Notice2025-19066
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NDX Pricing
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 47041-47042]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-19066]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104092; File No. SR-Phlx-2025-51]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend NDX
Pricing
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 PHLX LLC (``Phlx'' 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 in the Exchange's Pricing Schedule at Options 7, Section
5.A.
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/phlx/rulefilings">https://listingcenter.nasdaq.com/rulebook/phlx/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
This proposal amends the fees for the Nasdaq 100[supreg] Index
(``NDX'') \3\ and fees for the nonstandard expiration dates
(``NDXP'').\4\
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\3\ NDX represents A.M.-settled options on the full value of the
Nasdaq 100 Index traded under the symbol NDX.
\4\ 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.A, the Exchange currently
charges all Non-Customer \5\ orders in NDX and NDXP a $0.75 per
contract transaction fee. Customer \6\ orders are currently assessed a
$0.25 per contract transaction fee in NDX and NDXP. These transaction
fees apply to electronic simple and complex executions as well as floor
transactions.
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\5\ The term ``Non-Customer'' applies to transactions for the
accounts of Lead Market Makers, Market Makers, Firms, Professionals,
Broker-Dealers and JBOs. See Options 7, Section 1(c).
\6\ The term ``Customer'' applies to any transaction that is
identified by a member or member organization for clearing in the
Customer range at The Options Clearing Corporation (``OCC'') which
is not for the account of a broker or dealer or for the account of a
``Professional'' (as that term is defined in Options 1, Section
1(b)(45)). See Options 7, Section 1(c).
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The Exchange now proposes to increase the Customer pricing in NDX
and NDXP from $0.25 to $0.50 per contract for electronic simple and
complex executions as well as floor transactions. Customers will
continue to be assessed a lower fee as compared to Non-Customers. While
the Exchange is increasing the fee, the Exchange believes that a
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,\7\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\8\ 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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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes that its proposal to increase the Customer
pricing in NDX and NDXP from $0.25 to $0.50 per contract for electronic
simple and complex executions as well as floor transactions is
reasonable because Customers will continue to be assessed a lower fee
as compared to Non-Customers. While the Exchange is increasing the fee,
the Exchange believes that a Customer fee of $0.50 per contract will
continue to attract order flow to the Exchange. Pricing by symbol is a
common practice on many U.S. options exchanges as a means to
incentivize order flow to be sent to an exchange for execution in
particular products. 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'').\9\ 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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\9\ 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
Customers. Assessing a lower fee to Customers as compared to Non-
Customers is equitable
[[Page 47042]]
and not unfairly discriminatory because Customer 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 will apply the
proposed surcharge uniformly to all Customers. Assessing a lower fee to
Customers as compared to Non-Customers does not impose an undue burden
on competition because Customer 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.\10\ 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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\10\ 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.\11\
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\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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: (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.
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#bac8cfd6df97d9d5d7d7dfd4cec9fac9dfd994ddd5cc"><span class="__cf_email__" data-cfemail="bccec9d0d991dfd3d1d1d9d2c8cffccfd9df92dbd3ca">[email protected]</span></a>. Please include
file number SR-Phlx-2025-51 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-Phlx-2025-51. 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-Phlx-2025-51 and should be submitted on
or before October 21, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-19066 Filed 9-29-25; 8:45 am]
BILLING CODE 8011-01-P
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