Notice2026-06247
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Designated Date for Removal of the Exchange's Dedicated GPS Antenna Service Under Rule General 8, Section 1(d)
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
April 1, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 62 (Wednesday, April 1, 2026)</title>
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[Federal Register Volume 91, Number 62 (Wednesday, April 1, 2026)]
[Notices]
[Pages 16268-16271]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-06247]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105101; File No. SR-ISE-2026-11]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Extend the
Designated Date for Removal of the Exchange's Dedicated GPS Antenna
Service Under Rule General 8, Section 1(d)
March 27, 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 23, 2026, Nasdaq ISE, LLC (``ISE'' 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 extend the designated date by which
service for existing customers with a dedicated GPS antenna under Rule
General 8, Section 1(d) (Co-Location Services) will terminate and all
dedicated GPS antennas must be removed, 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/ise/rulefilings">https://listingcenter.nasdaq.com/rulebook/ise/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 offers a Global Positioning System (``GPS'') antenna
service, which allows customers that co-locate their servers and
equipment within the Exchange's original data center (``NY 11'') in
Carteret, NJ to synchronize their time recording systems to the U.S.
Government's GPS network time (the ``Service''). GPS network time is
the atomic time scale implemented by the atomic clocks in the GPS
ground control stations and GPS satellites. Each GPS satellite contains
multiple atomic clocks that contribute precise time data to the GPS
signals. GPS receivers decode these signals, synchronizing the
receivers to the atomic clocks. A GPS antenna serves as a time signal
receiver and feeds a primary clock device the GPS network time using
precise time data. Firms can use the precise time data provided by the
GPS antenna to time-stamp transactional information. Time
synchronization services are well established in the U.S. and utilized
in many areas of the U.S. economy and infrastructure. The Service is
not novel to the securities markets, or to the Exchange.
Historically, the Exchange has offered connectivity to a GPS
antenna via two options: over shared infrastructure or a dedicated
antenna.\3\
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\3\ The shared infrastructure provides GPS services through
Nasdaq-installed shared cables and hardware located within the data
center, whereas the dedicated antenna requires the firm to supply
their own privately owned antenna hardware. The dedicated GPS
antenna service was made available only in the Exchange's original
data center hall, NY11. As discussed in this proposal, on September
30, 2025, the Exchange filed to terminate the dedicated GPS antenna
service and associated fees. See Securities Exchange Act Release No.
104200 (Nov. 18, 2025), 90 FR 52778 (Nov. 21, 2025) (SR-ISE-2025-
32). By contrast, the shared GPS antenna service is available in the
NY11, as well as the Exchange's extension area (NY11-4) and its
future extension area (NY11-5).
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Fees for such GPS antenna services are as follows. The installation
fee for the shared connection is $900, and the monthly fee for that
service is $600.\4\ The installation fee for existing clients of the
dedicated GPS antenna is $1,500 and the monthly fee for that service is
$600.\5\
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\4\ See Rule General 8, Section 1(d).
\5\ See SR-ISE-2025-32, supra note 3. Firms may choose to
purchase multiple time synchronization Services for resiliency or
otherwise. The Exchange offers the Service as a convenience to firms
to provide them with the ability to synchronize their own primary
clock devices to GPS time via a shared GPS timing signal and time-
stamp transactional information. Firms do not receive an advantage
by purchasing the service. See id.
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[[Page 16269]]
The Exchange previously submitted a filing to terminate the
dedicated GPS antenna option and associated fee and designate April 1,
2026, as the date by which the dedicated GPS antenna service would be
terminated and all dedicated GPS antennas would be required to be
removed.\6\ Pursuant to that proposal, the Service for existing
customers with a dedicated GPS antenna will terminate as of April 1,
2026, and all dedicated GPS antennas must be removed by such date.\7\
Customers that want to continue to use the Service can request the
shared GPS antenna service.
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\6\ See SR-ISE-2025-32, supra note 3.
\7\ See SR-ISE-2025-32, supra note 3. As further discussed in
that filing, the decision to remove the dedicated GPS antenna
service option is consistent with the Exchange's project to equalize
certain connections across its entire data center campus, including
both its existing NY11 facility and the NY11-4 expansion area (the
``Equalization Project'') and maintain adequate controls of all
cables that run throughout the data center. See Securities and
Exchange Act Release No. 34-101078 (Sep. 18, 2024), 89 FR 77937
(Sep. 24, 2024) (SR-NASDAQ-2024-054) (``Co-Location Expansion
Proposal''). In accordance with the Equalization Project's goal of
ensuring that customers do not bypass the integrity of the equalized
connections maintained throughout the data center, the Exchange is
no longer allowing customers to order dedicated GPS antenna service
as of September 30, 2025. See SR-ISE-2025-32, supra note 3.
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For the reasons discussed below, the Exchange now proposes to
designate a longer period of time for termination of the dedicated GPS
antenna service and associated fee. Specifically, the Exchange proposes
to designate April 30, 2026, as the new date by which such dedicated
GPS antenna service will be terminated and all dedicated GPS antennas
must be removed. As proposed, the Exchange would continue to assess and
charge existing customers of the dedicated GPS antenna service the
established recurring monthly fee of $600.00 \8\ for that service until
April 30, 2026,\9\ prorating such fees as appropriate. The Exchange
would not charge customers the established installation fee for such
service during the proposed extension period because as of September
30, 2025, the Exchange no longer permits new orders for the dedicated
GPS antenna service.\10\ Continuing with the service until the proposed
designated termination date is voluntary, and customers are free to
terminate the dedicated GPS antenna service at any time before the
proposed extension date.
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\8\ As discussed above, fees for the dedicated GPS service
consist of an installation fee of $1,500 and an ongoing monthly fee
of $600.00. See SR-ISE-2025-32, supra note 3.
\9\ The Exchange is proposing to charge only the ongoing monthly
fee of $600.00 until April 30, 2026, prorating such fees as
appropriate. As discussed in this proposal, the Exchange is not
proposing to charge such customers the established installation fee
during the proposed extension period.
\10\ The Exchange is not proposing to assess the installation
fee of $1,500 for that period because, as of September 30, 2025, new
orders for dedicated GPS antenna service are not permitted. See SR-
ISE-2025-32, supra note 3.
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As background, the Exchange had initially scheduled to complete all
installations for the new shared GPS network by March 1, 2026. This
timing would have provided clients with sufficient time to test the new
shared GPS network environment before termination of their dedicated
GPS antenna on April 1, 2026, the previously established dedicated GPS
antenna service termination date. Due to delays in receipt of the
necessary infrastructure to support the new, robust shared GPS network,
however, the completion date for the new shared GPS antenna offering
has changed. The new completion date for that service is now March 27,
2026.
The Exchange believes that extending the designated termination
date for the dedicated GPS antenna service to April 30, 2026, would
allow the Exchange sufficient time to complete installation of the new
shared GPS network without reducing the time available for clients to
test the new shared GPS environment before their dedicated GPS network
is terminated, thus supporting a more coordinated and orderly
transition from one GPS service to another.
Currently, approximately 49% of the Exchange's co-location
customers subscribe to the Service, most of which have opted for the
shared GPS antenna option. The Service is an optional product available
to any firm that chooses to subscribe. Firms may cancel their
subscription at any time. The Service simply provides time
synchronization that may be utilized by firms to adjust their own time
systems and time-stamp transactional information. The GPS antenna
service is offered on a completely voluntary basis. No customer is
required to purchase the GPS antenna. Potential subscribers may
subscribe to the Service only if they voluntarily choose to do so. It
is a business decision of each firm whether to subscribe to the Service
or not. Customers do not receive an advantage by purchasing the Service
from Nasdaq; the Exchange is merely providing access to GPS signals.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\11\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\12\ 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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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange's proposed change to its connectivity service offering
is 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 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'. . . .'' \13\
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\13\ 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.'' \14\
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\14\ Securities Exchange Act Release No. 51808 (June 9, 2005),
70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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As discussed above, approximately 49% of the Exchange's co-location
customers subscribe to the Service and most of them have opted to
subscribe and migrate to the shared antenna.
The Exchange believes that it is reasonable to extend the time
designated for terminating the shared GPS service (and removing all
dedicated GPS antennas) from the currently
[[Page 16270]]
scheduled date of April 1, 2026,\15\ to April 30, 2026, to facilitate
the orderly transition for customers that have opted to migrate to the
Exchange's new, robust shared GPS service. As discussed above, the
Exchange has encountered delays in obtaining the infrastructure
necessary to support the new and robust shared GPS antenna service,
such that the new projected completion date for that service has moved
from March 1, 2026, to March 27, 2026.
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\15\ See SR-ISE-2025-32, supra note 3.
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As noted above, approximately 49% of the Exchange's co-location
customers subscribe to the Service, and most of them have opted for the
shared antenna GPS service. Were the Exchange to terminate the
dedicated GPS antenna service as scheduled on April 1, 2026, those
dedicated GPS colocation customers who have elected to migrate to the
new robust shared GPS service would have a reduced window of time for
testing the new shared GPS service before termination of their
dedicated GPS takes effect. Thus, the Exchange believes that extending
the designated termination date for the dedicated GPS service to April
30, 2026, as proposed, would allow for a more coordinated and orderly
transition for clients who have elected to migrate from one GPS service
to the other. Continuing with the service until the proposed extended
termination date of April 30, 2026, however, is voluntary, and
customers are free to terminate their dedicated GPS antenna service at
any time before the proposed extension date.
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 imposes
any burden on the ability of customers or other exchanges to compete.
The Exchange operates in a highly competitive market in which exchanges
and other vendors offer co-location services as a means to facilitate
the trading and other market activities of those market participants
who believe that co-location enhances the efficiency of their
operations. Extending the designated time for terminating the dedicated
GPS antenna services and for removal of all dedicated GPS antennas, as
proposed, will not cause any burden on inter-market competition.
Additionally, there is no burden to intra-market competition because
the direct GPS antenna service is ultimately being terminated for all
customers. The Exchange is merely proposing to extend the designated
time for the termination of the dedicated GPS service and removal of
all dedicated GPS antennas, which would provide all customers with the
same timeline for terminating or converting to the shared GPS antenna
service on a non-discriminatory basis. Continuing with the service
until the proposed extended termination date of April 30, 2026,
however, is voluntary, and customers are free to terminate their
dedicated GPS antenna service at any time before the proposed extension
date. Use of any co-location service is completely voluntary, and each
market participant can determine whether to use co-location services
based on the requirements of its business operations.
The purpose of this proposal is to extend the designated date for
termination of the GPS dedicated antenna service (and removal of all
dedicated GPS antennas) from April 1, 2026, as previously
scheduled,\16\ to April 30, 2026, and to inform the Commission and
market participants of that change. The removal of the Exchange's
dedicated GPS antenna service under Rule General 8, Section 1(d) was
proposed in a previous rule filing that was submitted to the SEC,\17\
and the Exchange is not proposing in this filing any changes to that
filing other than to modify the designated date for the termination of
the dedicated GPS antenna service and associated fee and the removal of
all dedicated GPS antennas. The Exchange is extending that termination
date to April 30, 2026, in light of delays associated with the
completion of the new shared GPS antenna offering, and in order to
provide customers who have opted for the shared GPS antenna service
with sufficient time to test that service before termination of their
dedicated GPS antenna service takes effect on April 30, 2026, as
proposed. As discussed above, continuation of that service until the
proposed extended termination date of April 30, 2026, is voluntary, and
customers are free to terminate their dedicated GPS antenna service at
any time before the proposed extension date.
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\16\ See SR-ISE-2025-32, supra note 3.
\17\ See SR-ISE-2025-32, supra note 3.
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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.\18\
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\18\ 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#7002051c155d131f1d1d151e0403300315135e171f06"><span class="__cf_email__" data-cfemail="6113140d044c020e0c0c040f1512211204024f060e17">[email protected]</span></a>. Please include
file number SR-ISE-2026-11 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-ISE-2026-11. 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-ISE-2026-11 and should be submitted on
or before April 22, 2026.
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-06247 Filed 3-31-26; 8:45 am]
BILLING CODE 8011-01-P
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