Notice2026-07781
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Various Auction Mechanisms
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 22, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 77 (Wednesday, April 22, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 77 (Wednesday, April 22, 2026)]
[Notices]
[Pages 21537-21541]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-07781]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105265; File No. SR-GEMX-2026-15]
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Various
Auction Mechanisms
April 17, 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 Apri1 13, 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to permit orders for the accounts of Market
Makers assigned to the options class to be solicited for the initiating
order \3\ submitted for execution against an agency order into a
Facilitation Mechanism, the Solicited Order Mechanism (``SOM''), or a
Price Improvement Mechanism (``PIM'').
---------------------------------------------------------------------------
\3\ The ``initiating order'' is the order comprised of principal
interest or a solicited order(s) submitted to trade against the
order the submitting Electronic Access Member represents as agent
(the ``Agency Order'').
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/gemx/rulefilings">https://listingcenter.nasdaq.com/rulebook/gemx/rulefilings</a>,
and at the principal office of the Exchange.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Supplementary Material .01 and .03
to Options 3, Section 11 (Auction Mechanisms), Supplementary Material
.06 to Options 3, Section 13 (Price Improvement Mechanism for Crossing
Transactions) to permit orders by Members in a Facilitation Mechanism,
a SOM, and a PIM to trade against the Agency Orders \4\ for the
accounts of Market Makers assigned to the options class. Cboe Exchange,
Inc. (``Cboe'') recently received approval to amend its rules in an
identical manner.\5\ The Exchange also proposes an amendment to Options
5, Section 4 relating to the handling of Immediate-or-Cancel Orders.\6\
---------------------------------------------------------------------------
\4\ Agency Orders are orders entered by a Member that are
represented as agent.
\5\ See Securities Exchange Act Release No. 105049 (March 19,
2026), 91 FR 14057 (March 24, 2026) (SR-Cboe-2025-090).
\6\ Immediate-or-Cancel is an order entered with a TIF of
``IOC'' that is to be executed in whole or in part upon receipt. Any
portion not so executed is to be treated as cancelled. See
Supplementary Material .02(d) to Options 3, Section 7.
---------------------------------------------------------------------------
Background
PIM
A PIM Auction is an electronic auction intended to provide an
Agency Order with the opportunity to receive price improvement (over
the National Best Bid or Offer (``NBBO'')). There is no specific size
requirement for a PIM Auction. Upon submitting an Agency Order into a
PIM, the initiating Electronic Access Member must also submit a contra-
side paired order. The initiating order guarantees that the Agency
Order will receive an execution at no worse than the auction price.
[[Page 21538]]
Upon commencement of an auction, market participants may submit
responses to trade against the Agency Order.\7\ At the conclusion of a
PIM, the Agency Order will be executed in full at the best prices
available, taking into consideration orders and quotes in the Exchange
market and Improvement Orders.\8\ GEMX's PIM is very similar to Cboe's
Automated Price Improvement Mechanism or ``AIM.'' \9\
---------------------------------------------------------------------------
\7\ See Options 3, Section 13(c)(2). Responses in PIM are called
Improvement Orders.
\8\ The Agency Order will receive executions at multiple price
levels if there is insufficient size to execute the entire order at
the best price. See Options 3, Section 13(d).
\9\ An AIM Auction is an electronic auction intended to provide
an Agency Order with the opportunity to receive price improvement
(over the National Best Bid or Offer (``NBBO'')). Upon submitting an
Agency Order into an AIM Auction, the initiating Trading Permit
Holder (``Initiating TPH'') must also submit a contra-side second
order (``Initiating Order'') for the same size as the Agency Order.
The Initiating Order guarantees that the Agency Order will receive
an execution at no worse than the auction price. Upon commencement
of an auction, market participants may submit responses to trade
against the Agency Order. See Cboe Rule 5.37(c)(5). At the
conclusion of an AIM Auction, depending on the contra-side interest
(including auction responses) available, the Initiating Order may be
allocated a certain percentage (or more) of the Agency Order. See
Cboe Rule 5.37(e).
---------------------------------------------------------------------------
SOM
Options 3, Section 11(d) contains the requirements applicable to
the execution of Agency Orders using SOM. A SOM Auction is an
electronic auction intended to provide a larger-sized (orders of 500 or
more contracts) Agency Order with the opportunity to receive price
improvement over the NBBO. Options 3, Section 13 contains the
requirements applicable to the execution of orders the Electronic
Access Member represents as agent using PIM. A PIM Auction is an
electronic auction intended to provide an Agency Order with the
opportunity to receive price improvement (over the National Best Bid or
Offer (``NBBO'')). Upon submitting an Agency Order into a SOM, the
initiating Electronic Access Member must also submit a contra-side
paired order. The initiating order guarantees that the Agency Order
will receive an execution at no worse than the auction price. Upon
commencement of an auction, market participants may submit responses to
trade against the Agency Order.\10\ At the conclusion of a SOM,
execution will depend on whether there is sufficient size to execute
the entire Agency Order at an improved price (or prices) \11\ as the
SOM is designated as all-or-none.\12\ GEMX's SOM is very similar to
Cboe's Solicited Auction Mechanism or ``SAM.'' \13\
---------------------------------------------------------------------------
\10\ See Options 3, Section 11(b)(3) and (d)(2) and Section
13(c)(2). Responses in PIM are called Improvement Orders.
\11\ If at the time of execution there is insufficient size to
execute the entire Agency Order at an improved price (or prices),
the Agency Order will be executed against the solicited order at the
proposed execution price so long as, at the time of execution: (i)
the execution price is equal to or better than the best bid or offer
on the Exchange, and (ii) there are no Priority Customer Orders or
Priority Customer Responses on the Exchange that are priced equal to
the proposed execution price. If there are Priority Customer Orders
or Priority Customer Responses on the Exchange on the opposite side
of the Agency Order at the proposed execution price and there is
sufficient size to execute the entire size of the Agency Order, the
Agency Order will be executed against the bid or offer, and the
solicited order will be cancelled. See Options 3, Section
11(d)(3)(A). If at the time of execution there is sufficient size to
execute the entire Agency Order at an improved price (or prices),
the Agency Order will be executed at the improved price(s), provided
the execution price is equal to or better than the best bid or offer
on the Exchange, and the solicited order will be cancelled. See
Options 3, Section 11(d)(3)(B). In each case the aggregate size of
all orders, quotes and Responses at each price will be used to
determine whether the entire agency order can be executed at an
improved price (or prices).
\12\ See Options 3, Section 11(d).
\13\ A SAM Auction is an electronic auction intended to provide
a larger-sized Agency Order with the opportunity to receive price
improvement over the NBBO. Upon submitting an Agency Order into a
SAM Auction, the initiating Trading Permit Holder (``Initiating
TPH'') must also submit a contra-side second order (``Initiating
Order'') for the same size as the Agency Order. The Initiating Order
guarantees that the Agency Order will receive an execution at no
worse than the auction price. Upon commencement of an auction,
market participants may submit responses to trade against the Agency
Order. See Cboe Rule 5.39(c)(5). At the conclusion of a SAM Auction,
depending on the contra-side interest (including auction responses)
available, the Initiating Order may be allocated the entire Agency
Order or none of the Agency Order. See Cboe Rule 5.39(e).
---------------------------------------------------------------------------
Facilitation Mechanism
Options 3, Section 11(b) describes a Facilitation Mechanism which
is an electronic auction intended to provide a larger-sized Agency
Order with the opportunity to receive price improvement over the NBBO.
Block-sized orders (fifty (50) contracts or more pursuant to Options 3,
Section 11(a)) may be entered into a Facilitation Mechanism by a Member
to facilitate a customer order it represents as agent. Members must be
willing to execute the entire size of orders entered into the
Facilitation Mechanism pursuant to Options 3, Section 11(b). Under this
mechanism, a Member submits a Facilitation Order along with a matching
contra-side order, and the System initiates an auction during which
other participants may submit competing responses. At the conclusion of
the auction, the facilitating Member is entitled to a guaranteed
participation right at the final execution price, provided the Member's
price matches or improves upon the best competing response. Pursuant to
Options 3, Section 11(b)(4)(B), the facilitating Member may be
allocated up to forty percent (40%) (or such lower percentage requested
by the Member) of the original size of the facilitation order, but only
after better-priced Responses, orders and quotes, as well as Primary
Customer Orders and Primary Customer Responses at the facilitation
price, are executed in full at such price point.
The Exchange notes that Cboe does not have a Facilitation
Mechanism. The GEMX Facilitation Mechanism is similar to Cboe's SAM.
The key differences are:
[ssquf] the GEMX Facilitation Mechanism requires a minimum of 50
contracts pursuant to Options 3, Section 11(b) while a Cboe SAM
requires a minimum of 500 contracts pursuant to Cboe Rule 5.39(a)(3);
[ssquf] Cboe's SAM has an all-or-none allocation at Cboe Rule
5.39(e) while the GEMX Facilitation Mechanism must be willing to
execute the entire size at Options 3, Section 11(b); and
[ssquf] Cboe Rule 5.39 requires that a Cboe Trading Permit Holder
submit for execution an order it represents as agent (``Agency Order'')
against a solicited order(s) (which cannot have a Capacity F for the
same EFID as the Agency Order into a SAM pursuant to Cboe Rule 5.39
wherein the Agency Order and Solicited Order cannot both be for the
accounts of Priority Customers whereas the GEMX Facilitation Mechanism
does not have similar limitations.
These aforementioned differences do not result in a different
analysis as to the impact of permitting orders by Members in a
Facilitation Mechanism to trade against the Agency Orders for the
accounts of Market Makers assigned to the options class. The Exchange's
analysis below applies to the Facilitation Mechanism as it applies to a
SOM or PIM.
Proposal
Currently, Supplementary Material .01 and .03 to Options 3, Section
11, Supplementary Material .06 to Options 3, Section 13 prohibit orders
by Members in a Facilitation Auction, SOM, or PIM (collectively
``Paired Auctions''), respectively, to trade against the Agency Orders
for the accounts of Market Makers assigned to the options class.
While market participants other than assigned Market Makers may
contribute liquidity to these Paired Auctions as either a contra-side
order or responses, assigned Market Makers, who are the primary source
of liquidity on the Exchange in their assigned options, are limited in
the manner in which they
[[Page 21539]]
may provide liquidity to these Paired Auctions. Given that contra-side
orders that comprise initiating orders may be allocated a percentage of
the Agency Order at the conclusion of the auctions, the limited ability
of assigned Market Makers to participate in a Paired Auction may reduce
the execution opportunities for these liquidity providers, which
execution opportunities are available to other market participants who
may be solicited or submit responses.
The Exchange believes that eliminating the prohibition against
assigned Market Makers acting as contra in Paired Auctions would
enhance price improvement opportunities in the Paired Auctions. This is
particularly for retail and smaller Priority Customer orders in a PIM.
Allowing assigned Market Makers registered with the Exchange to be
facilitated or solicited as contras may result in exposure of more
small Priority Customer orders to potential price improvement via
auction processes in a PIM. The Exchange further notes that Options 3,
Section 22(d) (Limitations on Order Entry) provides that, prior to or
after submitting an order to GEMX, a Member cannot inform another
Member or any other third party of any of the terms of the order for
purposes of violating this Rule. This protection will remain in place
under the proposed rule change to address any potential information
leakage concerns in the Paired Auctions as Options 3, Section 22
applies to the Paired Auctions.
The Exchange believes that the restriction has become operationally
outdated in current market structure. It is common practice that Agency
Orders already involve the same Market Maker firm acting as both the
contra-side (in an away Market Maker capacity) and auction respondent
(as an assigned Market Maker registered on the Exchange). Eliminating
this restriction would reduce an arbitrary and unnecessary burden and
allow Market Makers to structure more efficient auction processes,
which may ultimately promote greater competition among Market Makers
and provide market participants with enhanced opportunities for price
improvement.
The Exchange is proposing to amend Supplementary Material .01 and
.03 to Options 3, Section 11, Supplementary Material .06 to Options 3,
Section 13 to permit orders for the accounts of Market Makers in an
assigned options class to be solicited for the initiating order
submitted for execution against an Agency Order in all options. The
Exchange believes providing assigned Market Makers with an additional
way to participate in Paired Auctions will expand available liquidity
for these Paired Auctions, which may increase execution and price
improvement opportunities, particularly for Priority Customer orders in
a PIM. The Exchange notes that no similar restriction applies to
crossing transactions in open outcry trading.\14\ Brokers seeking
liquidity to execute against customer orders on the trading floor
regularly solicit assigned Floor Market Makers in the applicable class
for this liquidity, as they are generally the primary source of
liquidity in a class. Therefore, the Exchange believes the proposed
rule change will further align open outcry and Paired Auctions and the
execution and price improvement opportunities available in both
auctions by permitting the same participants to be solicited as contras
in Paired Auctions across all options at all times.
---------------------------------------------------------------------------
\14\ See e.g., Nasdaq Phlx LLC (``Phlx'') Options 8 Rules.
---------------------------------------------------------------------------
In addition to Cboe, the Exchange notes the electronic price
improvement auction of another options exchange currently permits
orders for the accounts of appointed market-makers to be solicited as
the contra orders for that auction.\15\
---------------------------------------------------------------------------
\15\ See NYSE American, Inc. (``American'') Rule 971.1NY and
NYSE Pillar Options FIX Gateway Protocol Specification, Section 5.2,
New Cross Order. See also <a href="https://www.nyse.com/markets/american-options/cube-customer-best-execution">https://www.nyse.com/markets/american-options/cube-customer-best-execution</a>.
---------------------------------------------------------------------------
Options 5, Section 4
The Exchange proposes to amend subparagraph (a) at Options 5,
Section 4, Order Routing, which currently states, ``Immediate-or-Cancel
(``IOC'') Orders will be cancelled immediately if not executed, and
will not be routed.'' The Exchange proposes to instead state that,
``Immediate-or-Cancel (``IOC'') Orders will be rejected and will not be
routed.'' While the current sentence reflects the operation of IOC
Orders as provided in Supplementary Material .02(d) to Options 3,
Section 7, within the context of routing, the sentence may be
confusing. Options 5, Section 4 explains the manner in which various
order types are handled differently for purposes of routing. An IOC
Order will not rest on the order book by its definition and cannot
route. The Exchange proposes to amend the language to be clear that IOC
Orders are not subject to routing and therefore would be rejected. This
proposed language is consistent with Supplementary Material .02(d) to
Options 3, Section 7 and makes clear the treatment of IOC Orders for
purposes of Options 5, Section 4.
Implementation
The Exchange proposes to implement these proposed changes on or
before Q3 2026. The Exchange will issue an Options Trader Alert
indicating the date the changes will be implemented.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\16\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\17\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest.
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78f(b).
\17\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes the proposed rule change will promote just
and equitable principles of trade and remove impediments to and perfect
the mechanism of a free and open market and a national market system
because it will provide the primary liquidity providers on the Exchange
with an additional way to participate in Paired Auctions. Additionally,
by permitting brokers to solicit primary liquidity providers in a class
for Paired Auctions, the Exchange believes brokers will be able to more
efficiently locate liquidity to fill their customer orders,
particularly during times of volatility. As a result, the Exchange
believes the proposed rule change will likely expand available
liquidity for these Paired Auctions, which may create additional
execution and price improvement opportunities for market participants
at all times, which ultimately benefits investors.
The Exchange believes the proposed rule change is consistent with
the Act because it will further align open outcry and Paired Auctions
and the execution and price improvement opportunities available in both
auctions by permitting the same participants to be solicited as the
contra-side in both types of auctions across all options. Currently,
assigned Market Makers may be solicited with respect to crossing
transactions on trading floors but may not be solicited with respect to
Paired Auctions.\18\ The Exchange believes there is no reason to
restrict a Market Maker's ability to provide liquidity into Paired
Auctions when they are able to similarly provide that liquidity in open
outcry trading. As noted above, the electronic price improvement
auction of another options exchange currently permits orders for the
accounts of assigned market makers
[[Page 21540]]
to be solicited as the contra-side orders for that auction.\19\
---------------------------------------------------------------------------
\18\ Phlx's trading floor does not have a similar restriction.
See Phlx Options 8 Rules.
\19\ See supra notes 5 and 15.
---------------------------------------------------------------------------
In particular, the Exchange believes the proposed rule change will
promote competition in Paired Auctions, including competition to
initiate Paired Auctions, which will remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general, to protect investors. The Exchange believes the
availability of this liquidity to Agency Orders will positively affect
the experience for Agency Orders and overall quality of the auctions.
Furthermore, the Exchange believes increasing the number of market
participants available to be solicited may increase competition to
provide initiating orders, which may lead to a Paired Auction being
initiated at a better price. More market participants competing to
provide initiating orders may lead to solicited parties providing more
aggressive initial prices. The Exchange believes the ability of all
market participants, including assigned Market Makers that did not
submit an initiating order, to become the contra-side to a Paired
Auction will continue to provide competition for executions against
Agency Orders.
The Exchange believes any risk that assigned Market Makers may
misuse the nonpublic information of an upcoming Paired Auction is de
minimis. Supplementary Material .03 to Options 3, Section 22 provides
that the exposure requirement applicable to principal transactions in
Options 3, Section 22(b) \20\ applies to the entry of orders with
knowledge that there is a pre-existing unexecuted agency, proprietary,
or solicited order on the Exchange. Members may demonstrate that orders
were entered without knowledge by providing evidence that effective
information barriers between the persons, business units, and/or
systems entering the orders onto the Exchange were in existence at the
time the orders were entered. Such information barriers must be fully
documented and provided to the Exchange upon request. Further, the
Exchange notes that Supplementary Material .01 to Options 3, Section 13
prohibits a pattern or practice of submitting orders or quotes or the
purpose of disrupting or manipulating PIM Auctions, and Options 9,
Section 9 requires Members to establish, maintain, and enforce written
policies and procedures reasonably designed to prevent the misuse of
material, nonpublic information by Members and their associated
persons. Finally, Options 3, Section 22(d) (Limitations on Order Entry)
provides that, prior to or after submitting an order to GEMX, a Member
cannot inform another Member or any other third party of any of the
terms of the order for purposes of violating the Rule.
---------------------------------------------------------------------------
\20\ Electronic Access Members may not execute as principal
orders they represent as agent unless (i) agency orders are first
exposed on the Exchange for at least one (1) second, (ii) the
Electronic Access Member has been bidding or offering on the
Exchange for at least one (1) second prior to receiving an agency
order that is executable against such bid or offer, or (iii) the
Member utilizes the Facilitation Mechanism pursuant to Options 3,
Section 11(b) and (c); (iv) the Member utilizes the Price
Improvement Mechanism for Crossing Transactions pursuant to Options
3, Section 13; (v) the Member utilizes Qualified Contingent Cross
Orders pursuant to Options 3, Section 12(c) and (d); (vi) the Member
utilizes a Customer Cross Order pursuant to Options 3, Sections
12(a) or (b); or (vii) the Member utilizes a Complex Order Exposure
pursuant to Supplementary Material .01 to Options 3, Section 14.
Electronic Access Members may not execute as principal orders they
represent as agent within the Solicitation Mechanism pursuant to
Options 3, Section 11(d) and (e). See Options 3, Section 22(b).
---------------------------------------------------------------------------
The Exchange believes the proposed rule change is not designed to
permit unfair discrimination between customers, issuers, brokers, or
dealers because it will permit orders for accounts of assigned Market
Makers to be solicited in the same manner as orders for the accounts of
all other market participants. Currently, all market participants other
than assigned Market Makers may be solicited as the contra-side and
submit responses in Paired Auctions for all options. Given the
additional costs and obligations associated with being an assigned
Market Maker, the Exchange does not believe these Market Makers should
have fewer execution opportunities with respect to volume submitted for
execution through Paired Auctions and not for electronic execution
against interest in the book. The Exchange believes the proposed rule
change will provide all Market Makers on the Exchange with the same
ability to participate in Paired Auctions in all options at all times,
which may further increase execution and price improvement
opportunities for market participants.
Cboe does not have an auction equivalent to the Facilitation
Mechanism, however the Exchange's Facilitation Mechanism is similar to
Cboe's SAM. The key differences noted in the Purpose section do not
differentiate the Facilitation Mechanism for purposes of permitting
orders by Members in a Facilitation Mechanism to trade against the
Agency Orders for the accounts of Market Makers assigned to the options
class. The Exchange's aforementioned analysis applies to the
Facilitation Mechanism as it applies to a SOM, and PIM in the same
manner as it applies to the Paired Auctions.
Options 5, Section 4
The Exchange's proposal to amend Options 5, Section 4(a) is
consistent with the Act because it will bring greater clarity to the
current rule text by clearly explaining that IOC Orders will not route.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
The Exchange does not believe the proposed rule change will impose
any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because it
provides the same execution opportunities in Paired Auctions to
assigned Market Makers that are currently available to all other market
participants. Additionally, the proposed rule change will further align
open outcry and Paired Auctions and the execution and price improvement
opportunities available in both auctions by permitting the same
participants to be solicited as a contra-side in auctions across all
options.
The Exchange does not believe the proposed rule change will impose
any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because it
relates to orders submitted into Paired Auctions on the Exchange.
Additionally, the Exchange notes that, in addition to Cboe, the rules
of at least one other options exchange permits orders for the accounts
of assigned market makers to be solicited as contra-side orders for
that exchange's electronic price improvement auction.\21\ The Exchange
believes the proposed rule change may improve price competition within
Paired Auctions, because the primary liquidity providers will be able
to increase participation in Paired Auctions.
---------------------------------------------------------------------------
\21\ See supra note 15.
---------------------------------------------------------------------------
Options 5, Section 4
The Exchange's proposal to amend Options 5, Section 4(a) does not
impose an undue burden on competition, rather the proposal clarifies
the current rule text.
[[Page 21541]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \22\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\23\
---------------------------------------------------------------------------
\22\ 15 U.S.C. 78s(b)(3)(A)(iii).
\23\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#f684839a93db95999b9b93988285b6859395d8919980"><span class="__cf_email__" data-cfemail="e193948d84cc828e8c8c848f9592a1928482cf868e97">[email protected]</span></a>. Please include
file number SR-GEMX-2026-15 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-2026-15. 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-2026-15 and should be submitted on
or before May 13, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
---------------------------------------------------------------------------
\24\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Vanessa A. Countryman,
Secretary.
[FR Doc. 2026-07781 Filed 4-21-26; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on April 22, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.