Notice2026-00806
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 5, Sections 5 and 7
Primary source
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Published
January 16, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 11 (Friday, January 16, 2026)</title>
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[Federal Register Volume 91, Number 11 (Friday, January 16, 2026)]
[Notices]
[Pages 2249-2250]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-00806]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104593; File No. SR-GEMX-2026-01]
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Options 5,
Sections 5 and 7
January 13, 2026.
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 January 6, 2026, Nasdaq GEMX, LLC (``GEMX'' 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 Options 3, Section 5 (Entry and
Display of Orders); and Options 3, Section 7 (Types of Orders and Order
and Quote Protocols).
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/gemx/rulefilings">https://listingcenter.nasdaq.com/rulebook/gemx/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 Options 3, Section 5 (Entry and
Display of Orders) and Options 3, Section 7 (Types of Orders and Order
and Quote Protocols). Each rule change will be described below.
Options 3, Section 5
The Exchange proposes to amend Options 3, Section 5, Entry and
Display of Orders, to align the rule text at Options 3, Section 5(c)
with Nasdaq Phlx LLC (``Phlx'') Options 3, Section 5(c). Today, GEMX
Options 3, Section 5(c) states,
The System automatically executes eligible orders using the
Exchange's displayed best bid and offer (``BBO'') or the Exchange's
non-displayed order book (``internal BBO'') if the best bid and/or
offer on the Exchange has been re-priced pursuant to subsection (d)
below and Options 3, Section 4(b)(6) above.
At this time, the Exchange proposes to state,
The System automatically executes eligible orders using the
Exchange's displayed best bid and offer (``BBO'') or the Exchange's
non-displayed order book (``internal BBO'') if there are non-
displayed orders on the order book or the best bid and/or offer on
the Exchange has been re-priced pursuant to subsection (d) below and
Options 3, Section 4(b)(6) above.
The amendment is non-substantive because, today, a non-displayed
order on the order book will be executed at the best price on the
Exchange whether that best price is displayed or non-displayed.
Options 3, Section 7
The Exchange proposes to amend the language of GEMX Supplementary
.03 to Options 3, Section 7 to align with Phlx Supplementary .03 to
Options 3, Section 7. Specifically, the Exchange proposes to amend the
``Financial Information eXchange'' or ``FIX'' at Supplementary .03(a)
to Options 3, Section 7 to align the rule text with Phlx Supplementary
.03(a) to Options 3, Section 7 and note that the interface allows
Members and their Sponsored Customers to connect, send, and receive
messages related to orders and auction orders and responses to and from
the Exchange. This amendment reflects current System operation.
Similarly, the Exchange proposes to amend the ``Ouch to Trade
Options'' or ``OTTO'' at Supplementary .03(b) to Options 3, Section 7
to align the rule text with Phlx Supplementary .03(b) to Options 3,
Section 7 and note that the interface allows Members and their
Sponsored Customers to connect, send, and receive messages related to
orders, auction orders, and auction responses to and from the Exchange.
This amendment reflects current System operation.
Finally, the Exchange proposes to amend the ``Specialized Quote
Feed'' or ``SQF'' at Supplementary .03(c) to Options 3, Section 7 to
align the rule text with Phlx Supplementary .03(c) to Options 3,
Section 7 and note that the interface allows Market Makers to connect,
send, and receive messages related to quotes, Immediate-or-Cancel
Orders, and auction responses to and from the Exchange. This amendment
reflects current System operation.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\3\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\4\ 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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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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Options 3, Section 5
The Exchange's proposal to note that the System automatically
executes eligible orders using the Exchange's displayed best bid and
offer (``BBO'') or the Exchange's non-displayed order book (``internal
BBO'') if there are non-displayed orders on the order book or the best
bid and/or offer on the Exchange has been re-priced pursuant to
subsection (d) below and Options 3, Section 4(b)(6) is consistent with
the Act because, today, a non-displayed order on the order book will be
executed at the best price on the Exchange whether that best price is
displayed or non-displayed. This rule text aligns GEMX Options 3,
Section 5(c) with Phlx Options 3, Section 5(c).
Options 3, Section 7
The Exchange's proposal to amend FIX at Supplementary .03(a) to
Options 3, Section 7 to align the rule text with Phlx Supplementary
.03(a) to Options 3, Section 7 and note that the interface allows
Members and their Sponsored Customers to connect, send, and receive
messages related to orders and auction orders and responses to and from
the Exchange is consistent with the Act as the interface is designed
for Members to communicate to the Exchange with responses and receive
messages from the Exchange. This rule text aligns with Phlx
Supplementary .03(a) to Options 3, Section 7. Similar changes are
proposed for OTTO at Supplementary .03(b) to Options 3, Section 7 and
SQF at
[[Page 2250]]
Supplementary .03(c) and those changes align with Phlx Supplementary
.03(b) and (c) to Options 3, Section 7. The amendments reflects current
System operation.
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 that is not necessary or appropriate
in furtherance of the purposes of the Act.
Options 3, Section 5
Amending Options 3, Section 5(c) does not impose an undue burden on
intra-market competition because the Exchange will automatically
execute each transaction at the best price available on the Exchange.
Amending Options 3, Section 5(c) does not impose an undue burden on
inter-market competition because all options Exchange execute at the
best price available on that market regardless of the displayed price.
Options 3, Section 7
Amending the protocols at Supplementary .03 to Options 3, Section 7
to specify the protocols permit communications to and from the
Exchange, including responses, does not impose an undue burden on
intra-market competition because this is true for all Members.
Amending the protocols at Supplementary .03 to Options 3, Section 7
to specify the protocols permit communications to and from the
Exchange, including responses, does not impose an undue burden on
inter-market competition because other options exchange such as Phlx
have identical protocols.
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 \5\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\6\
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\5\ 15 U.S.C. 78s(b)(3)(A)(iii).
\6\ 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#453730292068262a2828202b3136053620266b222a33"><span class="__cf_email__" data-cfemail="c2b0b7aea7efa1adafafa7acb6b182b1a7a1eca5adb4">[email protected]</span></a>. Please include
file number SR-GEMX-2026-01 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-GEMX-2026-01. 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-GEMX-2026-01 and should be submitted on
or before February 6, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-00806 Filed 1-15-26; 8:45 am]
BILLING CODE 8011-01-P
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