Federal Register #SR-PHLX-2026-17

SEC Notice: Amendments to Nasdaq PHLX LLC Trading Protocols and NYSE American LLC Options Fee Schedule

This notice summarizes recent SEC publications regarding rule changes proposed by major financial exchanges: - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - OEMs and Vendors Mentioned: - Nasdaq PHLX LLC (Original Equipment Manufacturer for trading protocols and anti-internalization functionality) - NYSE American LLC (Vendor for options trading and fee schedule) - Products/Services Requested: - Amendments to Nasdaq PHLX LLC's anti-internalization functionality under Equity 4, Rule 3307 - Extends Port-Level Anti-Internalization Functionality to FIX and FLITE order entry protocols - Delays implementation of the proprietary CORE FIX Order Entry Protocol until before the end of 2026 - Modifications to NYSE American LLC's Options Fee Schedule - Increases Floor Broker credit cap to $5,500,000 per month - Eliminates FB AON CUBE Rebate and ATP Electronic Rebate - Unique or Notable Requirements: - No procurement of physical products or traditional services; these are regulatory amendments affecting trading protocols and fee structures - Changes are intended to improve market efficiency, align rulebooks with current practices, and provide enhanced order entry options for market participants - Implementation timelines are specified for both exchanges - Locations: - All actions and oversight are managed by the SEC at its Washington, DC headquarters

Description

The Securities and Exchange Commission published a notice regarding Nasdaq PHLX LLC's proposal to amend its anti-internalization functionality under Equity 4, Rule 3307. The amendment extends the Port-Level Anti-Internalization Functionality to additional order entry protocols (FIX and FLITE) and aligns the rulebook with current practices. Additionally, the implementation date of the CORE FIX Order Entry Protocol is extended to before the end of 2026. This proposal aims to improve trading efficiency and protect investors by reducing unwanted executions and providing market participants with enhanced order entry options.

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