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Notice2026-05560

Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Designated Liquidity Provider and Market Quality Supporter Programs in Equity 7, Section 114

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Published

March 23, 2026

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 91 Issue 55 (Monday, March 23, 2026)</title>
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[Federal Register Volume 91, Number 55 (Monday, March 23, 2026)]
[Notices]
[Pages 13893-13897]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-05560]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-105044; File No. SR-NASDAQ-2026-018]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Designated Liquidity Provider and Market Quality Supporter
Programs in Equity 7, Section 114

March 18, 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 March 11, 2026, The Nasdaq Stock Market LLC (``Nasdaq'' 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 the Exchange's incentive program for
Exchange-Traded Products (``ETPs'') in Equity 7, Section 114 by: (1)
amending the market quality metrics (``Market Quality Metrics'' or
``MQMs'') in the Designated Liquidity Provider (as defined below) and
Market Quality Supporter (as defined below) programs; (2) clarifying
how the auction spread metrics in the Designated Liquidity Provider and
Market Quality Supporter programs are measured today; and (3) modifying
how the Exchange will treat new allocations and new launches of ETPs
under the Designated Liquidity Provider and Market Quality Supporter
programs.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/nasdaq/rulefilings">https://listingcenter.nasdaq.com/rulebook/nasdaq/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 purpose of the proposed rule change is to amend the Exchange's
incentive program for ETPs in Equity 7, Section 114 by: (1) amending
the Market Quality Metrics in the Designated Liquidity Provider \3\
(``DLP'') and Market Quality Supporter \4\ (``MQS'') programs; (2)
clarifying how the auction spread metrics in the DLP and MQS programs
are measured today; and (3) modifying how the Exchange will treat new
allocations and new launches of ETPs under the DLP and MQS programs.
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\3\ A ``Designated Liquidity Provider'' is a registered Nasdaq
market maker for a Qualified Security that has committed to maintain
minimum performance standards. A DLP is selected by Nasdaq based on
factors including, but not limited to, experience with making
markets in exchange-traded products, adequacy of capital,
willingness to promote Nasdaq as a marketplace, issuer preference,
operational capacity, support personnel, and history of adherence to
Nasdaq rules and securities laws.
\4\ A ``Market Quality Supporter'' has committed to maintain
minimum performance standards in Low Volume ETPs as defined in
Equity 7, Section 114(g)(4)(A). A MQS is selected by Nasdaq based on
factors including, but not limited to, experience with making
markets in exchange-traded products, adequacy of capital,
willingness to promote Nasdaq as a marketplace, issuer preference,
operational capacity, support personnel, and history of adherence to
Nasdaq rules and securities laws. See Equity 7, Section 114(g)(2).
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The Exchange initially filed the proposed pricing changes on March
2, 2026 (SR-NASDAQ-2026-011). On March 11, 2026, the Exchange withdrew
that filing and submitted this filing.
Background
Today, pursuant to Equity 7, Sections 114(f) and 114(g), the
Exchange maintains a DLP program and MQS program, each of which are
designed to enhance liquidity and market quality in Nasdaq-listed ETPs
by providing incentives to the DLP or MQS for an ETP that is designated
as a Qualified Security.\5\ The MQS program is designed to complement
the DLP program by allowing up to three MQSs per Nasdaq-listed ETP to
support market quality for Low Volume ETPs.\6\ As set out in Equity 7,
Section 114(f)(4) and Section 114(g)(4), the DLP and MQS programs use
market quality performance standards (``Market Quality Metrics'' or
``MQMs'') based on the ETP's underlying investment strategy, which
determine eligibility for DLP and MQS program incentives.\7\ The MQMs
for the DLP program as set out in Equity 7, Section 114(f)(4)(B) are as
follows:
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\5\ For purposes of the DLP and MQS programs, a security may be
designated as a ``Qualified Security'' if: (A) it is an ETP listed
on Nasdaq pursuant to Nasdaq Rules 5703, 5704, 5705, 5710, 5711,
5713, 5715, 5720, 5735, 5745, 5750 or 5760; and (B) it has one DLP
(for the DLP program) and at least one MQS (for the MQS program).
See Equity 7, Sections 114(f)(1) and (g)(1).
\6\ For purposes of the MQS program, the term ``Low Volume''
ETPs means ETPs with a monthly ADV of 1 million shares or less in
the prior month. See Equity 7, Section 114(g)(4)(A).
\7\ See DLP and MQS Programs Factsheet, available at: <a href="https://www.nasdaq.com/docs/ETF-DLP-Factsheet">https://www.nasdaq.com/docs/ETF-DLP-Factsheet</a>.

[[Page 13894]]

Average Notional Depth within 25 basis $75,000 $40,000 $30,000 $20,000
points of the NBBO......................
Average Spread in basis points........... 25 35 60 100
Auction Reference Price Difference 150 150 150 150
(Opening) of first reference price
within 30 seconds prior to the market
open must be within basis points........
Auction Reference Price Difference 50 50 50 50
(Closing) of first reference price
within 120 seconds prior to the market
close must be within basis points.......
Auction Spread in basis points with 75 105 180 300
$37,500 notional depth (Opening)........
Auction Spread in basis points with 25 35 60 100
$75,000 notional depth (Closing)........
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To be eligible for the DLP incentives, DLPs currently need to meet
5 of the 7 MQMs set forth above, including Auction Spread (both opening
and closing), in the assigned ETP as measured by the Exchange. The
above DLP Market Quality Metrics are measured on average in the
assigned ETP during regular market hours, except for the Auction
Reference Price Difference and Auction Spread metrics that are measured
at and directly before each auction, respectively, against the metrics
and averaged for the period.\8\ A DLP that satisfies the MQMs above
would be eligible to receive the rebates and stipends in Section
114(f)(5) in the relevant ETP that qualified. Further, Section
114(f)(5) currently provides that a DLP is automatically eligible to
receive the relevant rebate or stipend in one of the following
scenarios: (1) for the month of December 2025; or (2) for the current
month of a new DLP allocation of a symbol. In addition, new launches
automatically get the Tier 5 incentive for the current month today.
Accordingly, in the foregoing scenarios, the Exchange waives the MQM
requirements and automatically provides the DLP with the relevant
tiered rebate or stipend in Section 114(f)(5), or in the case of new
launches, the base incentive (i.e., Tier 5).
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\8\ In addition, if a DLP fails to meet the notional thresholds
for the metrics of Time at the NBBO and Auction Spread (both opening
and closing) on a given day, that day will be excluded from those
average calculations, except that the DLP must meet such notional
thresholds at least 50% of the days in a given month. See Equity 7,
Section 114(f)(4)(B).
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As it relates to the MQS program, the MQMs are set out in Equity 7,
Section 114(g)(4)(B) are as follows:

----------------------------------------------------------------------------------------------------------------
Investment Investment Investment
Market quality metrics strategy group A strategy group B strategy group C
ETPs ETPs ETPs
----------------------------------------------------------------------------------------------------------------
Average Notional Depth within 75 basis points of the $125,000 $75,000 $50,000
NBBO..................................................
Average Spread in basis points......................... 35 60 100
Auction Spread in basis points with $37,500 notional 105 180 300
depth (Opening).......................................
Auction Spread in basis points with $75,000 notional 35 60 100
depth (Closing).......................................
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To be eligible for the MQS stipend, MQSs need to meet all of the
MQMs set forth above in the assigned ETP as measured by the Exchange.
The above MQS Market Quality Metrics are measured on average in the
assigned ETP during regular market hours, except for the Auction Spread
metric that is measured directly before each auction against the
metrics and averaged for the period.\9\ A MQS that satisfies the MQMs
above would be eligible to receive the MQS stipend of $175 per month in
the relevant ETP that qualified. Further, Section 114(g)(5) currently
provides that a MQS is automatically eligible to receive the MQS
stipend in one of the following scenarios: (1) for the month of
December 2025; (2) for the current month of a new MQS allocation of a
symbol; or (3) for the current month of a new launch. Accordingly, in
the foregoing scenarios, the Exchange waives the MQM requirements and
automatically provides the MQS with the $175 MQS stipend in Section
114(g)(5).
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\9\ In addition, if a MQS fails to meet the notional thresholds
for the Auction Spread (both opening and closing) metrics on a given
day, that day will be excluded from those average calculations,
except that the MQS must meet such notional thresholds at least 50%
of the days in a given month. See Equity 7, Section 114(g)(4)(B).
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The Exchange now proposes a number of changes to the DLP program
and MQS program.
Proposal 1: Amending the Market Quality Metrics in the DLP and MQS
Programs
The Exchange proposes to amend the MQMs in the DLP and MQS programs
to enhance the effectiveness of the program and better align the
incentives with achievable and meaningful liquidity provision outcomes.
Based on conversations with market participants and the Exchange's
review of the program data, the Exchange has determined that requiring
DLPs and MQSs to meet the Auction Spread (both opening and closing)
metrics have in certain circumstances limited the ability of liquidity
providers to qualify for program incentives under both the DLP and MQS
programs, despite their strong performance across the other Market
Quality Metrics. The Exchange therefore proposes to modify the
qualification standards in the DLP and MQS programs as follows.
<bullet> Under the DLP program, a DLP would still be required to
satisfy 5 of the 7 Market Quality Metrics in Equity 7, Section
114(f)(4)(B). However, the Exchange will no longer require that the
Auction Spread (both opening and closing) metrics be part of the 5 MQMs
that need to be satisfied by the DLP. Accordingly, the requirement that
the DLP must meet the Auction Spread (both opening and closing) metrics
will be eliminated from paragraph (f)(4)(B).
<bullet> Under the MQS program, a MQS will now be required to
satisfy 2 of the

[[Page 13895]]

4 Market Quality Metrics in Equity 7, Section 114(g)(4)(B) instead of
being required to meet all four.
The Exchange will also fix a typo by removing the extra ``the'' in
the first sentence of Section 114(f)(4)(B).
The substance of the current Market Quality Metrics themselves,
including all numerical thresholds, will remain unchanged. The proposed
rule change only modifies the number of metrics that must be satisfied
and eliminates the requirement that any specific metric be mandatory
components of qualification.
Proposal 2: Clarifying How the Auction Spread Metrics in the DLP and
MQS Programs Are Currently Measured
The Exchange proposes to clarify how Auction Spread (opening and
closing) are calculated for purposes of determining eligibility under
the DLP and MQS programs. The proposed change is intended to
memorialize the current calculation in the rule text for clarity.
Specifically, the Exchange will clarify in Section 114(f)(4)(B) (DLP
program) and 114(g)(4)(B) (MQS program) that the Auction Spread (both
opening and closing) metrics will be based on the Nasdaq Market Center
best bid and best offer (``QBBO'') in the assigned ETP directly before
each auction. A DLP or MQS will satisfy the Auction Spread metrics for
a given auction if, directly before such auction, the DLP or MQS
maintains the applicable minimum notional depth amount (e.g., $37,500
for opening) within the applicable basis point range of the QBBO (e.g.,
105 basis points in the opening for Investment Strategy Group A ETPs)
and a bid-ask spread not wider than the applicable basis point range,
as set forth in the table in Section 114(f)(4)(B) (DLP program) or
Section 114(g)(4)(B) (MQS program) for the relevant ETP category and
auction. For example, for Investment Strategy Group A \10\ ETPs in the
opening auction, the Exchange would determine (directly before the
opening auction) whether the DLP or MQS meets the $37,500 notional
depth requirement within 105 basis points of the QBBO. In addition, the
Exchange separately assesses whether the DLP's or MQS's bid-ask spread
is within 105 basis points.
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\10\ Investment Strategy Group A includes government fixed
income, North American or USD denominated developed market fixed
income, developed market equities, and currencies. See DLP and MQS
Programs Factsheet, available at: <a href="https://www.nasdaq.com/docs/ETF-DLP-Factsheet">https://www.nasdaq.com/docs/ETF-DLP-Factsheet</a>.
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The Exchange believes that the proposed clarifications in Sections
114(f)(4)(B) and 114(g)(4)(B) will eliminate potential confusion and
increase transparency about how the Exchange calculates the Auction
Spread metrics today.
Proposal 3: Modifying How the Exchange Will Treat New Allocations and
New Launches of ETPs Under the DLP and MQS Programs
The Exchange proposes to amend how it treats new allocations of
ETPs under the DLP and MQS programs. As discussed above, the Exchange
currently waives the MQM requirements and automatically provides the
applicable rebate or stipend to the DLP and MQS in the above scenarios
(e.g., for the current month of a new DLP or MQS allocation of a
symbol). The Exchange initially adopted this temporary relief back in
December 2025 (along with the current iteration of the DLP and MQS
MQMs).\11\ At the time of adoption, the MQM requirements were evaluated
on a forward-looking basis (i.e., the Exchange looked at the quoting
activity of the current month to determine whether the DLP or MQS
qualified for that month). Thus the waiver was intended provide DLPs
and MQSs with clear visibility into their incentive earnings at the
time of the ETP's launch or allocation. As stated in SR-NASDAQ-2025-
102, this approach is critical as ETPs may launch or be allocated to
DLPs or MQSs at various points throughout the month, potentially
complicating the DLP's or MQS's ability to meet the monthly performance
criteria and making it unclear on what rebates/stipends the program
participants may expect. Furthermore, this approach ensures they have
sufficient runway to quote and maintain liquidity in newly allocated or
newly launched ETPs, which are often initially more thinly traded and
may initially present challenges in meeting liquidity standards.
Ultimately, the Exchange intended for this temporary relief to
encourage greater participation in the incentive programs and allow
DLPs and MQSs to have adequate time to transition to the MQMs.\12\
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\11\ See Securities Exchange Act Release No. 104444 (December
18, 2025), 90 FR 60168 (December 23, 2025) (SR-NASDAQ-2025-102).
\12\ See supra note 11.
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Since then, the Exchange has amended its equity pricing schedule to
implement the changes to Reg NMS Rule 610(d).\13\ As a result of SR-
NASDAQ-2026-007, the Exchange began looking at the DLP's and MQS's
quoting activity in the prior month (instead of the current month) in
order to determine whether the DLP and MQS met the relevant Market
Quality Metrics, thereby reducing the efficacy of the intended
temporary relief.
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\13\ See Securities Exchange Act Release No. 104785 (February 9,
2026), 91 FR 6693 (February 12, 2026) (SR-NASDAQ-2026-007).
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Accordingly, the Exchange proposes to amend the DLP and MQS
programs in a number of ways. First, the Exchange proposes in Section
114(f)(5) to provide that the DLP will automatically be eligible to
receive the relevant rebate or stipend for the current month and the
immediately following month of a new DLP allocation of a symbol. New
launches will automatically get the Tier 5 incentive for the current
month and the immediately following month (new rule text is bolded).
Second, the Exchange proposes in Section 114(g)(5) to provide that the
MQS will automatically be eligible to receive the MQS stipend in one of
the following scenarios: (1) for the current month and immediately
following month of a new MQS allocation; or (2) for the current month
and the immediately following month of a new launch (new rule text is
bolded).
The Exchange also proposes to remove the references to the month of
December 2025 in Sections 114(f)(5) and (g)(5) as obsolete rule text.
The Exchange further proposes to delete the beginning phrase ``For the
current month of a new MQS allocation of a symbol,'' from the last
sentence of Section 114(g)(5), as it is duplicative of the same phrase
later in that sentence. Lastly, the Exchange proposes to fix a typo in
the same sentence.
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
Sections 6(b)(4) and 6(b)(5) of the Act,\15\ 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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\14\ 15 U.S.C. 78f(b).
\15\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange's proposed changes to its schedule of credits are
reasonable in several respects. As a threshold matter, the Exchange is
subject to significant competitive forces in the market for equity
securities transaction services that constrain its pricing
determinations in that market. The fact that this market is competitive
has long been recognized by the courts. In NetCoalition v. Securities
and Exchange Commission, the D.C. Circuit stated as follows: ``[n]o one
disputes that competition for order flow is `fierce.' . . . As the SEC
explained, `[i]n the U.S. national market

[[Page 13896]]

system, buyers and sellers of securities, and the broker-dealers that
act as their order-routing agents, have a wide range of choices of
where to route orders for execution'; [and] `no exchange can afford to
take its market share percentages for granted' because `no exchange
possesses a monopoly, regulatory or otherwise, in the execution of
order flow from broker dealers'. . . .'' \16\
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\16\ NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-
21)).
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The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \17\
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\17\ Securities Exchange Act Release No. 51808 (June 9, 2005),
70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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Numerous indicia demonstrate the competitive nature of this market.
For example, clear substitutes to the Exchange exist in the market for
equity security transaction services. The Exchange is only one of
several equity venues to which market participants may direct their
order flow. Within this environment, market participants can freely and
often do shift their order flow among the Exchange and competing venues
in response to changes in their respective pricing schedules. As such,
the proposal represents a reasonable attempt by the Exchange to
increase its liquidity and market share relative to its competitors.
Proposal 1
The Exchange believes that the proposed changes to the Market
Quality Metrics are reasonable because they recalibrate, but do not
eliminate, the performance standards applicable to DLPs and MQMs to
qualify for the relevant incentives. DLPs must continue to meet the
vast majority of the MQMs (5 out of 7) in order to receive the relevant
incentives. However, the Exchange will no longer require that the
Auction Spread (both opening and closing) metrics be mandatory
components of what needs to be included as part of the five metrics.
All numerical thresholds in the DLP MQMs will remain unchanged. MQSs
will no longer be required to meet all of the MQMs but they would still
need to meet a meaningful amount (at least 2 out of 4) in order to
receive the MQS stipend. The Exchange believes this adjustment is
reasonable because it aligns the qualification standards with
achievable and meaningful liquidity provision outcomes, while still
requiring meaningful market quality performance in order to receive the
MQS stipend. All numerical thresholds in the MQS MQMs will remain
unchanged. As discussed above, the Exchange is proposing these changes
to the DLP and MQS programs upon review of the program data and
feedback from market participants. The proposal therefore refines the
MQM structure in the manner discussed above to enhance the
effectiveness of the DLP and MQS programs, and better align the
incentives with achievable and meaningful liquidity provision outcomes.
The Exchange further believes that the proposed modifications to
the DLP and MQS Market Quality Metrics are equitable and not unfairly
discriminatory because the changes will apply uniformly to all DLPs and
MQSs. The Exchange believes the proposal will fortify participation in
the DLP and MQS programs while continuing to encourage meaningful
liquidity that benefits all market participants.
Proposal 2
As discussed above, the Exchange proposes to clarify how the
Auction Spread (both opening and closing) metrics are calculated today,
including that the metrics are based on the QBBO directly before each
auction and that the metrics require maintaining the applicable
notional depth within the specified basis point range and a bid-ask
spread not wider than that range. The Exchange believes this
clarification is reasonable because it memorializes in the rule text
the current methodology for calculating the metrics. Providing
additional specificity in the rule text will enhance transparency and
reduce potential confusion for market participants. Clear articulation
of the methodology will also promote predictability and allow DLPs and
MQSs to better understand how their performance is evaluated.
The Exchange believes that the proposed changes to clarify how it
currently calculates the Auction Spread (both opening and closing)
metrics are equitable and not unfairly discriminatory because the
changes will apply uniformly to all DLPs and MQSs.
Proposal 3
As discussed above, the Exchange proposes to modify how it treats
new DLP and MQS allocations and new launches by waiving the MQM
requirements and automatically providing the relevant DLP or MQS
incentive during the current month and the immediately following month
of a new allocation or launch. The Exchange believes that the proposed
changes are reasonable because it better aligns with the intended
effect of this temporary relief, as originally adopted.\18\ As
discussed above, the Exchange now evaluates MQMs based on the prior
month's quoting activity (versus the current month) as a result of SR-
NASDAQ-2026-007.\19\ This has reduced the efficacy of the temporary
relief, as originally adopted. Automatically providing the relevant
incentive for the current month and the immediately following month
would help ensure that DLPs and MQSs have clear visibility into their
incentive earnings at the time of the ETP's launch or allocation, as
ETPs may launch or be allocated to DLPs or MQSs at various points
throughout the month. Furthermore, the Exchange believes that the
proposed change will provide DLPs and MQSs adequate time to quote and
maintain liquidity in newly allocated or newly launched ETPs, which are
often initially more thinly traded and may initially present challenges
in meeting liquidity standards. The proposal is therefore intended to
support the development of liquidity in new and transitioning products,
which benefits all market participants, including issuers and
investors.
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\18\ See supra note 11.
\19\ See supra note 13.
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The Exchange further believes that the proposed changes to waive
the MQM requirements and automatically provide the DLP and MQS with the
relevant incentive in the current and immediately following months of a
new allocation or new launch are equitable and not unfairly
discriminatory because the proposed changes will apply to all DLPs and
MQSs. Any Member that becomes a DLP or MQS for a newly allocated or
launched ETP will receive uniform treatment under this proposal.
Furthermore, the proposed relief is temporary and limited in duration.
After the specified two-month period, the DLP or MQS must meet their
MQMs in order to qualify for the relevant incentives. By facilitating
liquidity provision in newly allocated or newly launched ETPs, the
proposal is intended to promote tighter spreads and deeper

[[Page 13897]]

markets during the initial stages of trading in these products. The
Exchange further believes the proposal will fortify participation in
the DLP and MQS programs while continuing to encourage meaningful
liquidity that benefits all market participants.
Lastly, the Exchange believes that the proposed changes in Equity
7, Sections 114(f)(5) and (g)(5) to remove references to the month of
December 2025 and correct minor drafting issues therein are reasonable,
equitable, and not unfairly discriminatory. These are non-substantive
clean-up changes that are intended to enhance rule clarity and
transparency.

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. Specifically, the Exchange does
not believe that the proposed changes discussed above will impose an
undue burden on intra-market competition because the changes will apply
uniformly to all similarly situated market participants. To the extent
the proposed changes result in greater participation in the DLP and MQS
programs, the Exchange believes that the resulting improvement in
market quality in Nasdaq-listed ETPs would benefit all market
participants through additional trading opportunities, tighter spreads,
and enhanced price discovery. Furthermore, the Exchange does not
believe that the proposed changes to waive the MQM requirements and
automatically provide the relevant DLP or MQS incentive during the
current month and the immediately following month of a new allocation
or new launch impose an undue burden on intra-market competition
because the waiver will apply to all DLPs and MQSs. As discussed above,
this approach ensures they have sufficient runway to quote and maintain
liquidity in newly allocated or newly launched ETPs, which are often
initially more thinly traded and may initially present challenges in
meeting liquidity standards. The proposal is therefore intended to
support the development of liquidity in new and transitioning products,
which benefits all market participants, including issuers and
investors.
In terms of inter-market competition, the Exchange notes that it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. In such an environment, the Exchange
must continually adjust its fees to remain competitive with other
exchanges and with alternative trading systems that have been exempted
from compliance with the statutory standards applicable to exchanges.
Because competitors are free to modify their own fees in response, and
because market participants may readily adjust their order routing
practices, the Exchange believes that the degree to which fee changes
in this market may impose any burden on competition is extremely
limited. In sum, if the changes proposed herein are unattractive to
market participants, it is likely that the Exchange will lose market
share as a result. Accordingly, the Exchange does not believe that the
proposed changes will impair the ability of members or competing order
execution venues to maintain their competitive standing in the
financial markets.

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.\20\
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\20\ 15 U.S.C. 78s(b)(3)(A)(ii).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#681a1d040d450b0705050d061c1b281b0d0b460f071e"><span class="__cf_email__" data-cfemail="a5d7d0c9c088c6cac8c8c0cbd1d6e5d6c0c68bc2cad3">[email&#160;protected]</span></a>. Please include
file number SR-NASDAQ-2026-018 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-NASDAQ-2026-018. 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-NASDAQ-2026-018 and should be submitted
on or before April 13, 2026.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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\21\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2026-05560 Filed 3-20-26; 8:45 am]
BILLING CODE 8011-01-P

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