunities, which attracts
market makers. An increase in the activity of these market participants
in turn facilitates tighter spreads, which may cause an additional
corresponding increase in order flow from other market participants, to
the benefit of all market participants who may interact with the order
flow.
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.
In terms of intra-market competition, the Exchange believes that
its proposal does not impose an undue burden on competition because it
will be applied uniformly to all Priority Customers. Assessing lower
fees to Priority Customers as compared to Non-Priority Customers does
not impose an undue burden on competition because Priority Customers
liquidity benefits all market participants by providing more trading
opportunities, which attracts market makers. An increase in the
activity of these market participants in turn facilitates tighter
spreads, which may cause an additional corresponding increase in order
flow from other market participants, to the benefit of all market
participants who may interact with the order flow.
In terms of inter-market competition, the Exchange notes that it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. In such an environment, the Exchange
must continually adjust its fees to remain competitive with other
options exchanges. Because competitors are free to modify their own
fees in response, and because market participants may readily adjust
their order routing practices, the Exchange believes that the degree to
which fee changes in this market may impose any burden on competition
is extremely limited. As noted above, market participants are offered
an opportunity to transact in NDX, NDXP, or XND, or separately execute
options overlying QQQ. Offering these products provides market
participants with a variety of choices in selecting the product they
desire to use to gain exposure to the Nasdaq 100 Index.
In addition to the Exchange, market participants have alternative
options exchanges that they may participate on and direct their order
flow, which list proprietary products that compete with NDX and
NDXP.\18\ In sum, if the changes proposed herein are unattractive to
market participants, it is likely that the Exchange will lose market
share as a result. Accordingly, the Exchange does not believe that the
proposed changes will impair the ability of members or competing
options exchanges to maintain their competitive standing in the
financial markets.
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\18\ See e.g., pricing for Russell 2000 Index (``RUT'') on
Cboe's Fees Schedule and Cboe C2 Exchange, Inc.'s (``C2'') Fees
Schedule. See also SPX pricing on Cboe's Fees Schedule. Both RUT and
SPX are proprietary products on the Cboe markets that are broad-
based index options, like NDX and NDXP.
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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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\19\ 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: (i) necessary or appropriate in the public
interest; (ii) for the protection of investors; or (iii) 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.
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\19\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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#9fedeaf3fab2fcf0f2f2faf1ebecdfecfafcb1f8f0e9"><span class="__cf_email__" data-cfemail="83f1f6efe6aee0eceeeee6edf7f0c3f0e6e0ade4ecf5">[email protected]</span></a>. Please include
file number SR-ISE-2025-29 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-ISE-2025-29. 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
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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-ISE-2025-29 and should be submitted on or
before October 21, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-19052 Filed 9-29-25; 8:45 am]
BILLING CODE 8011-01-P
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