Notice2026-01975
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule General 8 Section 1 Related to Co-Location Services
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
February 2, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 21 (Monday, February 2, 2026)</title>
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[Federal Register Volume 91, Number 21 (Monday, February 2, 2026)]
[Notices]
[Pages 4744-4750]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01975]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104706; File No. SR-GEMX-2026-03]
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rule
General 8 Section 1 Related to Co-Location Services
January 28, 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 15, 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 restructure the Exchange's connectivity
fee schedule under Rule General 8, Section 1 relating to co-location
services and establish fees for certain co-location services, as
described further below.
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's current data center in Carteret, New Jersey,
consists of the original data center (``NY11''), an expansion area
(``NY11-4''), and a future expansion area (``NY11-5''). The purpose of
this proposed rule change is to restructure the Exchange's connectivity
fee schedule under Rule General 8, Section 1 to eliminate cabinet
density-based distinctions and associated fees, other than installation
fees,\3\ and establish a power delivery-based pricing model.
Specifically, the Exchange proposes to (i) eliminate all density-based
cabinet offerings under Section 1(a) of Rule General 8 including their
respective fees other than installation fees; and (ii) establish power
delivery-based, recuring monthly fees for cabinet power circuits under
Rule General 8, Section 1(c), as described below.
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\3\ See Rule General 8, Section 1(a).
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Current Cabinet Offerings
Currently, co-location customers have the option of obtaining
cabinets of various power densities at varying
[[Page 4745]]
installation and ongoing monthly fees.\4\ Co-location customers may
obtain a Half Cabinet,\5\ a Low Density Cabinet with power density less
than or equal to 2.88 kilowatts (``kW''),\6\ a Medium Density Cabinet
with power density greater than 2.88 kW and less than or equal to 5
kW,\7\ a Medium-High Density Cabinet with power density greater than 5
kW and less than or equal to 7 kW,\8\ a High Density Cabinet with power
density greater than 7 kW and less than 10 kW,\9\ a Super High Density
Cabinet with power density greater than 10 kW and less than or equal to
17.3 kW,\10\ and an Ultra High Density Cabinet with power density
greater than 10 kW and less than or equal to 15 kW.\11\
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\4\ See Rule General 8, Section 1(a).
\5\ Half cabinets are not available to new subscribers. The Half
Cabinet is currently offered for an ongoing monthly fee of $2,000.
See Rule General 8, Section 1(a).
\6\ The Low Density Cabinet is offered for an installation fee
of $3,850 and an ongoing monthly fee of $2,200. See Rule General 8,
Section 1(a).
\7\ The Medium Density Cabinet is offered for an installation
fee of $3,850 for NY11 and $5,940 for NY11-4 and an ongoing monthly
fee of $2,750 equally applicable to both NY11 and NY11-4. See Rule
General 8, Section 1(a).
\8\ The Medium High Density Cabinet is offered in NY11 for an
installation fee of $3850 and an ongoing monthly fee of $3,850 and
in NY11-4 for an installation fee of $5,940 and an ongoing monthly
fee of $3, 850. See Rule General 8, Section 1(a).
\9\ The High Density Cabinet is offered in NY11 for an
installation fee of $3850 and an ongoing monthly fee of $4,950 and
in NY11-4 for an installation fee of $5,940 and an ongoing monthly
fee of $4,950. See Rule General 8, Section 1(a).
\10\ The Super High Density Cabinet is offered in NY11 for an
installation fee of $4, 950 and an ongoing monthly fee of $8,800 and
in NY11-4 for an installation fee of $5,940 and an ongoing monthly
fee of $8,800. See Rule General 8, Section 1(a).
\11\ The Ultra High Density Cabinet is offered in NY11-4 for an
installation fee of $5,940 and an ongoing monthly fee of $7,230. The
Ultra High Density Cabinet is not available in NY11. See Rule
General 8, Section 1(a).
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Proposed Power Delivered Model
The Exchange is now proposing (i) to eliminate all such size- and
density range-based cabinet offerings under Rule General 8, Section
1(a), including their respective ongoing monthly fees, and (ii) replace
them with two cabinet offerings, consisting of a single cabinet as well
as a half cabinet option, with their respective cabinet installation
fees unchanged from current cabinet installation fees under Rule
General 8, Section 1(a).\12\ Unlike today, however, the Exchange is not
proposing ongoing monthly fees under Rule General 8, Section 1(a) for
cabinets throughout the data center campus, including NY11, and NY11-4.
Rather, as discussed above, the Exchange proposes to eliminate ongoing
monthly fees for cabinets under Rule General 8, Section 1(a) and
introduce, in turn, a uniform, per kilovolt-amperes (kVA) -based,\13\
ongoing fixed monthly fee for all current power circuit offerings under
proposed Rule General 8, Section 1(c).\14\
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\12\ See proposed Rule General 8, Section 1(a). To effect this
change, the Exchange proposes the following changes to Rule General
8, Section 1(a). The Exchange proposes to delete all cabinet with
power offerings under Rule General 8, Section 1(a) including their
associated installation and ongoing monthly fees, other than the
Half Cabinet offering itself (but not its associated ongoing monthly
fee which the Exchange is proposing to delete), and replace those
offerings with two options: a Cabinet and the currently-offered Half
Cabinet, as discussed above. The Exchange then proposes to move,
unchanged from their current respective amounts, installation fees
for cabinet options in NY11 and NY11-4 by inserting such fees
($3,850 and $5,490, respectively) into the columns titled ``NY11
Installation Fee'' and ``NY11-4 Installation Fee'' under Rule
General 8, Section 1(a). The Exchange proposes to (1) enter, under
the column titled ``Ongoing Monthly Fee'' under Rule General 8,
Section 1(a) for both the Half Cabinet and Cabinet options the
following: ``N/A,'' and (2) delete, from the ``Ongoing Monthly Fee''
for the Half Cabinet option under Rule General 8, Section 1(a) the
amount ``$2,200.'' The Exchange further proposes a non-substantive
change to move the symbol ``[dagger]'' from its various current
locations within the table at Rule General 8, Section 1(a) to the
caption for the column titled ``NY11-4 Installation Fee'' (and
adjacent to the word ``Fee'') so as to denote, unchanged from the
symbol's significance, as stated in its accompanying footnote, that
cabinets under the column designated with that symbol include a
larger cabinet (32'' W x 48'' D x 91'' H). Finally, the Exchange
proposes to delete from Rule General 8, Section 1(a), all
accompanying notes, other than those designated with the following
symbols: single asterisk (``*'') (noting that such cabinets are not
available to new users) as well as the symbol ``[dagger]'' as
discussed above. The Exchange is also proposing a non-substantive
change to move, with a non-substantive clarifying change, the
accompanying note to Rule General 8, Section 1(a) (providing that
cabinet power cap is based on the available power at 80% of the
breakered capacity of all circuit pairs within a cabinet (where a
primary/redundant circuit pair is considered a single circuit)) to
Rule General 8, Section 1(c). The Exchange proposes a clarifying
change to that footnote to clarify that it is the circuit cap,
rather than the cabinet power cap, that is based on the available
power at 80% of the breakered capacity of all circuit pairs within a
cabinet (where a primary/redundant circuit pair is considered a
single circuit)). The Exchange notes this longstanding rule does not
affect pricing, however, as fees are based on 100% of the circuit
capacity. The proposed change is clarifying in nature and non-
substantive because in all cases power caps are associated with
power circuits rather than cabinet density, such that the proposed
changes would render the note more accurate and easier to
understand. As a conforming change, the Exchange proposes to
designate that note with a double asterisk (**) and add the double
asterisk to the caption to Rule General 8, Section 1(c) (Cabinet
Power) to facilitate references to that note. The Exchange believes
this proposed change would facilitate the understanding of and
application of the Exchange's rules because associated cabinet
density options are being eliminated under this proposal, and
Section 1(c) of Rule General 8 addresses cabinet power, to which
this note is more closely related.
\13\ Kilovolt-Amperes (kVA) is a unit of apparent power used to
describe the capacity of electrical circuits and equipment. In
alternating current (AC) systems, power consists of two components:
real power (kW) and reactive power (kVAR). Real power, or kW, is the
actual usable power that performs work, such as running servers or
cooling systems, whereas reactive power, or kVAR, is the power that
sustains the magnetic and electric fields in equipment but does not
perform useful work. Because AC systems often have both real and
reactive components, kVA measures the total apparent power, which is
the combination of real and reactive power--the full load the
circuit must carry. The relationship between kilowatts and kVA
depends on the power factor (PF) which reflects how efficiently
electrical power is converted into useful work: kW = kVA x PF. In
the context of data center operations, electrical power is commonly
expressed in two units: kilowatts (kW) and kilovolt-amperes (kVA).
While these terms measure different aspects of electrical power--kW
representing real power consumed by equipment and kVA representing
apparent power supplied--they are closely correlated in environments
where the power factor approaches unity. Modern data centers
typically operate at or near a power factor of 1.0, resulting in
minimal variance between kW and kVA. Accordingly, these measures, kW
and kVA, are often treated as interchangeable for practical
purposes.
\14\ As discussed above, the Exchange proposes to retain the
Half Cabinet offering under Rule General 8. Section 1(a) as well as
its related footnote (as designated with a single asterisk)
clarifying that such Half Cabinets are not available to new
subscribers. See proposed Rule General 8, Section 1(a).
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Specifically, the Exchange would establish a power-supplied-based,
uniform ongoing monthly fee of $550.00 per kVA \15\ to be applied to
each power circuit offering under Rule General 8, Section 1(c), thus
resulting in a fixed ongoing monthly fee for each of the various power
circuit options under that section, as shown in Table 1 \16\ below.\17\
[[Page 4746]]
Table 2, in turn, provides the basis for the fixed monthly fee
calculations.\18\ As in the case of cabinet installation fees under
Rule General 8, Section 1(a), all cabinet power circuit installation
fee amounts under Rule General 8, Section (c) would remain
unchanged.\19\
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\15\ As discussed below, the proposed amount of $550 per kVA is
within the current effective rate of $482-$763/kW and operates as a
mid-band per kVA price (applied equally to all cabinet power circuit
options offered by the Exchange under Rule General 8, Section 1(c))
to keep applicable fees balanced across user profiles.
\16\ In Tables 1-3 and throughout this proposal, the Exchange
uses the terms ``110 V'' and ``120 V.'' In North America,
residential and light-commercial electrical systems are nominally
standardized at 120 volts, but the terms ``110V,'' ``115V,'' and
``120V'' are often used interchangeably. This is because they all
refer to the same electrical system, not meaningfully different
ones. Historically, early electrical grids in the U.S. operated
closer to 110-115 volts. As infrastructure improved and electrical
demand increased, utilities gradually raised the nominal voltage to
120 volts to improve efficiency and performance. Rather than
replacing all existing equipment, standards were set so devices
could operate safely across a voltage tolerance range, typically
about <plus-minus>5% to <plus-minus>10%. A subsequent clean-up
filing will update the Exchange's rulebook to uniformly list the 20
amp 110 volt and the 30 amp 110 volt circuits to 120 volt throughout
its rulebook, consistent with current standards.
\17\ In Table 1 (as in Exhibit 5), additions are italicized, and
deletions are bracketed. To effect these changes, the Exchange
proposes to amend Rule General 8, Section 1(c) as follows. The
Exchange proposes to (1) insert, in the column titled ``Installation
Fee'' the acronym ``NY11,'' and move, unchanged from current
amounts, fees designated with the symbol single asterisk (``*'') to
a new column titled ``NY11-4 Installation Fee''; (2) insert, in the
column titled ``Ongoing Monthly Fee'' the acronym ``NY11'' and the
parenthetical ``($550 per kVA),'' and then delete, from that current
column titled ``Ongoing Monthly Fee'' all fees currently depicted
thereunder (in each instance such fee being $0), and insert, in
their place, each of the proposed ongoing monthly fees in Table 1
for the respective power circuit options under Rule General 8,
Section 1(c), other than those depicted with a single asterisk,
which are designated for NY11-4; and (3) insert a new column titled
``NY11-4 Ongoing Monthly Fee ($550 per kVA)'' and insert thereunder
all proposed ongoing monthly fees shown in Table 1 for power circuit
options designated with a single asterisk indicating, unchanged from
today, that such cabinets are available in NY11-4 only. The Exchange
proposes to enter ``N/A'' as applicable throughout Rule General 8,
Section 1(c) to indicate that certain fees are not applicable, as
appropriate. See proposed Rule General 8, Section 1(c).
\18\ The figure (``2X'') as used in Tables 1-3 and throughout
this proposal designates the Exchange's provision of both a primary
and secondary circuit. The Exchange does not include the secondary
circuit in the calculation of the proposed fees.
\19\ See proposed Rule General 8, Section 1(c). As discussed
above, the Exchange is also proposing a non-substantive change to
move, with one clarifying change from its current form, the
accompanying note to Rule General 8, Section 1(a) (providing that
cabinet power cap is based on the available power at 80% of the
breakered capacity of all circuit pairs within a cabinet (where a
primary/redundant circuit pair is considered a single circuit) to
the notes in Rule General 8, Section 1(c). The Exchange proposes a
clarifying change to that footnote to clarify that it is the circuit
cap, rather than the cabinet power cap, that is based on the
available power at 80% of the breakered capacity of all circuit
pairs within a cabinet (where a primary/redundant circuit pair is
considered a single circuit)). The proposed change is clarifying in
nature and non-substantive because in all cases power caps are
associated with power circuits rather than cabinet density, such
that the proposed changes would render the note more accurate and
easier to understand. See proposed Rule General 8, Section 1(c). The
80% capacity rule is a safety and reliability standard applied in
data centers to ensure that electrical circuits are not operated at
their full breakered capacity. Instead, the usable power is capped
at 80% of the circuit's rated capacity. This practice is based on
the National Electrical Code (NEC) guidelines for continuous loads,
which require derating to prevent overheating and allow for
operational headroom. This rule does not affect pricing, however, as
fees are based on 100% of the circuit capacity.
Table 1 \20\
--------------------------------------------------------------------------------------------------------------------------------------------------------
NY11 Ongoing monthly NY11-4 Ongoing monthly
Description NY11 Installation fee NY11-4 Installation fee fee ($550 per kVA) fee ($550 per kVA)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2x20 amp 110volt.................................... $2,200 N/A [$0]$1,320.00 N/A
2x30 amp 110 volt................................... 2,200 N/A [$0]$1,980.00 N/A
2x20 amp 208 volt................................... 2,200 N/A [$0]$2,288.00 N/A
2x30 amp 208 volt................................... 2,200 N/A [$0]$3,432.00 N/A
2x60 amp 208 volt................................... 3,300 N/A [$0]$6,864.00 N/A
Phase 3 2x 20 amp 208 volt.......................... 3,300 N/A [$0]$3,962.82 N/A
Phase 3 2x 30 amp 208 volt.......................... 3,300 N/A [$0]$5,944.22 N/A
Phase 3 2x 40 amp 208 volt.......................... 3,300 N/A [$0]$7,925.63 N/A
Phase 3 2x 50 amp 208 volt.......................... 3,300 N/A [$0]$9,907.04 N/A
Phase 3 2x 60 amp 208 volt.......................... 3,300 N/A [$0]$11,888.45 N/A
2x30 amp 48 volt DC................................. 3,300 N/A [$0]$792.00 N/A
Phase 1 20 amp 240 volt *........................... [3,600] $3,600 [$0] N/A $2,640.00
Phase 1 32 amp 240 volt *........................... [3,600] 3,600 [$0] N/A 4,224.00
Phase 1 40 amp 240 volt *........................... [3,600] 3,600 [$0] N/A 5,280.00
Phase 3 20 amp 415 volt*............................ [4,560] 4,560 [$0] N/A 7,906.58
Phase 3 32 amp 415 volt *........................... [4,560] 4,560 [$0] N/A 12,650.53
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\20\ The ongoing monthly fees depicted in Tables 1 and 2 are
derived by multiplying the circuit's apparent power (kVA) by $550
per kVA. The kilovolt-ampere (kVA) rating for each circuit was
calculated using standard electrical formulas based on circuit type
as follows. Single-phase circuits: ``kVA''= (``Volts'' x''Amps'')/
1000. This converts the product of voltage and current into
kilovolt-amperes. Three-phase circuits (balanced load): ``kVA''=
([radic]3x''Volts'' x''Amps'')/1000[ap] (1.732x''Volts'' x''Amps'')/
1000. The factor [radic]3 accounts for the three-phase power
configuration. These formulas were applied to each circuit type in
the table to determine its kVA capacity, which was then multiplied
by the proposed rate of $550 per kVA to calculate the new monthly
fee. For readability, table values reflect rounded kVA figures
(e.g., a three-phase 30-amp, 208-volt circuit is displayed as 10.81
kVA) and fees rounded to the nearest cent. In internal calculations,
the Exchange compute fees using full-precision kVA (e.g., ~10.794
kVA before display rounding), which can yield penny-level variances
relative to fees computed from rounded kVA values. These minor
differences arise solely from the sequence of rounding (rounding kVA
before vs. after fee computation) and do not affect the uniform
application of the $550/kVA rate or the comparability of fees across
circuit options. The Exchange notes that the initial filing (SR-
GEMX-2025-37) contained minor errors in calculation of the proposed
ongoing monthly fees under proposed Rule General 8, Section 1(c).
The Exchange has addressed those errors and will bill customers for
the correct amounts accordingly.
Table 2 \21\
------------------------------------------------------------------------
Proposed monthly
Description kVA per Cir fee
------------------------------------------------------------------------
2x20 amp 120 volt................. 2.4 $1,320.00
2x30 amp 120 volt................. 3.6 1,980.00
2x20 amp 208 volt................. 4.16 2,288.00
2x30 amp 208 volt................. 6.24 3,432.00
2x60 amp 208 volt................. 12.48 6,864.00
Phase 3 2x 20 amp 208 volt........ 7.21 3,962.82
Phase 3 2x 30 amp 208 volt........ 10.81 5,944.22
Phase 3 2x 40 amp 208 volt........ 14.41 7,925.63
Phase 3 2x 50 amp 208 volt........ 18.01 9,907.04
Phase 3 2x 60 amp 208 volt........ 21.62 11,888.45
2x30 amp 48 volt DC............... 1.44 792.00
[[Page 4747]]
Phase 1 20 amp 240 volt *......... 4.8 2,640.00
Phase 1 32 amp 240 volt *......... 7.68 4,224.00
Phase 1 40 amp 240 volt *......... 9.6 5,280.00
Phase 3 20 amp 415 volt*.......... 14.38 7,906.58
Phase 3 32 amp 415 volt *......... 23.0 12,650.53
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Transitioning to the Power Delivered Model
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\21\ In Table 2 and throughout this proposal, the kilovolt-
ampere (kVA) rating for each circuit was calculated using standard
electrical formulas based on circuit type as follows. Single-phase
circuits: ``kVA''= (``Volts'' x ''Amps'')/1000. This converts the
product of voltage and current into kilovolt-amperes. Three-phase
circuits (balanced load): ``kVA''= ([radic]3 x ''Volts'' x
''Amps'')/1000[ap] (1.732 x ''Volts'' x''Amps'')/1000. The factor
[radic]3 accounts for the three-phase power configuration. These
formulas were applied to each circuit type in the table to determine
its kVA capacity, which was then multiplied by the proposed rate of
$550 per kVA to calculate the new monthly fee.
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As discussed above, the Exchange currently offers several cabinet
options the fees for which are based on varying power density ranges.
As the Exchange transitions to the proposed power-delivered model,
customers would transition to that model by structuring their power
circuit selections under proposed Rule General 8, Section 1(c) to
support the workload capacity supported under the cabinets held under
current Rule General 8, Section 1(a). For example,\22\ a customer using
a Super High Density Cabinet offering a power density range greater
than 10 kW \23\ and less than or equal to 17.3 kW \24\ in NY11 with a
flat monthly fee of $8,800 would have several options for structuring
its power circuit options under proposed Rule General 8, Section 1(c).
The customer could select, for example, the Phase 3, 2 x 50 amp, 208V
circuit (18.01 kVA), which approximates the high end of the current
cabinet's power density range of 17.3 kW for a monthly fee of $9,
907.04. Alternatively, the customer could select the Phase 3, 2 x 30
amp, 208 volt circuit (10.81 kVA) to align itself with the lower end of
the current cabinet density range--currently at the same flat fee of
$8,800 per month and as proposed $5,944.22 per month--and reduce its
monthly costs by $2,855.78. Similarly, customers using an Ultra High
Density Cabinet with a cabinet density greater than 10 kW and less than
or equal to 15 kW (at a current monthly fee of $7,230.) could select
the Phase 3 20 amp 415 volt circuit (14.38 kVA) at a recurring monthly
fee of $7,906.58. A customer with a High Density Cabinet offering a
density greater than 7 kW and less than or equal to 10 kW at $4,950 per
month could select a Phase 3, 2 x 30 amp 208 volt circuit (10.81 kVA)
at $5,944.22 per month; alternatively, the customer could select the
Phase 3, 2 x 20 amp 208 vol (7.21 kVA) circuit at the lower end of its
current density for $3,962.82 per month. Customers with a Medium High
Density Cabinet offering densities greater than 5 kW and less than or
equal to 7 kW currently at $3,850 per month could select a 2 x 30 amp,
208 volt circuit (6.24 kVA) at $3,432 per month or the 2 x 20 amp 208
volt circuit (4.16 kVA) at $2,288 per month. Customers with a Medium
Density Cabinet offering densities greater than 2.88 kW and less than
or equal to 5 kW at a current monthly fee of $2,750 could select a 2 x
20 amp 208 volt circuit (4.16 kVA) at $2,288 per month or a 2 x 30 amp
110/120 volt (3.6 kVA) circuit at $1,980 per month. Finally, customers
with a Low Density Cabinet offering densities less than or equal to
2.88 kW at an ongoing monthly fee of $2,200 could select a 2 x 20 amp
110/120 volt circuit (2.4 kVA) at $1,320 per month.
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\22\ The examples that follow are for illustrative purposes
only, as customers are free to select the power circuit options that
best suit their business needs.
\23\ For simplicity, assume power factor [ap] 1 (common in data
centers), so:10 kW [ap] 10 kV.
\24\ For simplicity, assume power factor [ap] 1 (common in data
centers), so:17.3 kW [ap] 17.3 kV.
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Table 3 below shows power circuit options under proposed Rule
General 8, Section 1(c) that could be selected \25\ to align with the
high and lower end of the current cabinet density ranges under Rule
General 8, Section 1(a), including associated changes in fees. While
the table depicts a single power circuit at the approximate ends of the
current cabinet density ranges for illustrative purposes, the Exchange
notes that under the proposed power delivered model, clients are free
to select multiple circuits per cabinet to achieve their desired power
preferences. Under the current cabinet density-based model, clients are
limited to the maximum power density allowed for their selected cabinet
type. For example, a client using a Phase 3, 60-amp, 208-volt circuit
(21.62 kVA) in combination with a Super High Density Cabinet would pay
full fees for that power circuit but would only be authorized to draw
up to 17.3 kW of power. Under the proposed billing model, subject to
the 80% rule discussed above, clients may use the full power provided
by their chosen circuits without being constrained by rigid cabinet
density ranges in place today.
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\25\ The examples depicted in Table 3 are for illustrative
purposes only, as customers are free to select the power circuit
options that best suit their business needs.
Table 3 \26\
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Cabinet type (density range) Circuit type kVA Current fee New fee [Delta] %
----------------------------------------------------------------------------------------------------------------
Low Density (<=2.88 kW)....... 20A 120V........ 2.4 $2,200 $1,320 -40
30A 120V........ 3.6 2,200 1,980 -10
Medium Density (>2.88-<=5 kW). 30A 120V........ 3.6 2,750 1,980 -28
20A 240V........ 4.8 2,750 2,640 -4
Medium-High Density (>5-<=7 30A 208V........ 6.24 3,850 3,432 -10.86
kW).
30A 120V, 30A 7.2 3,850 3,960 2.86
120V.
High Density (>7-<10 kW)...... 30A 208V........ 6.24 4,950 3,432 -30.67
40A 240V........ 9.6 4,950 5,280 6.67
Ultra High Density (>10-<=15 20A 415V (Phase 14.38 7,230 7,906.58 9.36
kW). 3).
[[Page 4748]]
(Same circuit -- -- -- --
used for upper
end).
Super High Density (>15-<=17.3 60A 208V (Phase 21.62 8,800 11,891 35.13
kW). 3).
32A 415V (Phase 23.0 8,800 12,650.53 43.76
3).
----------------------------------------------------------------------------------------------------------------
The Exchange believes that pricing the offered services on a per
kVA basis, as proposed, will allow the Exchange the operational
flexibility to offer clients the maximum available power from the power
circuits selected. Specifically, because the proposed fee structure
eliminates cabinet density-based distinctions, including their
associated fixed ongoing monthly fees, and replaces those distinctions
with a single per-kVA-based monthly fee of $550 per kVA delivered that
is uniformly applied to the capacity of the customer's power circuit
selection under Rule General 8, Section (c), customers in the lower
density cabinet ranges are likely to experience a decrease in overall
fees while customers in the higher cabinet density ranges are likely to
see increases.
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\26\ In Table 3, the kilovolt-ampere (kVA) rating for each
circuit was calculated using standard electrical formulas based on
circuit type as follows. Single-phase circuits: ``kVA'' = (``Volts''
x ''Amps'')/1000. This converts the product of voltage and current
into kilovolt-amperes. Three-phase circuits (balanced load): ``kVA''
= ([radic]3 x ``Volts'' x ``Amps'')/1000 [ap] (1.732 x ''Volts'' x
''Amps'')/1000. The factor [radic]3 accounts for the three-phase
power configuration. These formulas were applied to each circuit
type in the table to determine its kVA capacity, which was then
multiplied by the proposed rate of $550 per kVA to calculate the new
monthly fee. The examples depicted in this table are for
illustrative purposes only, as customers are free to select the
power circuit options that best suit their business needs.
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Overall, the proposal introduces a transparent and equitable
delivery-based pricing model that equitably allocates fees and removes
complexity, consistent with requirements under the Act.
The Exchange believes that the proposed changes are better aligned
with current industry practices, which base billing on power supplied
rather than cabinet footprint. Under the current cabinet density model,
customers select from cabinet options designed to accommodate a range
of power densities, up to approximately 17 kW. This approach often
resulted in misalignment between costs and actual usage because pricing
was tied to cabinet size and density tiers rather than the actual power
delivered. For example, under the cabinet-density pricing model,
customers operating at the lower end of a given cabinet's power-density
range were assessed the same fixed ongoing monthly fee as customers
operating at the higher end of that range, because pricing was tied to
the cabinet's density tier rather than the deployed power circuit.
By contrast, the proposed per-kVA pricing model directly reflects
the actual power delivered to the customer's circuits, ensuring that
charges correspond to the infrastructure resources delivered. This
power delivery-based approach inherently simplifies cost planning. In
short, billing on a per-kVA basis promotes transparency and
flexibility, aligning fees with real power demand and enabling the
Exchange to accommodate evolving customer requirements with greater
transparency and efficiency.
Increases associated with the proposal will better enable the
Exchange to continue to maintain and improve its market infrastructure
technology and services. The Exchange notes that the proposed fee of
$550 per kVA is comparable to fees charged by at least one other
national securities exchange for a similar product. Specifically, the
New York Stock Exchange (``NYSE'') offers a tiered, per kW monthly fee
for cabinets ranging from $900 to $1,200 per kW based on the total kWs
allocated to all of a user's dedicated cabinets.\27\ Under the NYSE
schedule, for example, a customer requesting 10kW at NYSE would pay a
monthly fee of $10,500 per month (10kW x $1,050 per kW per month),
whereas a customer requesting ~ 10kW under the proposed model at the
Exchange could install a Phase 3 30 amp, 208 volt circuit for 10.81 kVA
\28\ for a total charge of $5,944.22 per month (10.8 kVA x $550 per kVA
per month).\29\
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\27\ NYSE's per kW Monthly Fee is a factor of the total number
of kilowatts allocated to all of a User's dedicated cabinets and
varies based on the total kilowatts allocated to a User. See New
York Stock Exchange LLC Connectivity Fee Schedule, 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>. Most modern data centers
typically operate at or near a power factor of 1.0, resulting in
minimal variance between kW and kVA such that the two measures are,
for comparison purposes and given this assumed PF factor,
interchangeable.
\28\ To convert 30 amps at 208 volts to kVA, we use the formula:
kVA = Volts x Amps/1000. For single phase: kVA = 208 x 30 = 6.24
kVA/1000. For three-phase (assuming a balanced load): kVA = 1.732 x
208 x 30 = 10.81 kVA 1000, 1.732 is derived from [radic]3. As
discussed above, modern data centers typically operate at or near a
power factor of 1.0, resulting in minimal variance between kW and
kVA. Accordingly, these measures are often treated as
interchangeable for practical purposes. NYSE uses a tiered monthly
fee per kW, ranging from $900 to $1,200 per kW depending on the
total allocated power across a user's cabinets. Using PF [ap] 1.0,
that translates to $900-$1,200 per kVA.
\29\ NYSE charges a tiered monthly fee per kW, ranging from $900
to $1,200 per kW, depending on the total kilowatts allocated across
all cabinets. For example, a customer requesting 10 kW at NYSE would
pay approximately $10,500 per month (10 kW x $1,050 per kW). The
Exchange proposes a flat monthly fee of $550 per kVA for the full
theoretical capacity of the circuit. For example, a Phase 3, 30-amp,
208-volt circuit provides approximately 10.81 kVA (1.732 x 208 x 30
/ 1000) for a monthly fee of $5,944.22 ($550 x 10.81).
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The Exchange believes that its proposed pricing model is more
transparent and equitable because it directly ties fees to the actual
power delivered and the infrastructure required to support that
capacity (power and cooling). This eliminates distortions inherent in
tiered pricing, where customers with similar power needs may pay
significantly different amounts based on density classifications. By
linking charges to delivered power, the proposal enhances transparency
and predictability. Costs scale with actual power delivered, and
customers can avoid sudden price jumps when moving between tiers. Under
the proposed structure, every kVA is priced the same, making it easier
for customers to forecast expenses, compare across providers, and
understand the relationship between costs and their selected power
delivery preferences.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\30\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\31\ 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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\30\ 15 U.S.C. 78f(b).
\31\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes that the proposal to restructure its cabinet
and cabinet power connectivity schedule to provide for a delivery-based
model that
[[Page 4749]]
eliminates cabinet density-based distinctions, along with their
associated monthly fees, and establishes in its place a uniform ongoing
monthly fee of $550 per kVA fee as applied to each offered cabinet
power circuit options is reasonable. First, the Exchange's proposal to
establish a $550 per kVA fee to be applied to the various power circuit
options offered by the Exchange is reasonable because the proposed
amount of $550 per kVA is within the current effective rate of $482-
$763/kW and operates as a mid-band per kVA price (applied equally to
all cabinet power circuit options offered by the Exchange under Rule
General 8, Section 1(c)) to keep applicable fees balanced across user
profiles. As discussed above, the Exchange is proposing to keep all
cabinet and cabinet power installation fee amounts under Rule General
8, Sections 1(a) and (c) unchanged. Second, and as discussed above, the
proposed per kVA fee of $550 per kVA is reasonable as compared to per
kVA fees for comparable products offered by NYSE. By linking charges to
delivered power, the proposal enhances transparency and predictability
as customers avoid price jumps when moving between tiers because costs
scale with power delivered. By comparison, NYSE's model assesses $900-
$1,200 per kW per month based on a user's aggregate dedicated-cabinet
footprint, introducing higher per kVA prices, tier transitions, and
variability that the Exchange's uniform $550/kVA model avoids.
The Exchange's proposal to replace cabinet-density based pricing
with a per-kVA power delivery model equitably allocates fees based on
the primary cost driver of co-location services--electrical power
capacity and associated cooling--rather than cabinet density range-
based footprint. Under the current model, two customers occupying the
same cabinet density could incur identical fees despite materially
different power demands, resulting in misalignment between fees and the
customer's power usage. By charging according to committed and
delivered kVA, the Exchange ensures that fees are reasonable and
proportionate to the allocated infrastructure resources consistent with
Section 6(b)(4).
As discussed above, the fee increases resulting from the proposed
changes would support the Exchange's ongoing investments in market
infrastructure and co-location services, ensuring competitiveness with
peer exchanges. Customer demand for more robust and higher power
cabinet options has grown significantly over time. In response, the
Exchange has continued to invest in its data center operations to meet
these evolving needs, consistent with applicable regulatory
requirements. These investments include modernizing equipment and
expanding the Exchange's co-location facilities to provide customers
with additional space and power capacity, thereby providing customers
with additional options for addressing their business needs. It is
reasonable and consistent with the Act for the Exchange to recoup its
investments, at least in part, by adjusting its fees.
The proposal is also not designed to permit unfair discrimination
under Section 6(b)(5). The per-kVA pricing structure applies uniformly
to all co-location users based on objective, market infrastructure
technology-neutral criteria (power capacity requested and delivered),
without regard to customer identity, membership status, or business
model. Differences in fees reflect only differences in service
requested and installed, which is a permissible and non-discriminatory
basis for differentiation under the Act. The Exchange further believes
that the proposed fee changes are not unfairly discriminatory because
the proposed cabinet and cabinet power circuit options are available to
and assessed uniformly across all market participants.
The Exchange believes that the proposed conforming and other non-
substantive changes, including those to Rule General 8, Section 1, are
appropriate because they align related parts of the Exchange's rulebook
with the proposed changes or otherwise clarify and facilitate the
application of the Exchange's rules.
Accordingly, the Exchange believes that the proposed rule change is
consistent with Sections 6(b)(4) and 6(b)(5) of the Act because it
provides for the equitable allocation of reasonable fees and is not
designed to permit unfair discrimination.
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.
Nothing in the proposal burdens inter-market competition because
approval of the proposal does not impose any burden on the ability of
other exchanges to compete. The Exchange operates in a highly
competitive market in which market participants can determine whether
to connect to the Exchange based on the value received compared to the
cost of doing so.
Nothing in the proposal burdens intra-market competition because
the proposed cabinet, half cabinet, and cabinet power options are
available to any customer under the same fees as any other customer,
and any customer that wishes to order cabinets and cabinet power
options can do so on a non-discriminatory basis.
Co-location services are optional and offered in a highly
competitive environment among multiple exchanges and third-party data
center providers. Market participants that do not wish to pay for co-
location services under the revised pricing model may continue to
access the Exchange through alternative connectivity methods or utilize
competing venues.
The proposed shift from cabinet-based pricing to a per-kVA power
delivery model is designed to align fees with the actual resource
delivered and infrastructure investments, rather than fixed cabinet
density ranges. This change does not restrict access or favor any
category of participant; all eligible users are subject to the same
fees and terms based on objective criteria (committed and delivered
power capacity). Accordingly, the proposal does not create any undue
burden on intermarket competition, as participants can choose among
multiple exchanges and service providers, nor does it impose an undue
burden on intramarket competition, as all co-location customers are
treated uniformly under the proposed fee structure, as described above.
To the extent the proposal may affect competition, the Exchange
believes that the impact is positive because the revised pricing
structure promotes cost transparency and fairness, thereby enabling
customers to more easily plan for and compare infrastructure expenses,
as well as tailor their connectivity selections to suit their specific
business needs.
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.\32\
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\32\ 15 U.S.C. 78s(b)(3)(A)(ii).
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[[Page 4750]]
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#3341465f561e505c5e5e565d4740734056501d545c45"><span class="__cf_email__" data-cfemail="c0b2b5aca5eda3afadada5aeb4b380b3a5a3eea7afb6">[email protected]</span></a>. Please include
file number SR-GEMX-2026-03 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-2026-03. 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-2026-03 and should be submitted on
or before February 23, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
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\33\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-01975 Filed 1-30-26; 8:45 am]
BILLING CODE 8011-01-P
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