Notice2025-21987
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend BX Equity 4, Rule 4702(b)(4)(C) To Specify That the “Time-in-Force” Order Attribute of “Immediate-or-Cancel” Is Not Available to Post-Only Orders Entered Through the CORE FIX protocol
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Published
December 5, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 232 (Friday, December 5, 2025)</title>
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[Federal Register Volume 90, Number 232 (Friday, December 5, 2025)]
[Notices]
[Pages 56218-56220]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-21987]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104291; File No. SR-BX-2025-029]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend BX Equity
4, Rule 4702(b)(4)(C) To Specify That the ``Time-in-Force'' Order
Attribute of ``Immediate-or-Cancel'' Is Not Available to Post-Only
Orders Entered Through the CORE FIX protocol
December 2, 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 24, 2025, Nasdaq BX, Inc. (``BX'' 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 BX Equity 4, Rule 4702(b)(4)(C) to
specify that the ``Time-in-Force'' Order Attribute of ``Immediate-or-
Cancel'' is not available to Post-Only Orders entered through the CORE
FIX protocol. The proposed amendment will not make any other
substantive change to the rules.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/bx/rulefilings">https://listingcenter.nasdaq.com/rulebook/bx/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's rules provide Participants five Order \3\ entry
protocols: OUCH,\4\ RASH,\5\ FIX,\6\ FLITE,\7\ and CORE FIX.\8\ Due to
differences in the technical designs and capabilities of these
protocols, they offer market participants different functionalities and
experiences with respect to order handling. That is, order handling
behaviors on the Exchange vary, in certain circumstances, depending
upon the particular protocol that a Participant chooses to utilize to
enter its Orders in
[[Page 56219]]
connection with particular Order Types \9\ and Order Attributes.\10\
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\3\ The term ``Order'' means an instruction to trade a specified
number of shares in a specified NMS stock submitted to the BX
Equities Market by a customer. See BX Equity 1, Section 1(a)(11).
\4\ The OUCH Order entry protocol is a proprietary protocol that
allows subscribers to quickly enter orders into the System and
receive executions. OUCH accepts limit Orders from members, and if
there are matching Orders, they will execute. Non-matching Orders
are added to the Limit Order Book, a database of available limit
Orders, where they are matched in price-time priority. OUCH only
provides a method for members to send Orders and receive status
updates on those Orders. See <a href="https://www.nasdaqtrader.com/Trader.aspx?id=OUCH">https://www.nasdaqtrader.com/Trader.aspx?id=OUCH</a>.
\5\ RASH (Routing and Special Handling) is a proprietary
protocol that allows participants to enter Orders, cancel existing
Orders and receive executions while providing smart order routing
and special handling features. RASH also allows participants to use
advanced functionality, including discretion, random reserve,
pegging and routing. See <a href="https://www.nasdaqtrader.com/Trader.aspx?id=RASH">https://www.nasdaqtrader.com/Trader.aspx?id=RASH</a>.
\6\ FIX is a vendor-neutral standard message protocol that
defines an electronic message exchange for communicating securities
transactions between two parties. The Exchange's FIX implementation
acts like a router, converting incoming FIX messages into OUCH
messages and back again. See <a href="https://www.nasdaqtrader.com/Trader.aspx?id=FIX">https://www.nasdaqtrader.com/Trader.aspx?id=FIX</a> and <a href="https://www.nasdaqtrader.com/content/ProductsServices/Trading/Protocols_quickref.pdf">https://www.nasdaqtrader.com/content/ProductsServices/Trading/Protocols_quickref.pdf</a>.
\7\ FIX Lite or ``FLITE'' is an Order entry protocol based on a
subset of FIX. See <a href="https://www.nasdaqtrader.com/Trader.aspx?id=FLITE">https://www.nasdaqtrader.com/Trader.aspx?id=FLITE</a>
and <a href="https://www.nasdaqtrader.com/content/ProductsServices/Trading/Protocols_quickref.pdf">https://www.nasdaqtrader.com/content/ProductsServices/Trading/Protocols_quickref.pdf</a>.
\8\ CORE FIX is a proprietary order entry protocol that will
allow participants to code for FIX, while enjoying the faster direct
access to the Exchange that is offered by OUCH. The CORE FIX order
entry protocol became effective on BX on September 5, 2025, but it
has not yet become operative on the Exchange. See <a href="https://www.nasdaqtrader.com/TraderNews.aspx?id=ETA2025-57">https://www.nasdaqtrader.com/TraderNews.aspx?id=ETA2025-57</a> and Securities
Exchange Act Release No. 103891 (Sept. 5, 2025), 90 FR 43705 (Sept.
10, 2025) (File No. SR-BX-2025-017) (Self-Regulatory Organizations;
Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Add the CORE FIX Order Entry Protocol and To
Amend Nasdaq BX Equity 4, Rules 4120, 4702, 4703, and 4757).
\9\ An ``Order Type'' is a standardized set of instructions
associated with an Order that define how it will behave with respect
to pricing, execution, and/or posting to the Exchange Book when
submitted to the System. See BX Equity 1, Section 1(a)(11). The
``System,'' which is another term for the Nasdaq BX Equities Market,
is the automated system for order execution and trade reporting
owned and operated by the Exchange. See Nasdaq BX Equity 1, Section
1(a)(6).
\10\ An ``Order Attribute'' is a further set of variable
instructions that may be associated with an Order to further define
how it will behave with respect to pricing, execution, and/or
posting to the Exchange Book when submitted to the System. See BX
Equity 1, Section 1(a)(11).
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Currently, BX Equity 4, Rule 4702(b)(4)(C) specifies that a Post-
Only Order with a Time-in-Force of Immediate-or-Cancel (``IOC'') \11\
may not be entered through RASH or FIX. The Exchange proposes to amend
this rule to specify that this provision also applies to orders entered
through the CORE FIX protocol. In other words, a Post-Only Order with a
Time-in-Force of IOC may not be entered through RASH, FIX, or CORE FIX.
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\11\ An order with an IOC Order Attribute is to be executed in
whole or in part upon receipt. Any portion not so executed is
cancelled.
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The Exchange will announce the implementation date of the new CORE
FIX Order Entry Protocol, including the functionality described in this
filing, in an Equity Trader Alert at least 30 days prior to
implementation. At present, the Exchange expects that the new CORE FIX
functionality will be ready for implementation in the first quarter of
2026, although that time frame is subject to change.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\12\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\13\ 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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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
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As a preliminary matter, the Exchange notes that this proposal is
not novel. Earlier this year The Nasdaq Stock Market LLC made a similar
change to its rulebook when it established CORE FIX on its equities
market.\14\ The CORE FIX functionality under Nasdaq Equity 4, Rule
4702(b)(4)(C) \15\ is substantially similar to the CORE FIX
functionality proposed by BX in the present filing.
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\14\ See Securities Exchange Act Release No. 102661 (Mar. 13,
2025), 90 FR 12858 (Mar. 19, 2025) (File No. SR-NASDAQ-2025-027)
(Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change to
Amend Equity 4, Rules 4120, 4702 4703, and 4757) (``Nasdaq
Filing'').
\15\ As amended in the Nasdaq Filing, this Nasdaq rule reads as
follows: ``The following Order Attributes may be assigned to a Post-
Only Order . . . Time-in-Force; provided, however, that a Post-Only
Order with a Time-in-Force of IOC may not be entered through CORE
FIX, RASH, QIX, or FIX.''
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It is consistent with the Act to amend the rulebook to specify the
functionality of the new CORE FIX order entry protocol. All that the
current filing does is specify that Post-Only Orders with a Time-in-
Force of IOC that are submitted through CORE FIX will be rejected, just
as they are rejected when entered through RASH or FIX. Participants who
wish to avail themselves of the Time-in-Force of IOC for Post-Only
Orders may continue to do so by utilizing other order entry protocols
for that purpose.
Finally, this proposal is consistent with the Act and is designed
to promote just and equitable principles of trade because it ensures
that the rulebook accurately reflects the functionality of the of Time-
in-Force Order Attribute of IOC for Post-Only Orders. Specifying in the
rulebook that this Order Attribute is not available for Post-Only
Orders entered through CORE FIX will help market participants choose
the most appropriate order entry protocol to achieve their trading
objectives.
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. As a general principle, the
proposed changes are reflective of the significant competition among
exchanges and non-exchange venues for order flow. In this regard, a
proposed change that amends and clarifies the Exchange's Rules
regarding its Order Types and Order Attributes is pro-competitive
because it bolsters the efficiency, functionality, and overall
attractiveness of the Exchange in an absolute sense and relative to its
peers. Moreover, the proposed change will not unduly burden intra-
market competition among various Exchange participants. Participants
will experience no competitive impact from this proposal, as the change
in this proposal will apply equally to all Participants, and
Participants remain free to use other order entry protocols if they
wish to continue to avail themselves of the Time-in-Force of IOC for
Post-Only Orders.
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 \16\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\17\
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\16\ 15 U.S.C. 78s(b)(3)(A)(iii).
\17\ 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#5c2e293039713f3331313932282f1c2f393f723b332a"><span class="__cf_email__" data-cfemail="97e5e2fbf2baf4f8fafaf2f9e3e4d7e4f2f4b9f0f8e1">[email protected]</span></a>. Please include
file number SR-BX-2025-029 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-BX-2025-029. This file
[[Page 56220]]
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-BX-2025-029 and should be submitted on
or before December 26, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-21987 Filed 12-4-25; 8:45 am]
BILLING CODE 8011-01-P
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