Federal Register #SR-GEMX-2026-15

SEC Notice: Nasdaq GEMX Proposed Rule Change for Auction Mechanisms

This notice concerns a proposed rule change by Nasdaq GEMX, LLC, published by the Securities and Exchange Commission (SEC), regarding auction mechanisms on the GEMX options exchange. - Government Buyer: - Securities and Exchange Commission (SEC) - Vendor/Exchange Mentioned: - Nasdaq GEMX, LLC - Products/Services Requested: - No products or services are being procured; this is a regulatory notice, not a solicitation or award - Key Details of the Rule Change: - Amends the Facilitation Mechanism, Solicited Order Mechanism (SOM), and Price Improvement Mechanism (PIM) on GEMX - Permits Market Makers assigned to the options class to be solicited for initiating orders in these mechanisms - Aims to enhance liquidity and price improvement opportunities - Aligns GEMX's rules more closely with other exchanges, such as Cboe - Includes amendments to Options 5, Section 4, clarifying handling of Immediate-or-Cancel (IOC) orders - Unique/Notable Requirements: - No procurement or acquisition of goods/services is involved; this is a regulatory update affecting exchange operations only

Description

Nasdaq GEMX, LLC filed a proposed rule change with the Securities and Exchange Commission to amend various auction mechanisms including the Facilitation Mechanism, Solicited Order Mechanism (SOM), and Price Improvement Mechanism (PIM). The change permits orders for the accounts of Market Makers assigned to the options class to be solicited for the initiating order submitted for execution against an agency order in these mechanisms. The proposal aims to enhance liquidity and price improvement opportunities in these auctions and aligns GEMX's rules more closely with other exchanges. The rule change is effective immediately and is intended to be implemented on or before Q3 2026.

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