Federal Register #SR-ISE-2026-18

SEC Notice of Proposed Rule Change by Nasdaq ISE, LLC to Amend Auction Mechanisms

This notice announces a proposed rule change by Nasdaq ISE, LLC, published by the United States Securities and Exchange Commission (SEC), regarding auction mechanisms for options trading. - Government Buyer: - United States Securities and Exchange Commission (SEC) - OEMs/Vendors Mentioned: - Nasdaq ISE, LLC (proposing the rule change) - Cboe Exchange, Inc. (referenced as having similar approved amendments) - Products/Services Requested: - Regulatory amendment to auction mechanisms: Facilitation Mechanism, Solicited Order Mechanism (SOM), Price Improvement Mechanism (PIM), FLEX PIM, and FLEX SOM - No physical products or purchase quantities are requested; this is a regulatory change - Notable Requirements: - Amendments will allow orders for Market Makers assigned to options classes to be solicited for execution against agency orders - Aims to enhance liquidity provider participation and improve execution opportunities in paired auctions - Cboe Exchange, Inc. has received approval for similar amendments, indicating industry alignment - Place of Performance/Delivery: - SEC headquarters, Washington, DC - Federal Register as the publication venue

Description

The Securities and Exchange Commission (SEC) has filed a proposed rule change by Nasdaq ISE, LLC to amend various auction mechanisms including Facilitation Mechanism, Solicited Order Mechanism (SOM), Price Improvement Mechanism (PIM), FLEX PIM, and FLEX SOM. The amendments permit 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. The proposal aims to provide primary liquidity providers with additional ways to participate in paired auctions and improve execution opportunities. The changes are intended to be implemented on or before Q3 2026.

View original listing