Notice2025-22147
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend PHLX Equity 4, Rule 3301A(b) To Specify That the “Time-in-Force” Order Attribute of “Immediate-or-Cancel” Is Not Available to Post-Only Orders or Midpoint Peg Post-Only Orders Entered Through the CORE FIX Protocol, and To Correct a Clerical Error Regarding the Availability of the Trade Now Order Attribute for Midpoint Peg Post-Only Orders
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 8, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 90 Issue 233 (Monday, December 8, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 233 (Monday, December 8, 2025)]
[Notices]
[Pages 56820-56822]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-22147]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104297; File No. SR-PHLX-2025-63]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend PHLX
Equity 4, Rule 3301A(b) To Specify That the ``Time-in-Force'' Order
Attribute of ``Immediate-or-Cancel'' Is Not Available to Post-Only
Orders or Midpoint Peg Post-Only Orders Entered Through the CORE FIX
Protocol, and To Correct a Clerical Error Regarding the Availability of
the Trade Now Order Attribute for Midpoint Peg Post-Only Orders
December 3, 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 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend PHLX Equity 4, Rule 3301A(b) to
specify that the ``Time-in-Force'' Order Attribute of ``Immediate-or-
Cancel'' is not available to Post-Only Orders or Midpoint Peg Post-Only
Orders entered through the CORE FIX protocol, and to correct a clerical
error regarding the availability of the Trade Now Order Attribute for
Midpoint Peg Post-Only Orders.
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
The Exchange's rules provide participants five Order \3\ entry
protocols:
[[Page 56821]]
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 connection with particular Order Types \9\ and Order
Attributes.\10\
---------------------------------------------------------------------------
\3\ The term ``Order'' means an instruction to trade a specified
number of shares in a specified NMS stock submitted to ``PSX'' or
``System'' by a participant. See PHLX Equity 1, Section 1(e).
``PSX'' or ``System'' is the automated system for order execution
and trade reporting owned and operated by the Exchange. See PHLX
Equity 1, Section 1(a).
\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 PHLX on September 23, 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. 104020 (Sept. 23, 2025), 90 FR 46446 (Sept.
26, 2025) (File No. SR-PHLX-2025-46) (Self-Regulatory Organizations;
Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Amend PHLX Equity 4, Rules 3100, 3301A,
3301B, and 3307 To Add the CORE FIX Order Entry Protocol) (``2025
Filing'').
\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 PSX Book when submitted
to the System. See PHLX Equity 1, Section 1(e). The ``PSX Book'' is
a montage for quotes and orders that collects and ranks all quotes
and orders submitted by participants. See PHLX Equity 1, Section
1(a)(1).
\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 PSX Book when submitted to PSX. See PHLX Equity 1,
Section 1(e).
---------------------------------------------------------------------------
Currently, PHLX Equity 4, Rule 3301A(b)(4)(C) and Rule
3301A(b)(6)(C) specify that a Post-Only Order and a Midpoint Peg Post-
Only Order, respectively, with a Time-in-Force of Immediate-or-Cancel
(``IOC'') \11\ may not be entered through RASH or FIX. The Exchange
proposes to amend these rules to specify that these exclusions also
apply to orders entered through the CORE FIX protocol. In other words,
a Post-Only Order or a Midpoint Peg Post-Only Order with a Time-in-
Force of IOC may not be entered through RASH, FIX, or CORE FIX.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
Additionally, the Exchange wishes to correct a clerical error in
PHLX Equity 4, Rule 3301A(b)(6)(C) regarding the availability of the
Trade Now Order Attribute for Midpoint Peg Post-Only Orders. In 2024
the Exchange removed the Trade Now Order Attribute from the list of
Order Attributes available for Midpoint Peg Post-Only Orders.\12\
However, the Exchange mistakenly did not make this change to its
rulebook on the Exchange's website. Therefore, earlier this year, when
the Exchange modified this same rule as part of its filing to add the
CORE FIX order entry protocol to the Exchange, the Exchange mistakenly
modified this deleted rule text to add CORE FIX to the list of order
entry protocols through which the Trade Now Order Attribute is
available for Midpoint Peg Post Only Orders.\13\ The Exchange proposes
to correct this clerical error by again removing the Trade Now Order
Attribute from the list of order attributes available for Midpoint Peg
Post-Only Orders.
---------------------------------------------------------------------------
\12\ See Securities Exchange Act Release No. 100061 (May 3,
2024), 89 FR 39671 (May 9, 2024) (File No. SR-PHLX-2024-22) (Self-
Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change To Amend the Trade
Now Order Attribute, at Equity 4, Rule 3301B and Rule 3301A) (``2024
Filing'').
\13\ See 2025 Filing.
---------------------------------------------------------------------------
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.
The Exchange will remove from its rulebook the incorrect language
in PHLX Equity 4, Rule 3301A(b)(6)(C) regarding the availability of the
Trade Now Order Attribute for Midpoint Peg Post-Only Orders 30 days
after the date of this filing.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\14\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\15\ 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.
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78f(b).
\15\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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.\16\ The CORE FIX functionality under Nasdaq Equity 4, Rule
4702(b)(4)(C) \17\ and Nasdaq Equity 4, Rule 4702(b)(5)(C) \18\ is
substantially similar to the CORE FIX functionality proposed by PHLX in
the present filing. Additionally, removing Trade Now from the list of
Order Attributes available for Midpoint Peg Post-Only Orders would
effectuate one of the changes made by the Exchange, and noticed by the
Commission, in the 2024 Filing.
---------------------------------------------------------------------------
\16\ 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'').
\17\ 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.''
\18\ As amended in the Nasdaq Filing, this Nasdaq rule reads as
follows: ``The following Order Attributes may be assigned to a
Midpoint Peg Post-Only Order . . . Time-in-Force; provided, however,
that a Midpoint Peg Post-Only Order with a Time-in-Force of IOC may
not be entered through CORE FIX, RASH, QIX, or FIX.''
---------------------------------------------------------------------------
It is consistent with the Act to amend the rulebook to specify the
functionality of the new CORE FIX order entry protocol. What the
current filing does is specify that Post-Only Orders and Midpoint Peg
Post-Only Orders with a Time-in-Force of IOC that are submitted through
CORE FIX will be rejected, just as such orders 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 and Midpoint Peg Post-
Only Orders may continue to do so by utilizing other order entry
protocols for that purpose.
It is also consistent with the Act to correct the rulebook to
remove Trade Now from the list of Order Attributes available for a
Midpoint Peg Post-Only
[[Page 56822]]
Order. This is a change that was already filed and noticed by the
Commission in 2024.\19\ Inadvertently including this deleted rule text
in the 2025 Filing was a clerical error, and correcting this mistake
helps avoid potential confusion among market participants.
---------------------------------------------------------------------------
\19\ See 2024 Filing.
---------------------------------------------------------------------------
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 and Midpoint Peg
Post-Only Orders. Specifying in the rulebook that this Order Attribute
is not available for Post-Only Orders and Midpoint Peg Post-Only Orders
entered through CORE FIX will help market participants choose the most
appropriate order entry protocol to achieve their trading objectives.
Also, removing once again Trade Now from the list of Order Attributes
available for Midpoint Peg Post-Only Orders corrects a clerical error
in the rulebook, which in turn led to a mistake in the 2025 Filing, and
thus ensures that the rulebook matches what the Exchange filed, and the
Commission noticed, in the 2024 Filing.
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 changes will not unduly burden intra-
market competition among various Exchange participants. Participants
will experience no competitive impact from this change, as the change
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 or Midpoint
Peg Post-Only Orders. Likewise, correcting the rulebook by removing
Trade Now from the list of Order Attributes available for Midpoint Peg
Post-Only Orders will not burden intra-market competition among various
Exchange participants. Participants will experience no competitive
impact from this change, as the change will apply equally to all
participants, and it is merely correcting a clerical error made by the
Exchange in the 2025 Filing, and thus implementing a change that the
Exchange made, and the Commission noticed, in the 2024 Filing.
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 \20\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\21\
---------------------------------------------------------------------------
\20\ 15 U.S.C. 78s(b)(3)(A)(iii).
\21\ 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.
---------------------------------------------------------------------------
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#2153544d440c424e4c4c444f5552615244420f464e57"><span class="__cf_email__" data-cfemail="d9abacb5bcf4bab6b4b4bcb7adaa99aabcbaf7beb6af">[email protected]</span></a>. Please include
file number SR-PHLX-2025-63 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-2025-63. 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-2025-63 and should be submitted on
or before December 29, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
---------------------------------------------------------------------------
\22\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-22147 Filed 12-5-25; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on December 8, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.