Notice2026-11481
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule General 8 Regarding Intrafirm Cabinet Connectivity
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Published
June 9, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 110 (Tuesday, June 9, 2026)</title>
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[Federal Register Volume 91, Number 110 (Tuesday, June 9, 2026)]
[Notices]
[Pages 34861-34864]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11481]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105612; File No. SR-ISE-2026-27]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rule
General 8 Regarding Intrafirm Cabinet Connectivity
June 4, 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 May 26, 2026, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed with
the Securities and Exchange Commission (``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 Rule General 8, Section 1 to
expressly list non-contiguous intrafirm cabinet connectivity as a
subset of Fiber \3\ connectivity under Rule General 8, Section 1(b),
and amend the fees applicable to such service, as described below.
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\3\ See Rule General 8, Section 1(b).
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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 proposes to amend Rule General 8, Section 1 to
expressly list non-contiguous intrafirm cabinet connectivity as a
subset of Fiber \4\ connectivity under Rule General 8, Section 1(b),
and amend the fees applicable to such service, as described below.
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\4\ See Rule General 8, Section 1(b).
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Background--Intrafirm Cabinet Connectivity Service
The Exchange offers non-contiguous intrafirm cabinet connectivity
services consisting of cross connections linking a customer's cabinet
to another non-contiguous or non-adjacent \5\ cabinet, where all such
cabinets are licensed to the same customer. By contrast, cabling
between contiguous or adjacent cabinets licensed to the same customer,
where the connection does not traverse shared data center space, is
generally customer-directed and is not offered by the Exchange as a
standalone connectivity service.
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\5\ For purposes of this proposal, the Exchange distinguishes
between cabling that remains wholly within adjacent customer
cabinets and does not traverse shared data center space and cabling
that traverses shared data center space. The latter implicates
common pathways and Exchange-managed infrastructure and is therefore
treated as non-contiguous. The Exchange, however, exercises (and
will continue to exercise) supervisory oversight over the relevant
data center space and the conditions under which such cabling may be
installed, maintained, and accessed, consistent with its
responsibility for the operation and integrity of its facilities.
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With respect to non-contiguous intrafirm cabinet connectivity,
today customers can order such services as a standard Fiber connection
under Rule General 8, Section 1(b) for an installation fee of $550 and
no ongoing monthly fee. Alternatively, customers can choose a custom
installation for an
[[Page 34862]]
installation-specific price as provided in the Custom Installation
provision under Rule General 8, Section 1(d).
With respect to contiguous cabling between adjacent cabinets
licensed to the same customer, the cabling arrangement is generally
customer-directed and may be implemented by the customer or by third
parties at the customer's expense. The Exchange does not offer
contiguous intrafirm cabinet connectivity as a standalone connectivity
service and does not assess a recurring fee for such customer-directed
arrangements. If requested by the customer, however, the Exchange may
provide installation assistance or furnish cabling on an ancillary
basis under the Custom Installation provision of Rule General 8,
Section 1(d).
Proposed Rule Change
The Exchange now proposes to amend Rule General 8 to expressly list
non-contiguous intrafirm cabinet connectivity as a subset of Fiber \6\
connectivity under Rule General 8, Section 1(b). To effect this change,
the Exchange proposes to amend Rule General 8 to (1) explicitly list
``Intrafirm Cabinet Connectivity'' as a subset of Fiber connectivity
under that subsection; and (2) eliminate the availability of non-
contiguous intrafirm cabinet connectivity under Rule General 8, Section
1(d). Thus, as proposed, customers would no longer have the option of
selecting intrafirm cabinet connectivity under Rule General 8, Section
1(d).
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\6\ See Rule General 8, Section 1(b).
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As discussed above, the availability of non-contiguous intrafirm
cabinet connectivity under Rule General 8 is not new. Rather, that
service has long been available, whether as a subset of Fiber under
Rule General 8, Section 1(b), or as part of the broader Custom
Installation offering under Section 1(d) of that Rule. The Exchange now
proposes to list that service expressly within the Fiber connectivity
provisions of Rule General 8, Section 1(b), thereby providing greater
transparency regarding the service's availability and applicable
pricing within the Exchange's connectivity fee schedule. As noted
above, customers would no longer have the option of selecting
installation for non-contiguous intrafirm cabinet connectivity under
Rule General 8, Section 1(d).
As proposed, non-contiguous intrafirm cabinet connectivity within
the Exchange's data center halls would be administered directly by the
Exchange.\7\ As part of the Exchange's continuing efforts to enhance
the integrity of its data center operations and as of approximately the
second quarter of 2026, all non-contiguous intrafirm cabinet
connectivity will be furnished, monitored, and managed by the Exchange,
as discussed below. As proposed, and in connection with the Exchange's
ongoing investments in, and standardization of, its data center
connectivity infrastructure, the Exchange will supply, inventory, and
audit the fiber used for non-contiguous intrafirm cabinet connectivity
within the Exchange's data center halls. Consistent with that approach,
all data center customers seeking non-contiguous intrafirm cabinet
connectivity would be required to obtain that connectivity from the
Exchange, and third parties would no longer be permitted to provide
intrafirm cabinet fiber connectivity within the Exchange's data center
halls.
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\7\ By contrast, the provision of contiguous cabling between
adjacent cabinets licensed to the same customer would remain
generally customer-directed and would not constitute an Exchange
connectivity offering, other than to the extent a customer requests
ancillary installation assistance or cabling through the Custom
Installation service under Rule General 8, Section 1(d). The
Exchange would, however, continue to exercise supervisory oversight
over the relevant data center space and the conditions under which
such cabling may be installed, maintained, and accessed, consistent
with its responsibility for the operation and integrity of its
facilities.
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The proposal would enhance the integrity of the Exchange's systems
by reducing dependence on third-party provided intrafirm cabinet fiber
within the Exchange's data center halls and instead placing those
connectivity components under Nasdaq's direct administration. This
would provide the Exchange with greater end-to-end oversight of the
relevant connectivity infrastructure, including how it is furnished,
tracked, audited, and maintained. The Exchange believes that such
oversight strengthens controls around the physical environment
supporting access and connectivity, improves auditability and
troubleshooting, and promotes consistent operational standards across
the data center campus.
Amended Fees for Intrafirm Cabinet Connectivity
The Exchange next proposes to amend the fees applicable to non-
contiguous intrafirm cabinet connectivity. As discussed above, with
respect to non-contiguous intrafirm cabinet connectivity, today
customers can order such services as a standard Fiber connection under
Rule General 8, Section 1(b) for an installation fee of $550 and no
ongoing monthly fee. Alternatively, customers can choose a custom
installation for an installation-specific price as provided under the
Custom Installation provision under Rule General 8, Section 1(d).
The Exchange now proposes to restructure and amend the fees for
such service. Specifically, the Exchange proposes to charge an ongoing
monthly fee of $385.00 for a single non-contiguous intrafirm cabinet
cross-connect. For customers seeking multiple cross-connects, the
Exchange would offer bundled monthly pricing of $450.00 for 6 cross-
connects, $540.00 for 12 cross-connects, $630.00 for 18 cross-connects,
and $720.00 for 24 cross-connects.\8\ The Exchange would not charge an
installation fee for the service. As proposed, customers would no
longer have the option of ordering such service under Rule General 8,
Section 1(d).
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\8\ To effectuate these changes, the Exchange proposes to amend
Rule General 8, Section 1(b) as follows. First, the Exchange would
insert, immediately after the bullet titled ``TNO Cross Connect,'' a
new bullet titled ``Intrafirm Cabinet Connectivity.'' Second, the
Exchange proposes to insert a note designated with a triple asterisk
(``***'') adjacent to that description, together with its
accompanying note text to read as follows: ``Applicable only to non-
contiguous, same-customer-licensed intrafirm-cabinet connectivity
that traverses shared data center space; not applicable to
contiguous, same-customer-licensed intrafirm-cabinet connectivity
that does not traverse shared data center space.'' Third, the
Exchange would insert, where the column titled ``Installation Fee''
intersects the description of the proposed Intrafirm Cabinet
Connectivity, the figure ``$0''. Finally, the Exchange would insert,
where the column titled ``Ongoing Monthly Fee'' intersects the
description of the proposed service, the various offerings for 1 and
up to 24 cross-connects, including their associated fees, as
described herein. The Exchange believes these proposed changes are
appropriate to reflect that non-contiguous Intrafirm Cabinet
connectivity would be expressly identified under Section 1(b) of
Rule General 8, as proposed, and to conform Section 1(b) of that
Rule accordingly. See proposed Rule General 8.
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The Exchange is proposing no other changes to Rule General 8.
The Exchange believes that the proposed fees are reasonable because
they reflect the Exchange's investment in, and ongoing provision,
auditing, administration, and maintenance of, the fiber and related
infrastructure necessary to provide non-contiguous intrafirm cabinet
connectivity within the Exchange's data center campus. The Exchange
also believes that the proposed fees are reasonable because they
compare favorably to the fees charged by another national securities
exchange for a similar connectivity offering. As discussed below, the
Exchange's proposed monthly fees are lower than those charged by the
New
[[Page 34863]]
York Stock Exchange (``NYSE'') at each comparable service level, and
the Exchange would not charge any installation fee for the service. The
Exchange believes that this comparison provides an objective external
benchmark supporting the reasonableness of the proposed fee levels.
Specifically, NYSE offers Data Center Fiber Cross Connect \9\ and
charges a $500 initial charge plus a $600 monthly charge for a single
cross-connect. For a bundle of six cross-connects, NYSE charges a $500
initial charge plus a $1,800 monthly charge. For a bundle of 12 cross-
connects, NYSE charges a $500 initial charge plus a $3,000 monthly
charge. For a bundle of 24 cross-connects, NYSE charges a $500 initial
charge plus a $4,680 monthly charge.
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\9\ See New York Stock Exchange LLC, Connectivity Fee Schedule
(Mar. 27, 2026) (setting forth fees for Data Center Fiber Cross
Connect), available at <a href="https://www.nyse.com/publicdocs/nyse/Wireless_Connectivity_Fees_and_Charges.pdf">https://www.nyse.com/publicdocs/nyse/Wireless_Connectivity_Fees_and_Charges.pdf</a>.
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By comparison, the Exchange proposes to charge no installation fee
and lower monthly fees at each comparable service level. For a single
cross-connect, the Exchange's proposed monthly fee of $385.00 is
$215.00 lower than NYSE's $600.00 monthly fee, and the Exchange would
not charge NYSE's $500 initial fee. For a bundle of six cross-connects,
the Exchange's proposed monthly fee of $450.00 is $1,350.00 lower than
NYSE's $1,800.00 monthly fee, again with no installation fee. For a
bundle of 12 cross-connects, the Exchange's proposed monthly fee of
$540.00 is $2,460.00 lower than NYSE's $3,000.00 monthly fee, also with
no installation fee. For a bundle of 24 cross-connects, the Exchange's
proposed monthly fee of $720.00 is $3,960.00 lower than NYSE's
$4,680.00 monthly fee, likewise with no installation fee. The Exchange
believes that this comparison demonstrates that its proposed fees are
materially lower than the fees charged by another national securities
exchange for a similar connectivity service, thereby supporting the
reasonableness of the proposed fee levels.
Implementation
The Exchange proposes to implement the proposed changes on or about
the second quarter of 2026. The Exchange will announce the specific
implementation date via Nasdaq's Customer Portal.
2.Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\10\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\11\ in particular, because it
provides for the equitable allocation of reasonable dues, fees, and
other charges among members, issuers, and other persons using Exchange
facilities, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes that the proposed fees for non-contiguous
intrafirm cabinet connectivity are reasonable because they reflect the
Exchange's investment in, and ongoing provision, auditing,
administration, and maintenance of, the fiber and related
infrastructure necessary to provide that connectivity within the
Exchange's data center campus. As discussed above, the Exchange is
standardizing and directly administering this connectivity service as
part of its broader efforts to enhance the integrity, consistency, and
oversight of its data center infrastructure. The Exchange believes it
is reasonable to assess fees designed to recover a portion of the costs
associated with furnishing, inventorying, auditing, and maintaining the
infrastructure used to provide the service.
The Exchange also believes that the proposed fees are reasonable
because they compare favorably to the fees charged by another national
securities exchange for a similar connectivity offering. As discussed
above, NYSE charges a $500 initial fee plus a $600 monthly fee for a
single Data Center Fiber Cross Connect, as well as substantially higher
monthly fees for bundled options, whereas the Exchange would charge no
installation fee and lower monthly fees at each comparable service
level. The Exchange believes that NYSE's pricing for a similar
connectivity offering provides a useful external benchmark supporting
the conclusion that the proposed fees are reasonable.
The Exchange further believes that the proposed fees represent an
equitable allocation of reasonable fees and are not unfairly
discriminatory because they would apply uniformly to all similarly
situated customers that obtain non-contiguous intrafirm cabinet
connectivity. As discussed above, all Exchange data center customers
seeking non-contiguous intrafirm cabinet connectivity services would
have to obtain such service directly from the Exchange. Thus, all
customers seeking that service would be subject to the same fee
schedule, and each bundled option would be available on equal terms to
any customer that elects the relevant service level. To the extent the
proposal provides different pricing based on the number of cross-
connects purchased, that distinction is based solely on volume and
would apply equally to all customers.
The Exchange also believes that the proposal to identify non-
contiguous intrafirm cabinet connectivity expressly within Rule General
8, Section 1(b) is consistent with the Act because it would make the
Exchange's fee schedule clearer and more transparent by expressly
listing a service that has long been available as part of the
Exchange's connectivity offerings. The proposal would thus make the
schedule more informative for customers seeking connectivity services
within the Exchange's data center campus.
Finally, the Exchange does not believe that the proposal is
designed to permit unfair discrimination because the service is offered
to customers that require connectivity between their own cabinets
within the Exchange's data center campus, and the proposed fees would
apply uniformly to all such customers. Customers that do not require
the service would not be charged the fee, and customers that do require
the service would be charged on the same terms.
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 proposed fees would
apply uniformly to all customers that request non-contiguous intrafirm
cabinet connectivity. The Exchange recognizes that, under the proposal,
customers seeking non-contiguous intrafirm cabinet connectivity within
the Exchange's data center halls would be required to obtain that fiber
connectivity from Nasdaq, and third parties would no longer be
permitted to provide such non-contiguous intrafirm cabinet fiber
connectivity within the Exchange's data center halls. The Exchange
believes that any resulting impact on competition is necessary and
appropriate in furtherance of the purposes of the Act because the
requirement is designed to support a standardized, centrally
administered, monitored, and auditable connectivity environment within
the Exchange's data center campus. The Exchange believes that
administering this connectivity directly would improve its ability to
inventory, maintain, troubleshoot, and monitor the relevant fiber
infrastructure, thereby
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promoting reliability and operational integrity.
The Exchange also does not believe that the proposed fees would
impose an undue burden on competition among customers because the fees
would apply on an equal basis to all similarly situated customers and
are lower than fees charged by NYSE for a comparable connectivity
offering. The Exchange believes that the proposed service is
substantively comparable to the NYSE offering used for comparison
purposes and therefore believes that the comparison supports the
conclusion that the proposed fee levels are within a reasonable range
and are not unduly burdensome for customers that purchase the service.
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.\12\
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\12\ 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#89fbfce5eca4eae6e4e4ece7fdfac9faeceaa7eee6ff"><span class="__cf_email__" data-cfemail="d1a3a4bdb4fcb2bebcbcb4bfa5a291a2b4b2ffb6bea7">[email protected]</span></a>. Please include
file number SR-ISE-2026-27 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-2026-27. 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-2026-27 and should be submitted on
or before June 30, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-11481 Filed 6-8-26; 8:45 am]
BILLING CODE 8011-01-P
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