Notice2025-21638
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the Price of a 10Gb Ultra Fiber Connection to the Exchange
Primary source
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Published
December 1, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 228 (Monday, December 1, 2025)</title>
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[Federal Register Volume 90, Number 228 (Monday, December 1, 2025)]
[Notices]
[Pages 55190-55192]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-21638]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104263; File No. SR-MRX-2025-29]
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Modify the Price
of a 10Gb Ultra Fiber Connection to the Exchange
November 25, 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 November 13, 2025, Nasdaq MRX, LLC (``MRX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule
[[Page 55191]]
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 modify the price of a 10Gb Ultra fiber
connection to the Exchange, as described further below. While these
amendments are effective upon filing, the Exchange has designated the
proposed amendments to be operative on January 2, 2026.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/mrx/rulefilings">https://listingcenter.nasdaq.com/rulebook/mrx/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 its fee schedule relating to
physical connectivity fees. By way of background, a market participant
may opt to connect to the Exchange at its data center through various
means, including, inter alia: (1) direct connections and indirect
connections through vendors; (2) direct connections via copper and
fiber; (3) as to fiber connections, connections with different
throughputs (1 gigabit (``Gb''), 1Gb Ultra, 10Gb, 10Gb Ultra, and
40Gb). The Exchange currently assesses a $1,650 installation fee and a
$16,500 ongoing monthly fee for a 10Gb Ultra fiber connection. The
Exchange proposes to increase this monthly fee to $18,500 per month,
while maintaining the existing installation fee.
The Exchange notes the proposed fee change will better enable it to
continue to maintain and improve its market technology and services.
The Exchange also notes that the proposed fee amount, even as amended,
will be lower than the monthly fee assessed by the New York Stock
Exchange (``NYSE'') for a similar connection. NYSE offers a 10Gb LX LCN
Circuit and 10Gb NMS Network Circuit connection for which it charges a
$15,000 installation fee and a monthly fee of $22,000 per month.\3\
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\3\ See NYSE et al. Connectivity Fee Schedule, last updated
October 21, 2025, at 12, available at <a href="https://www.nyse.com/publicdocs/nyse/Wireless_Connectivity_Fees_and_Charges.pdf">https://www.nyse.com/publicdocs/nyse/Wireless_Connectivity_Fees_and_Charges.pdf</a>.
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The Exchange also notes that a market participant can use a single
10 Gb Ultra fiber connection to access all the following affiliated
exchanges: the Nasdaq Stock Market, the Nasdaq Options Market, Nasdaq
BX, Nasdaq, BX Options, Nasdaq PSX, PHLX Options, Nasdaq ISE, Nasdaq
GEMX, Nasdaq MRX, and the Nasdaq Bond Exchange (``Affiliate
Exchanges''). Notably, only one monthly fee currently (and will
continue) to apply per 10 Gb Ultra fiber connections regardless of how
many Affiliate Exchanges are accessed through that one fiber
connection.
The Exchange will implement the proposed rule change beginning on
January 2, 2026.
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 Sections
6(b)(4) and 6(b)(5) of the Act,\5\ 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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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4) and (5).
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The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \6\
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\6\ Securities Exchange Act Release No. 51808 (June 9, 2005), 70
FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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Likewise, in NetCoalition v. Securities and Exchange Commission \7\
(``NetCoalition'') the D.C. Circuit upheld the Commission's use of a
market-based approach in evaluating the fairness of market data fees
against a challenge claiming that Congress mandated a cost-based
approach.\8\
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\7\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
\8\ See NetCoalition, at 534-535.
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As the court emphasized, the Commission ``intended in Regulation
NMS that `market forces, rather than regulatory requirements' play a
role in determining the market data . . . to be made available to
investors and at what cost.'' \9\
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\9\ Id. at 537.
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Further, ``[n]o one disputes that competition for order flow is
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market
system, buyers and sellers of securities, and the broker-dealers that
act as their order-routing agents, have a wide range of choices of
where to route orders for execution'; [and] `no exchange can afford to
take its market share percentages for granted' because `no exchange
possesses a monopoly, regulatory or otherwise, in the execution of
order flow from broker dealers'. . . .'' \10\ Although the court and
the SEC were discussing the cash equities markets, the Exchange
believes that these views apply with equal force to the options
markets.
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\10\ Id. at 539 (quoting Securities Exchange Act Release No.
59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008)
(SR-NYSEArca-2006-21)).
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The Exchange believes the proposed fee change is reasonable as it
will better align the price of this connectivity option to the value it
offers to the market participants that utilize it. It will also better
enable the Exchange to maintain and improve its connectivity services
and facilities. Finally, the proposed fee change is reasonable as the
resulting 10Gb Ultra monthly fee will be lower than the amount assessed
by NYSE for an analogous market access connection.
Additionally, the Exchange believes that the proposal will be an
equitable allocation of fees and will not discriminate unfairly against
market participants. The proposed fee change is an equitable allocation
of fees because it reflects the substantial value that the 10Gb Ultra
fiber connection option provides to its users. This connectivity option
is particularly attractive to customers that desire ultra-low latency
connectivity to Nasdaq's Affiliated Exchanges because it provides
sufficient capacity to support most of their activities on the
Affiliated Exchanges
[[Page 55192]]
and does so at a reasonable comparative price point. The proposal is
not unfairly discriminatory because 10Gb Ultra connectivity will be
available to all customers at the same price. Moreover, it is an
optional product. As noted above, customers that do not wish to
purchase this product, either at the proposed price or otherwise, have
ample alternative options to connect to the Exchange, including many
options that are less expensive. While the proposed price increase will
impact customers which are latency sensitive and require larger
capacity connections than others, this is fair because users of 10Gb
Ultra fiber connections consume more resources from the network than do
other participants.
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 proposed fee change will not impact intramarket competition
because it will apply to all similarly situated participants equally
(i.e., all market participants that choose to purchase the 10 Gb Ultra
fiber connection). Additionally, the Exchange does not believe its
proposed pricing will impose a barrier to entry to smaller participants
and notes that its proposed connectivity pricing is associated with
relative usage of the various market participants. For example, market
participants with modest capacity needs or which are less latency
sensitive can continue to buy the less expensive copper or lower
throughput or non-ultra fiber options, or they may choose to connect
via a third-party vendor.
The proposed fee change also does not impose a burden on
intermarket competition that is not necessary or appropriate. As
described above, in establishing its proposed fee change the Exchange
compared its proposed fee increase to that of competitor exchanges'
analogous offerings. As noted above, the proposed monthly fee will be
$3,500 per month less than that of NYSE for a comparable product as
well as a substantially less costly for installation. NYSE is free to
adjust its connectivity offerings to render them more attractive as
compared to those of the Exchange.
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#99ebecf5fcb4faf6f4f4fcf7edead9eafcfab7fef6ef"><span class="__cf_email__" data-cfemail="0c7e796069216f6361616962787f4c7f696f226b637a">[email protected]</span></a>. Please include
file number SR-MRX-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-MRX-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 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-MRX-2025-29 and should be submitted on
or before December 22, 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. 2025-21638 Filed 11-28-25; 8:45 am]
BILLING CODE 8011-01-P
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