Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Connectivity Schedule and Discontinue a Previously Proposed Offering

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<title>Federal Register, Volume 91 Issue 161 (Friday, August 21, 2026)</title>
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[Federal Register Volume 91, Number 161 (Friday, August 21, 2026)]
[Notices]
[Pages 54419-54421]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17059]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106153; File No. SR-GEMX-2026-30]


Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the 
Exchange's Connectivity Schedule and Discontinue a Previously Proposed 
Offering

August 18, 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 August 17, 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.
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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 (1) amend Rule General 8, Section 1(b) to 
remove certain fiber optic-delivered market data offerings and certain 
discontinued wireless connectivity services, and (2) discontinue a 
certain Proximity-On-Demand (``POD'') offering that was previously 
proposed but not implemented. 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

[[Page 54420]]

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 (1) amend Rule General 8, Section 1(b) to 
remove certain fiber optic-delivered market data offerings and certain 
discontinued wireless connectivity services, and (2) discontinue a 
certain Proximity-On-Demand (``POD'') offering \3\ that was previously 
proposed but not implemented.
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    \3\ See Securities Exchange Act Release No. 100485 (July 10, 
2024), 89 FR 57971 (July 16, 2024) (SR-GEMX-2024-16).
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    First, the Exchange proposes to remove certain fiber optic-
delivered market data connectivity offerings set forth in Rule General 
8, Section 1(b), including their associated fees and explanatory 
language. These offerings consist of market data connectivity to the 
Nasdaq Data Center for SIAC, CTS/CQS, OpenBook Ultra, and ArcaBook 
Multicast delivered via a fiber optic network. The Exchange is 
terminating these offerings effective September 30, 2026, because they 
are subscribed to by fewer than three customers, these offerings are 
available from vendors other than the Exchange, and the Exchange has 
provided existing customers with 90-days' notice that the offerings 
will terminate on that date. The Exchange also proposes to remove the 
related explanatory language providing, in general, that pricing is for 
connectivity only, is similar to connectivity fees imposed by other 
vendors, is generally based on the amount of bandwidth needed to 
accommodate a particular feed, and that the Exchange is not the 
exclusive method to obtain market data connectivity.\4\ The Exchange 
believes that it is appropriate to remove these offerings and 
associated fees and related provisions from its rules as the Exchange 
is terminating these offerings effective September 30, 2026, and 
removal of these offerings as proposed would thus enhance the accuracy 
of the Exchange's rulebook and facilitate its use.
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    \4\ See proposed Rule General 8, Section 1(b).
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    Second, the Exchange proposes to further amend Rule General 8, 
Section 1(b) to remove the multicast market data feeds delivered to the 
Nasdaq Data Center via a wireless network, including microwave or 
millimeter wave connectivity. The specific wireless connectivity 
offerings being removed are NYSE Equities (Arca Integrated), NYSE 
Equities (NYSE Integrated), BATS Multicast PITCH for BZX and BYX, 
Direct EDGE Depth of Book for EDGA and EDGX, CME Multicast Total, CME 
Equities Futures Data Only, CME Fixed Income Futures Data Only, and CME 
Metals Futures Data Only. The Exchange also proposes to remove from 
subparagraph (b) of Rule General 8 the associated installation fees, 
recurring monthly fees, as well as the associated volume-based discount 
language applicable to microwave or millimeter wave wireless 
subscriptions.\5\ The Exchange believes that it is appropriate to 
remove these offerings as these market data feed offerings were 
terminated effective August 31, 2025, and customers were provided with 
more than 90 days' notice of their termination prior to the offerings' 
effective termination date.
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    \5\ See Proposed Rule General 8, Section 1(b).
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    Finally, the Exchange proposes to discontinue the POD offering 
described in SR-GEMX-2024-16. In that filing, the Exchange proposed to 
launch POD as a managed colocation solution under which applications 
would be deployed on managed infrastructure in the form of virtual or 
dedicated servers in the colocation space. The Exchange stated in SR-
GEMX-2024-16 that implementation of the POD offering would coincide 
with a subsequent fee filing establishing applicable fees. The Exchange 
did not file fees for POD and did not otherwise offer the POD services 
proposed in SR-GEMX-2024-16. The offering did not attract sufficient 
demand and therefore never fully materialized. The Exchange now 
proposes to discontinue the offering and not proceed with 
implementation of POD as described in SR-GEMX-2024-16.
    The proposed changes are designed to update the rulebook to 
eliminate products or services that are no longer offered, are being 
terminated, or were never implemented. The proposal does not introduce 
any new service, fee, or obligation, and it does not affect the 
availability of any currently offered Exchange service. The proposal 
also would thus update the Exchange's rulebook, enhance its clarity, 
and facilitate its use.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\7\ in particular, because 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.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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    The proposed rule change would protect investors and the public 
interest by ensuring that the Exchange's rules accurately reflect the 
connectivity services that are currently available. Removing obsolete 
rule text relating to the Rule General 8, Section 1(b) fiber optic-
delivered market data connectivity offerings that will terminate 
effective September 30, 2026, will reduce potential confusion and 
improve the clarity and accuracy of the Exchange's rulebook. The 
Exchange has provided existing customers with 90-days' notice of the 
termination, the offerings are used by fewer than three customers, and 
the relevant feeds are available from third-party vendors other than 
the Exchange. In addition, the proposed deletion of certain wireless 
offerings, including related fee and discount provisions, will further 
conform the rulebook to the termination of those wireless connectivity 
offerings, which terminated effective August 31, 2025. Similarly, 
confirming that the Exchange will not proceed with implementation of 
POD as described in SR-GEMX-2024-16 will make clear that the Exchange 
does not offer, and will not proceed with implementing, those services.
    The proposal is also consistent with Section 6(b)(5) because it 
does not unfairly discriminate among market participants. The Rule 
General 8, Section 1(b) fiber optic-delivered market data connectivity 
offerings will terminate for all customers effective September 30, 
2026, after 90-days' notice to existing customers, and the relevant 
feeds remain available from third-party vendors other than the 
Exchange. The proposed removal of certain wireless offerings, including 
related fee and discount provisions, will apply uniformly and merely 
conforms the rulebook to the termination of those wireless connectivity 
services, which terminated effective August 31, 2025. Finally, the POD 
offering that the Exchange proposes to discontinue was never 
implemented or offered to any market participant. Accordingly, the 
proposal would not change the terms on which any market participant may

[[Page 54421]]

obtain any currently available Exchange service. Rather, the proposal 
would enhance the transparency and accuracy of the Exchange's rulebook 
by ensuring that the offerings reflected in the rulebook are currently 
available or otherwise accurately described.

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 proposal is limited to 
removing obsolete rule text and related fee provisions for services 
that have been terminated, will be terminated after notice to affected 
customers, or were never implemented. Specifically, the proposal would 
remove rule text relating to certain Rule General 8, Section 1(b) fiber 
optic-delivered market data connectivity offerings that will terminate 
effective September 30, 2026 after 90-days' notice to existing 
customers; certain wireless connectivity offerings and related fee and 
discount provisions that were terminated effective August 31, 2025; and 
POD, an offering that was never implemented by the Exchange. Because 
the proposal does not introduce any new service, fee, access 
requirement, or differential treatment, it will not impose any burden 
on intermarket or intramarket competition.
    The proposal will not burden intramarket competition because it 
will apply uniformly to all market participants. The Rule General 8, 
Section 1(b) fiber optic-delivered market data connectivity offerings 
will terminate for all customers after 90-days' notice, are used by 
fewer than three customers, and the relevant feeds remain available 
from third-party vendors other than the Exchange. The wireless 
connectivity offerings and related provisions will be removed uniformly 
because the underlying services were previously terminated. And the POD 
offering was never made available to any market participant. 
Accordingly, the proposal would not alter the competitive position of 
any market participant or change the terms on which any participant may 
obtain any currently available Exchange service.
    The proposal will not burden intermarket competition because it 
does not affect the ability of other exchanges, vendors, or market 
participants to offer, obtain, or compete with respect to market data 
connectivity, order entry, or colocation-related services. Rather, the 
proposal merely conforms the Exchange's rulebook to the current 
availability of its services and removes obsolete provisions that no 
longer reflect operative offerings.

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 \8\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 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.
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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#156760797038767a7878707b6166556670763b727a63"><span class="__cf_email__" data-cfemail="3d4f485158105e5250505853494e7d4e585e135a524b">[email&#160;protected]</span></a>. Please include 
file number SR-GEMX-2026-30 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-2026-30. 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-2026-30 and should be submitted on 
or before September 11, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-17059 Filed 8-20-26; 8:45 am]
BILLING CODE 8011-01-P


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