Notice2026-09125
Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Ports Fees
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Published
May 8, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 89 (Friday, May 8, 2026)</title>
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[Federal Register Volume 91, Number 89 (Friday, May 8, 2026)]
[Notices]
[Pages 25410-25413]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09125]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105370; File No. SR-NASDAQ-2026-041]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Ports Fees
May 5, 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 April 28, 2026, The Nasdaq Stock Market LLC (the ``Exchange'' or
``Nasdaq'') 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 Nasdaq Options Market LLC
(``NOM'') Pricing Schedule at Options 7, Section 3, Nasdaq Options
Market--Ports and Other Services, in connection with a technology
migration.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/nasdaqtx/rulefilings">https://listingcenter.nasdaq.com/rulebook/nasdaqtx/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
NOM is planning a technology migration commencing July 27, 2026.\3\
As part of this technology migration, NOM Participants will need to
acquire new ports to connect to the new technology platform to
accommodate the symbol migration plan.\4\ Specifically, Participants
will need to utilize both existing or ``legacy'' \5\ ports and ``new''
\6\ ports during the technology migration rollout.\7\ NOM will not
assess fees for any pre-production \8\ ports acquired in anticipation
of a technology migration to enhance participation in testing. However,
pre-production ports will become production ports \9\ once NOM begins
the technology migration in July 2026.
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\3\ See <a href="https://www.nasdaqtrader.com/MicroNews.aspx?id=OTU2026-2">https://www.nasdaqtrader.com/MicroNews.aspx?id=OTU2026-2</a>.
\4\ NOM plans to migrate to the new platform on a symbol-by-
symbol basis over two weeks. See id.
\5\ A ``legacy'' port refers to a port that was subscribed to by
a NOM Participant prior to the technology migration and connects to
the existing technology platform.
\6\ A ``new'' port refers to a port acquired for the NOM
technology migration and would connect to the new technology
platform.
\7\ For example, once the technology migration commences in July
2026, new ports will be utilized to enter order and quote for
symbols that have migrated to the new platform and existing ports
will be utilized to enter orders and quotes that have not yet
migrated to the new platform. Once the 2-week rollout is complete,
or a longer period as the Exchange may designate for the rollout,
the Exchange would sunset the ports, on a defined date, that are
connected to the current environment.
\8\ A pre-production port may be used for port connectivity
testing purposes only and is not connected to the Exchange's match
engine that is currently in production for the execution of
interest. A pre-production port may not be used to enter an order or
quote for execution or otherwise send a message through a pre-
production port that would be acted upon by the Exchange. Testing
means the dates designated by the Exchange for user acceptance
testing and final confidence tests.
\9\ Production ports are used to submit quotes and orders for
execution in the Exchange's match engine.
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At this time, NOM proposes certain pricing for ``duplicate'' \10\
ports during the technology migration. NOM will not assess the FIX
Port,\11\ SQF Port,\12\ SQF Purge Port,\13\ QUO Port,\14\ CTI Port,\15\
[[Page 25411]]
ITTO Port \16\ and BONO Port \17\ fees in Options 7, Section 3 for any
new FIX Ports, SQF Ports, SQF Purge Ports, OTTO Ports (formerly QUO
Ports),\18\ CTI Ports, Depth of Market Feed (formerly ITTO Ports) \19\
and Top of Market Feed Ports (formerly BONO Ports),\20\ as of July 1,
2026, acquired as part of the migration from July 1, 2026 through
August 31, 2026 (``Transition Period''). NOM will continue to assess
the FIX Port, SQF Port, SQF Purge Port, QUO Port, CTI Port ITTO Port
and BONO Port fees for legacy FIX Ports, SQF Ports, SQF Purge Ports,
QUO Ports, CTI Ports, ITTO Ports and BONO Ports in Options 7, Section 3
during the Transition Period including new FIX Ports, SQF Ports, SQF
Purge Ports, OTTO Ports (formerly QUO Ports), CTI Ports, Depth of
Market Feed (formerly ITTO Ports) and Top of Market Feed Ports
(formerly BONO Ports) that are not duplicative of existing legacy
ports.
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\10\ The term duplicate means the type and quantity of their
legacy ports. For example, a NOM Participant with 3 legacy SQF
Ports, 1 legacy SQF Purge Port, 1 legacy FIX Port, and 1 legacy CTI
Port on July 1, 2026 could request the equivalent quantity and type
of new ports (3 SQF Ports, 1 SQF Purge Port, 1 FIX Port, and 1 CTI
Port) for the new environment at no additional cost.
\11\ ``Financial Information eXchange'' or ``FIX'' is an
interface that allows Participants and their Sponsored Customers to
connect, send, and receive messages related to orders to and from
the Exchange. Features include the following: (1) execution
messages; (2) order messages; and (3) risk protection triggers and
cancel notifications. See Options 3, Section 7(a)(i)(A).
\12\ ``Specialized Quote Feed'' or ``SQF'' is an interface that
allows Market Makers to connect, send, and receive messages related
to quotes and Immediate-or-Cancel Orders into and from the Exchange.
Features include the following: (1) options symbol directory
messages (e.g., underlying instruments); (2) system event messages
(e.g., start of trading hours messages and start of opening); (3)
trading action messages (e.g., halts and resumes); (4) execution
messages; (5) quote messages; (6) Immediate-or-Cancel Order
messages; (7) risk protection triggers and purge notifications; and
(8) opening imbalance messages. The SQF Purge Interface only
receives and notifies of purge requests from the Market Maker.
Market Makers may only enter interest into SQF in their assigned
options series. Immediate-or-Cancel Orders entered into SQF are not
subject to the Order Price Protection, Market Order Spread
Protection, or Size Limitation in Options 3, Section 15(a)(1) and
(a)(2), and (b)(2), respectively. See Options 3, Section 7(a)(i)(B).
\13\ An SQF Purge Interface only receives and notifies of purge
requests from the Market Maker.
\14\ ``Quote Using Orders'' or ``QUO'' is an interface that
allows Market Makers to connect, send, and receive messages related
to single-sided orders to and from the Exchange. Order Features
include the following: (1) options symbol directory messages (e.g.,
underlying); (2) system event messages (e.g., start of trading hours
messages and start of opening); (3) trading action messages (e.g.,
halts and resumes); (4) execution messages; (5) order messages; and
(6) risk protection triggers and cancel notifications. Orders
submitted by Market Makers over this interface are treated as
quotes. Market Makers may only enter interest into QUO in their
assigned options series. Orders entered into QUO are not subject to
the Order Price Protection or Size Limitation in Options 3, Section
15(a)(1) and (b)(2), respectively. See Options 3, Section
7(a)(i)(D).
\15\ Clearing Trade Interface (``CTI'') is a real-time clearing
trade update message that is sent to a Participant after an
execution has occurred and contains trade details specific to that
Participant. The information includes, among other things, the
following: (i) The Clearing Member Trade Agreement or ``CMTA'' or
The Options Clearing Corporation or ``OCC'' number; (ii) Exchange
badge or house number; (iii) the Exchange internal firm identifier;
(iv) an indicator which will distinguish electronic and non-
electronically delivered orders; (v) liquidity indicators and
transaction type for billing purposes; and (vi) capacity. See
Options 3, Section 23(b)(1).
\16\ Nasdaq ITCH to Trade Options (ITTO) is a data feed that
provides full order and quote depth information for individual
orders and quotes on the NOM book and last sale information for
trades executed on NOM. The data provided for each options series
includes the symbols (series and underlying security), put or call
indicator, expiration date, the strike price of the series, and
whether the option series is available for trading on NOM and
identifies if the series is available for closing transactions only.
The feed also provides order imbalances on opening/reopening (size
of matched contracts and size of the imbalance). See Options 3,
Section 23(a)(1).
\17\ Best of Nasdaq Options (BONO) is a data feed that provides
the NOM Best Bid and Offer and last sale information for trades
executed on NOM. The data provided for each options series includes
the symbols (series and underlying security), put or call indicator,
expiration date, the strike price of the series, and whether the
option series is available for trading on NOM and identifies if the
series is available for closing transactions only. See Options 3,
Section 23(a)(2).
\18\ QUO Ports were renamed OTTO Ports in SR-NASDAQ-2026-039
(not yet noticed).
\19\ ITTO Ports were renamed Depth of Market Feed in SR-NASDAQ-
2026-039 (not yet noticed).
\20\ BONO Ports were renamed Top of Market Feed Ports in SR-
NASDAQ-2026-039 (not yet noticed).
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NOM proposes to sunset \21\ legacy SQF Ports, SQF Purge Ports, QUO
Ports, CTI Ports, ITTO Ports and BONO Ports on September 1, 2026. The
Exchange believes that NOM Participants have enough time to return
their SQF Ports, SQF Purge Ports, QUO Ports, CTI Ports, ITTO Ports and
BONO Ports by September 1, 2026 since the migration will be complete on
August 10, 2026 and SQF Ports, SQF Purge Ports, QUO Ports, CTI Ports,
ITTO Ports and BONO Ports are not connected to a platform that is
active once the migration is complete.
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\21\ Sunsetting a port means removing access badge or mnemonic
access to a port. The term ``badge'' means an account number, which
may contain letters and/or numbers, assigned to NOM Market Makers. A
NOM Market Maker account may be associated with multiple badges. See
NOM Options 1, Section 1(a)(5). The term ``mnemonic'' means an
acronym comprised of letters and/or numbers assigned to
Participants. A Participant account may be associated with multiple
mnemonics. See NOM Options 1, Section 1(a)(25). NOM Market
Operations will remove badge/mnemonic access on all legacy ports on
the respective sunset dates.
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In contrast, NOM proposes to sunset legacy FIX Ports on November
30, 2026, because unlike the other legacy ports, legacy FIX Ports
provide data from the new platform. As of September 1, 2026, NOM will
assess FIX Port fees in Options 7, Section 3 to new and legacy FIX
Ports. NOM Participants may return legacy FIX Ports prior to September
1, 2026, to avoid any legacy FIX Port fees after the Transition Period.
The duplicate new ports that are being offered at no cost will
allow NOM Participants time to test ports to the new environment as
well as provide continuous connection to the Exchange's match engine
during the migration.\22\ During the Transition Period, NOM
Participants will be required to utilize their new ports on the new
platform for symbols that have migrated to the new platform, while
continuing to leverage legacy ports for symbols that have not yet
migrated to the new platform.\23\ During the Transition Period, NOM
Participants would be assessed only for legacy ports and would not be
assessed for the new ports which are duplicative of the legacy ports.
NOM Participants may acquire additional legacy ports during the
Transition Period and the charges for those additional ports would be
assessed accordingly.
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\22\ Participants would contact Market Operations to acquire
ports for the technology migration.
\23\ See supra notes 3 and 4.
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The technology migration does not require NOM Participants to
acquire additional ports or any new ports that are being offered,
rather the technology migration requires a new port to connect to the
new environment. NOM Participants may also elect to obtain fewer ports
as only one order entry port is required to submit orders and only one
quoting port is required to submit quotes. The technology migration is
1:1 and therefore would not require a NOM Participant to acquire an
additional quantity of new ports, nor would it reduce the total number
of ports needed to connect to the match engine. This proposal is not
intended to impose any additional fees on any NOM Participant. Rather,
this proposal is intended to permit a NOM Participant to utilize the
new environment with the same type and quantity of legacy ports, at no
additional cost, during the Transition Period.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\24\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\25\ 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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\24\ See 15 U.S.C. 78f(b).
\25\ See 15 U.S.C. 78f(b)(4) and (5).
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The Exchange's proposal to assess no fees for pre-production ports
acquired in anticipation of a technology migration is reasonable
because the Exchange is seeking to permit NOM Participants to acquire
pre-production ports at no cost to encourage participation in testing.
The Exchange's proposal is equitable and not unfairly discriminatory as
no NOM Participant will be assessed Port Fees for any pre-production
ports acquired in anticipation of a technology migration.
The proposed amendments to Options 7, Section 3 to permit NOM
Participants to acquire a second set of FIX Ports, SQF Ports, SQF Purge
Ports, OTTO Ports (formerly QUO Ports), CTI Ports, Depth of Market Feed
(formerly ITTO Ports) and Top of Market Feed Ports (formerly BONO
Ports), at no cost, as part of the technology migration are reasonable
because they will permit NOM Participants to migrate to the new
platform without a pricing impact. Specifically, the proposal is
intended to permit NOM Participants to migrate their legacy FIX Ports,
SQF Ports, SQF Purge Ports, QUO Ports, CTI Ports, ITTO Ports and BONO
Ports to new ports at no additional cost during the Transition Period.
This proposal will allow NOM Participants to test their ports and
maintain continuous connection to the Exchange's match engine during
the migration.
The proposed amendments to Options 7, Section 3 to permit NOM
Participants to acquire a second set of FIX Ports, SQF Ports, SQF Purge
Ports, OTTO Ports (formerly QUO Ports), CTI Ports, Depth of Market Feed
(formerly ITTO Ports) and Top of Market Feed Ports (formerly BONO
Ports), at no cost, as part of the technology migration are equitable
and not unfairly discriminatory because no NOM Participant would have a
pricing impact as a result of this proposal provided the NOM
Participant did not obtain additional new ports beyond the number of
duplicate legacy ports or additional legacy ports beyond the
[[Page 25412]]
quantity and type the Participant had on July 1, 2026. No NOM
Participant would be assessed a fee for the new second set of ports for
FIX Ports, SQF Ports, SQF Purge Ports, OTTO Ports (formerly QUO Ports),
CTI Ports, Depth of Market Feed (formerly ITTO Ports) and Top of Market
Feed Ports (formerly BONO Ports) provided they acquired a new second
set of ports commensurate with the type and quantity of ports they
subscribed to as of July 1, 2026. Any NOM Participant obtaining
additional legacy ports, beyond the current type and quantity of ports
they have as of July 1, 2026, would be assessed the fees noted in
Options 7, Section 3 as applicable.
The proposal to sunset legacy SQF Ports, SQF Purge Ports, QUO
Ports, CTI Ports, ITTO Ports and BONO Ports on September 1, 2026 for
all NOM Participants is reasonable, equitable and not unfairly
discriminatory because legacy SQF Ports, SQF Purge Ports, QUO Ports,
CTI Ports, ITTO Ports and BONO Ports are not connected to a platform
that is active once the migration is complete. The Exchange believes
that NOM Participants have enough time to return their SQF Ports, SQF
Purge Ports, QUO Ports, CTI Ports, ITTO Ports and BONO Ports by
September 1, 2026, since the migration will be complete on August 10,
2026. No NOM Participant will receive data from legacy SQF Ports, SQF
Purge Ports, QUO Ports, CTI Ports, ITTO Ports and BONO Ports once the
migration is complete. Further, no NOM Participant may log into legacy
SQF Ports, SQF Purge Ports, QUO Ports, CTI Ports, ITTO Ports and BONO
Ports after the sunset date.
The proposal to sunset legacy FIX Ports on November 30, 2026 and
assess FIX Ports fees in Options 7, Section 3 for new and legacy FIX
Ports commencing September 1, 2026 is reasonable, equitable and not
unfairly discriminatory because FIX Ports, unlike other legacy ports,
provide data from the new platform and are still functional after the
migration. Assessing FIX Port fees starting on September 1, 2026, will
encourage NOM Participants to return their legacy ports to avoid a fee,
thereby allowing NOM to efficiently and timely sunset the legacy
platform. The Exchange would assess the FIX Port fees in Options 7,
Section 3 for all legacy and new ports, in a uniform manner, to all NOM
Participants that continue to subscribe to legacy FIX Ports after the
Transition Period. Further, no NOM Participant may log into a legacy
FIX Port after the sunset 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.
Intermarket Competition
The Exchange believes its proposal remains competitive with other
options markets and will offer market participants another choice of
venue to transact options. 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. 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.
Intramarket Competition
The Exchange's proposal to not assess pre-production ports does not
impose an undue burden on intra-market competition as no NOM
Participant will be assessed Port Fees for any pre-production ports
acquired in anticipation of a technology migration.
The proposed amendments to Options 7, Section 3 to permit NOM
Participants to acquire a second set of FIX Ports, SQF Ports, SQF Purge
Ports, OTTO Ports (formerly QUO Ports), CTI Ports, Depth of Market Feed
(formerly ITTO Ports) and Top of Market Feed Ports (formerly BONO
Ports), at no cost, as part of the technology migration do not impose
an undue burden on competition because no NOM Participant would have a
pricing impact as a result of this proposal provided the NOM
Participant did not obtain additional new ports beyond the number of
duplicate legacy ports or additional legacy ports beyond the quantity
and type the Participant had on July 1, 2026. No NOM Participant would
be assessed a fee for the new second set of ports provided they
acquired a new second set of ports commensurate with the type and
quantity of ports they subscribed to as of July 1, 2026. Any NOM
Participant obtaining additional legacy ports, beyond the current type
and quantity of ports they have as of July 1, 2026, would be assessed
the fees noted in Options 7, Section 3 as applicable.
The proposal to sunset legacy SQF Ports, SQF Purge Ports, QUO
Ports, CTI Ports, ITTO Ports and BONO Ports on September 1, 2026 for
all NOM Participants does not impose an undue burden on competition
because no NOM Participant will receive data from legacy SQF Ports, SQF
Purge Ports, QUO Ports, CTI Ports, ITTO Ports and BONO Ports once the
migration is complete. Further, no NOM Participant may log into legacy
SQF Ports, SQF Purge Ports, QUO Ports, CTI Ports, ITTO Ports and BONO
Ports after the sunset date.
The proposal to sunset legacy FIX Ports on November 30, 2026 and
assess FIX Ports fees in Options 7, Section 3 for new and legacy FIX
Ports commencing September 1, 2026 does not impose an undue burden on
competition because the Exchange would assess the FIX Port fees in
Options 7, Section 3 for all legacy and new ports, in a uniform manner,
to all NOM Participants that continue to subscribe to legacy FIX Ports
after the Transition Period. Further, no NOM Participant may log into a
legacy FIX Port after the sunset date.
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.\26\
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\26\ 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:
[[Page 25413]]
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#7d0f081118501e1210101813090e3d0e181e531a120b"><span class="__cf_email__" data-cfemail="582a2d343d753b3735353d362c2b182b3d3b763f372e">[email protected]</span></a>. Please include
file number SR-NASDAQ-2026-041 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-2026-041. 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-2026-041 and should be submitted
on or before May 29, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
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\27\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-09125 Filed 5-7-26; 8:45 am]
BILLING CODE 8011-01-P
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