Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposal To Amend Equity 4 to Remove All References to the CORE FIX Order Entry Protocol

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<title>Federal Register, Volume 91 Issue 214 (Friday, November 6, 2026)</title>
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[Federal Register Volume 91, Number 214 (Friday, November 6, 2026)]
[Notices]
[Pages 70107-70109]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22655]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106807; File No. SR-NASDAQ-2026-092]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of a Proposal To Amend 
Equity 4 to Remove All References to the CORE FIX Order Entry Protocol

November 3, 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 October 22, 2026, The Nasdaq Stock Market LLC

[[Page 70108]]

(``Nasdaq'' 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 amend Equity 4 to remove all references to 
the CORE FIX order entry protocol.
    The text of the proposed rule change is available on the Exchange's 
website at <a href="https://listingcenter.nasdaq.com/rulebook/nasdaq/rulefilings">https://listingcenter.nasdaq.com/rulebook/nasdaq/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
    In March 2025 the Exchange added CORE FIX to its rulebook in Equity 
4, in anticipation of making this new order entry protocol available to 
Exchange Participants by the third quarter of 2025.\3\ In March 2026 
the Exchange extended the implementation date for CORE FIX to the end 
of 2026.\4\
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    \3\ See Securities Exchange Act Release No. 102661 (Mar. 13, 
2025), 90 FR 12858 (Mar. 19, 2025) (``Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change To Amend Equity 4, Rules 
4120, 4702 4703, and 4757'') (File No. SR-NASDAQ-2025-027).
    \4\ See Securities Exchange Act Release No. 105129 (Mar. 31, 
2026), 91 FR 17010 (Apr. 3, 2026) (``Notice of Filing and Immediate 
Effectiveness of a Proposal To Amend the Exchange's Anti-
Internalization Functionality in Equity 4, Rule 4757, and To Extend 
the Implementation Date of the CORE FIX Order Entry Protocol'') 
(File No. SR-NASDAQ-2026-023).
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    In spite of its best efforts, the Exchange has been unable to 
generate interest in CORE FIX among Exchange Participants. Therefore, 
rather than deploy an order entry protocol that Participants are not 
even interested in testing, the Exchange proposes to abandon its plans 
to deploy CORE FIX.\5\ This will allow the Exchange to better allocate 
its technological development resources. The Exchange notes that it 
will continue to offer all the order entry protocols that are currently 
available and operative on the Exchange--namely, OUCH, RASH, FLITE, and 
FIX.\6\
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    \5\ The Exchange will also submit, in short order, a separate 
fee filing to remove references to CORE FIX found in Equity 7 
(Pricing Schedule).
    \6\ See Equity 4, Rule 4702(a).
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    The Exchange proposes to eliminate all references to CORE FIX that 
are currently present in Equity 4. Specifically, these references are 
found in Rules 4120 (Limit Up-Limit Down Plan and Trading Halts), 4702 
(Order Types), 4703 (Order Attributes), and 4757 (Book Processing).\7\
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    \7\ Additionally, in a recent filing, the Exchange added to the 
rule text of Equity 4, Rule 4120, the online rulebook disclaimer 
that `References to ``CORE FIX'' will be implemented in 2026.' See 
Securities Exchange Act Release No. 106139 (Aug. 14, 2026), 91 FR 
53677 (Aug. 19, 2026) (``Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change To Amend Equity 4, Rule 4120 
Regarding Trading Halts'') (File No. SR-NASDAQ-2026-064). Therefore, 
as part of this filing, the Exchange proposes to delete this 
disclaimer in Rule 4120. The same disclaimer is also found at the 
top of Rules 4702, 4703, and 4757. However, those are only online 
disclaimers that the Exchange did not add to its rule text. Those 
online-only disclaimers will be deleted once the other references to 
CORE FIX are deleted from the Exchange's rule text, pursuant to this 
filing.
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    Finally, the Exchange proposes to use this filing to make a 
technical correction to Equity 4, Rule 4120(b)(1)(C)(ii)(e)(2). That 
rule provides that following a regulatory halt pursuant to the Limit 
Up-Limit Down Mechanism, ``limit-priced orders entered via the OUCH or 
CORE FIX protocols which are not assigned a Managed Pegging, 
Discretionary, or Reserve Order Attribute, the order shall be repriced 
upon entry only if the Price Bands are such that the price of the 
limit-priced interest to buy (sell) would be above (below) the Upper 
(Lower) Price Band.'' The reference to CORE FIX in that rule will be 
deleted as part of this filing. But the Exchange also wishes to correct 
this rule by adding the FLITE protocol, alongside the OUCH protocol. 
This is to reflect current Exchange functionality. In other words, the 
Exchange currently applies this rule to limit-priced orders entered via 
the OUCH of FLITE protocols, even though the FLITE protocol is not 
currently included in this rule. The Exchange proposes to correct this 
oversight in this filing. Therefore, pursuant to this filing, Equity 4, 
Rule 4120(b)(1)(C)(ii)(e)(2) will state that ``limit-priced orders 
entered via the OUCH or FLITE protocols which are not assigned a 
Managed Pegging, Discretionary, or Reserve Order Attribute, the order 
shall be repriced upon entry only if the Price Bands are such that the 
price of the limit-priced interest to buy (sell) would be above (below) 
the Upper (Lower) Price Band.''
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\8\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\9\ 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.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change is designed to 
promote just and equitable principles of trade because it will ensure 
that the Exchange's rulebook accurately reflects the order entry 
protocols that are available and operative on the Exchange. Removing 
references to CORE FIX, which the Exchange will not deploy, will avoid 
confusion among Participants and other market participants regarding 
the protocols available for order entry. The proposed technical 
correction to Rule 4120(b)(1)(C)(ii)(e)(2) will likewise make the rule 
text accurately reflect current Exchange functionality by adding the 
FLITE protocol alongside the OUCH protocol. The proposed rule change 
will not alter the operation of the Exchange's market, the treatment of 
orders, or the rights or obligations of Participants; the Exchange will 
continue to offer the OUCH, RASH, FLITE, and FIX protocols. 
Accordingly, the proposal will remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and 
will protect investors and the public interest by providing clear and 
accurate information concerning the Exchange's order entry protocols 
and order handling functionality.

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 proposed rule change is not 
designed to address any competitive issue; instead, its purpose is to 
ensure that the Exchange's rulebook accurately reflects the protocols 
that are available and

[[Page 70109]]

operative on the Exchange and the functionality currently provided 
through those protocols. Removing references to CORE FIX will not 
deprive any Participant of an available order entry protocol, because 
CORE FIX has not been deployed on the Exchange. The technical 
correction adding FLITE to Rule 4120(b)(1)(C)(ii)(e)(2) will not change 
the functionality available to Participants and will apply equally to 
all Participants. Participants will continue to be able to choose among 
the OUCH, RASH, FLITE, and FIX protocols based on their trading needs. 
Accordingly, the proposal will not impose any burden on competition, 
either among Exchange Participants or between the Exchange and other 
trading venues.

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 \10\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 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#5e2c2b323b733d3133333b302a2d1e2d3b3d70393128"><span class="__cf_email__" data-cfemail="e597908980c8868a8888808b9196a5968086cb828a93">[email&#160;protected]</span></a>. Please include 
file number SR-NASDAQ-2026-092 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-2026-092. 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-2026-092 and should be submitted 
on or before November 27, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-22655 Filed 11-5-26; 8:45 am]
BILLING CODE 8011-01-P


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