Notice2026-09601
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Description and Contents of GEMX Trade Outline Products
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Published
May 14, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 93 (Thursday, May 14, 2026)</title>
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[Federal Register Volume 91, Number 93 (Thursday, May 14, 2026)]
[Notices]
[Pages 27478-27481]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09601]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105441; File No. SR-GEMX-2026-18]
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Description and Contents of GEMX Trade Outline Products
May 11, 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 29, 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 and II 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 (a) amend Options 3, Section 23(c), which
sets forth the description of the Nasdaq GEMX Open/Close Trade Profile,
or ``Trade Outline,'' in the GEMX rulebook to (i) rename the product
``GEMX Trade Outline,'' (ii) include Market Makers as an origin type,
and (iii) restate the categories of information provided in the GEMX
Trade Outline End of Day (``End of Day'') and (b) revise Options 7,
Section 7 to conform to the new name for the GEMX Trade Outline
product.
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 purpose of the proposed rule change is to amend GEMX's market
data feed descriptions at Options 3, Section 23, to conform the
formatting of the information provided in GEMX's Trade Outline with
that of the comparable trade outline products in other Nasdaq options
markets and to amend the title of the product in Options 7, Section 7
to conform to the foregoing change. Changes to Options 3, Section 23
include: (i) re-naming the product ``GEMX Trade Outline,'' (ii) adding
Market Makers as a trade origin type, and (iii) augmenting the
categories of information provided in the GEMX Open/Close Trade Outline
End of Day. The sole changes to Options 7, Section 7 are to conform the
product name as ``GEMX Trade Outline.'' There is no fee change
contemplated in connection with this amendment.
Currently, Trade Outline provides aggregate quantity and volume
information for trades on the Exchange for all series \3\ during a
trading session. Information is provided in four categories: (i) total
exchange volume for Intra-Day information and total exchange and
industry volume for End of Day information for each reported series;
(ii) open interest for the series; (iii) aggregate quantity of trades
and aggregate trade volume effected to open a position,\4\
characterized by origin type; and (iv) aggregate quantity of trades and
aggregate trade volume effected to close a position,\5\ characterized
by origin type.\6\ Intra-Day information is updated at 10-minute
intervals over the course of the trading day. End of Day information is
available the next business day.
[[Page 27479]]
Historical information is available upon request.
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\3\ Every options series trades as a distinct symbol; the terms
``series'' and ``symbol'' are therefore synonyms.
\4\ This includes the aggregate number of ``opening purchase
transactions,'' defined as an Exchange Transaction that will create
or increase a long position in an options contract, see Options 1,
Section 1(a)(27), and the aggregate number of ``opening writing
transactions,'' defined as an Exchange Transaction that will create
or increase a short position in an options contract. See Options 1,
Section 1(a)(28).
\5\ This includes the aggregate number of ``closing purchase
transactions'' in the affected series, defined as an Exchange
Transaction that will reduce or eliminate a short position in an
options contract, see Options 1, Section 1(a)(9), and the aggregate
number of ``closing writing transactions,'' defined as an Exchange
Transaction that will reduce or eliminate a long position in an
options contract. See Options 1, Section 1(a)(10).
\6\ Options 3, Section 23(c)(1).
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Market Maker Origin Type
Currently, the origin types reportable in Trade Outline are
Priority Customer,\7\ Broker-Dealer,\8\ Firm Proprietary,\9\ and
Professional Customer.\10\ GEMX proposes to add Market Maker \11\ as a
reportable origin type, in line with the language in Options 3, Section
23(c) of the Nasdaq Stock Market LLC (``Nasdaq''), Nasdaq MRX, LLC
(``MRX''), Nasdaq PHLX, LLC (``PHLX''), and Nasdaq Texas, LLC (``Nasdaq
Texas,'' and, collectively with Nasdaq, MRX, PHLX, and GEMX, ``Nasdaq
Markets'').\12\ This addition will enhance the current Trade Outline
product by providing additional insights into market activity by
participants and harmonizing GEMX Trade Outline to MRX's similar trade
outline product. Currently, transactions conducted by a Market Maker
are not reported in Trade Outline, and the trades they engage in are
only captured from the side of the counterparty.\13\ Adding Market
Makers as a reportable category will ensure that GEMX Trade Outline
presents a complete picture of market activity and will provide
customers with a more detailed view of market sentiment. Furthermore,
it will facilitate and improve the ingestion of information by users
who subscribe to multiple trade outline products, because the same
categories of trade source will be available across the market of
available products.
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\7\ The term ``Priority Customer'' means a person or entity that
(i) is not a broker or dealer in securities, and (ii) does not place
more than 390 orders in listed options per day on average during a
calendar month for its own beneficial account(s). See Options 1,
Section 1(a)(36).
\8\ A ``Broker-Dealer'' order is an order submitted by a member
for a broker-dealer account that is not its own proprietary account.
See Options 7 Pricing Schedule, Section 1(c).
\9\ A ``Firm Proprietary'' order is an order submitted by a
member for its own proprietary account. See Options 7 Pricing
Schedule, Section 1(c).
\10\ A ``Professional Customer'' is a person or entity that is
not a broker/dealer and is not a Priority Customer. See Options 7
Pricing Schedule, Section 1(c).
\11\ ``Market Makers'' refers to ``Competitive Market Makers''
and ``Primary Market Makers'' collectively. See Options 1, Section
1(a)(21). The term ``Competitive Market Maker'' means a member that
is approved to exercise trading privileges associated with CMM
Rights. See Options 1, Section 1(a)(12). The term ``Primary Market
Maker'' means a member that is approved to exercise trading
privileges associated with PMM Rights. See Options 1 Sec. 1(a)(35).
This definition is aligned to the definition of ``market maker'' in
the Act as ``any specialist permitted to act as a dealer, any dealer
acting in the capacity of block positioner, and any dealer who, with
respect to a security, holds himself out (by entering quotations in
an inter-dealer communications system or otherwise) as being willing
to buy and sell such security for his own account on a regular or
continuous basis.'' 15 U.S.C. 78(c)(a)(38).
\12\ See also Nasdaq ISE, LLC's recent filing to add ``Market
Makers'' in its trade outline product, which is substantially
similar to this one. Securities Exchange Act Release No. 105288
(April 22, 2026), 91 FR 22555 (April 27, 2026) (SR-ISE-2026-17). See
also Cboe DataShop, Cboe Open-Close Volume Summary, available at
<a href="https://datashop.cboe.com/cboe-options-open-close-volume-summary">https://datashop.cboe.com/cboe-options-open-close-volume-summary</a>;
and NYSE, NYSE Options Open-Close Volume Summary, available at
<a href="https://www.nyse.com/data-products/catalog/open-close-volume-summary">https://www.nyse.com/data-products/catalog/open-close-volume-summary</a>, for examples of other exchanges that also report ``market
maker'' as an origin type in their trade outline product.
\13\ As the information reported in Trade Outline is done so on
an aggregated basis, the absence of this category of data can lead
to an imbalance between aggregated purchases and sales of a series,
and adding it to Trade Outline will provide the complete picture of
market activity. Furthermore, any customers who prefer the current
presentation will be able to disregard the information provided for
Market Makers and exclude it from any volume calculations they
conduct.
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This proposed amendment will provide the same types of data to
purchasers of GEMX Trade Outline as purchasers of MRX's, Nasdaq
Texas's, and other SROs' trade outline products currently receive. The
total amount of information disseminated will increase because of the
addition of Market Maker data, providing customers with a complete
picture of market sentiment and enhanced insights into market volume
and activity.
End of Day Information
Currently, the End of Day product includes ``opening buy, closing
buy, opening sell and closing sell information, which shall include
option first trade price, underlying close, option close, and
moneyness,'' in addition to the information provided as part of the
intra-day product. This proposal amends the text to read ``opening buy,
closing buy, opening sell and closing sell information, which shall
include option first trade price, option high trade price, option low
trade price, and option last trade price'' (emphasis added), instead.
This is designed to align End of Day with the MRX end of day trade
outline product, and the wording is thus consistent between the
two.\14\ However, just as MRX also provides the underlying close and
moneyness information as part of the additional informational fields
for its end of day information,\15\ GEMX will also continue to include
these fields in End of Day, despite the text being updated in Options
3, Section 23.
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\14\ See Securities Exchange Act Release No. 100789 (August 21,
2024), 89 FR 68680 (August 27, 2024) (SR-MRX-2024-31).
\15\ See Nasdaq Data Link, Nasdaq MRX Options--Trade Outline
(MOTO) EOD, available at <a href="https://data.nasdaq.com/databases/MOTOD">https://data.nasdaq.com/databases/MOTOD</a>;
Securities Exchange Act Release No. 100789 (August 21, 2024), 89 FR
68680 (August 27, 2024) (SR-MRX-2024-31).
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The substitution of ``underlying close, option close, and
moneyness'' with ``option high trade price, option low trade price, and
option last trade price'' ensures that consumers of equivalent products
across Nasdaq Markets receive data of the same type for each series on
the different exchanges' end of day trade outline products and that the
rule filings across Nasdaq Markets are consistent.\16\ Currently, End
of Day provides total industry volume, moneyness, open interest,
underlying close, and option close, while MRX's (and Nasdaq Texas's)
trade outline end of day product includes option first trade price,
option high trade price, option low trade price, and options last trade
price, in addition to total industry volume, moneyness, open interest,
and underlying close.\17\ MRX does not provide ``option close,'' but
instead reports ``options last trade price,'' an approach that the
Exchange intends to take as well. The information reported in each is
identical--the price of the last trade made prior to the end of the
market day in the series--but the Exchange believes that the phrase
``options last trade price'' is a more useful and accurate descriptor
of the information than option close, and the simplification of using a
unified term across products will benefit investors seeking to
understand any differences between the two. This proposal would
increase the specificity of data available to End of Day purchasers,
aligning the granularity to that already available from MRX, Nasdaq
Texas, and others.
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\16\ See supra n. 12.
\17\ Nasdaq Data, Nasdaq Options Trade Outline, available at
<a href="https://www.nasdaq.com/solutions/data/options/trade-outline">https://www.nasdaq.com/solutions/data/options/trade-outline</a>.
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Trade Outline Name
The shift in name for Trade Outline from ``GEMX Open/Close Trade
Profile'' to ``GEMX Trade Outline'' reflects an alignment between the
products being provided across Nasdaq Markets. While a name change is a
non-substantive update, this new name better reflects the products
being provided, as they contain far more information about options
trades than simply information about a series open and close, as the
old name implies. Furthermore, trade outline is the name given to the
comparable product across other Nasdaq Markets. This standardization of
nomenclature across the different platforms will assist customers in
understanding the comparability of the information provided by the
different
[[Page 27480]]
markets and better characterizes the data provided.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\18\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\19\ 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, by providing the same categories of information to purchasers
of Trade Outline data from different markets.
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\18\ 15 U.S.C. 78f(b).
\19\ 15 U.S.C. 78f(b)(5).
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Adding ``Market Makers'' as a category of trade origin in Options
3, Section 23 is consistent with the Act as the new term will provide a
more detailed perspective of the market by adding the trade volume
produced by Market Makers, which provides insight to market sentiment
by allowing the Exchange to report the origin with specificity, which
will increase the usefulness of U.S. options market data to investors.
Currently, trades by Market Makers do not get reported as part of Trade
Outline products, and customers will benefit from the greater insight
into market sentiment by all participants. The proposal promotes
transparency through more detailed dissemination of aggregate quantity
and volume information for trades on the Exchange for all series during
a trading session and would benefit investors by promoting better
informed trading throughout the trading day and at the end of the day.
The proposed amendment is also well-understood in the market and will
align the GEMX Trade Outline product to that of other SROs who also
include ``Market Maker'' as a reportable category, thus providing the
same information to purchasers of the various comparable products.\20\
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\20\ See, e.g., Cboe DataShop, Cboe Open-Close Volume Summary,
available at <a href="https://datashop.cboe.com/cboe-options-open-close-volume-summary">https://datashop.cboe.com/cboe-options-open-close-volume-summary</a>; NYSE, NYSE Options Open-Close Volume Summary,
available at <a href="https://www.nyse.com/data-products/catalog/open-close-volume-summary">https://www.nyse.com/data-products/catalog/open-close-volume-summary</a>; MRX Options 3, Section 23(c).
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Aligning the text of the information provided with the End of Day
file, in Options 3, Section 23, with the text of MRX's comparable rule
is consistent with the Act as the new terms provide a more detailed
description of the information that will be more useful to investors
and will conform to the fields of information that are already
available from other Nasdaq exchanges. This proposal provides
transparency on par with MRX (and other Nasdaq Markets) by providing
additional information in the same category that MRX already provides,
which will also increase the usefulness of U.S. option market data to
investors. These categories are also understood in the market and will
align the GEMX Trade Outline product to that of MRX's thus providing
the same information to purchasers of the various trade outline
products.
Finally, the revised name of GEMX Trade Outline provides a better
indicator to customers, including investors and the market as a whole,
of what the product contains, and is directly comparable to products
from other Nasdaq Markets that use the same nomenclature. The
standardization of product names will make it easier for customers,
investors, and the whole market to understand the similarity of
products and reduce the cognitive load of trying to discern the (non-
existent) difference in information provided between a product called
``trade outline'' and one called ``open/close trade profile.'' This is
a purely ministerial change, yet will provide greater clarity to market
participants.
The Exchange believes that the proposed amendment would promote
better informed trading by more precisely disseminating information
regarding investor sentiment. Furthermore, the proposal will foster
investor protection by providing more detailed information to
investors. Adding comparable information from another exchange to the
current mix of trade outline products that report Market Makers as a
category of trade origins, adding additional information to the End of
Day, and re-naming the product, all in line with other trade outline
products, will help investors become better informed about overall
market sentiment and therefore better able to protect their interests.
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. The addition of Market Makers
as a category for trade origin enables the Exchange to provide
additional information to customers \21\ and to be more precise in its
classification of data. Furthermore, revising the categories of data
provided in the End of Day product simply aligns the information GEMX
provides to what MRX already delivers to the market,\22\ and will not
burden competition. The changes to Options 7, Section 7 are mere
ministerial amendments to reflect the change to the name of the Trade
Outline products and will not burden--or even impact--competition.
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\21\ While it is additional information for Trade Outline, it
will be the same type of information currently reported in
comparable products by other SROs.
\22\ This change will not lead to GEMX providing any less
information than is currently in End of Day.
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Nothing in this proposal burdens inter-market competition (the
competition among self-regulatory organizations) because the amendment
does not impose any burden on the ability of other exchanges to
compete. In fact, it will align the information available from the GEMX
Trade Outline product more closely with the information available from
the other exchanges that currently offer competing products and ensure
consistency within the GEMX rulebook.
Nothing in the proposal burdens intra-market competition (the
competition among consumers of exchange data) because GEMX Trade
Outline will continue to be available to any market participant,
including both members and non-members, as it currently is, on a non-
discriminatory basis.
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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to Section 19(b)(3)(A)(iii) of the Act \23\ and subparagraph
(f)(6) of Rule 19b-4 thereunder.\24\
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\23\ 15 U.S.C. 78s(b)(3)(A)(iii).
\24\ 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, along
with a brief description and text of 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.
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A proposed rule change filed under Rule 19b-4(f)(6) \25\ normally
does not
[[Page 27481]]
become operative prior to 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\26\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requests
that the Commission waive the 30-day operative delay so that the
proposed rule change may become operative immediately upon filing. The
Exchange states that the proposed changes will align the product
offering with industry standards. The Exchange also states that the
proposed rule text is designed to replicate that of another
exchange.\27\ For these reasons, and because the proposal raises no new
or novel legal or regulatory issues, the Commission finds that waiver
of the 30-day operative delay is consistent with the protection of
investors and the public interest. Accordingly, the Commission waives
the 30-day operative delay and designates the proposed rule change to
be operative upon filing.\28\
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\25\ 17 CFR 240.19b-4(f)(6).
\26\ 17 CFR 240.19b-4(f)(6)(iii).
\27\ See supra note 12.
\28\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 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#1b696e777e36787476767e756f685b687e78357c746d"><span class="__cf_email__" data-cfemail="3d4f485158105e5250505853494e7d4e585e135a524b">[email protected]</span></a>. Please include
file number SR-GEMX-2026-18 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-2026-18. 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-2026-18 and should be submitted on
or before June 4, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
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\29\ 17 CFR 200.30-3(a)(12) and (59).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-09601 Filed 5-13-26; 8:45 am]
BILLING CODE 8011-01-P
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