Federal Register #SR-GEMX-2026-22

SEC Notice: Nasdaq GEMX NDX Options Surcharge Tiers and Cboe EDGX Clock Service Fees

This notice summarizes proposed rule changes by Nasdaq GEMX, LLC and Cboe EDGX Exchange, Inc., as published by the Securities and Exchange Commission (SEC): - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - OEMs and Vendors Mentioned: - Nasdaq GEMX, LLC (proposing NDX options surcharge changes) - Cboe EDGX Exchange, Inc. (proposing Clock Service fees) - Products/Services Requested or Impacted: - Nasdaq-100 Index (NDX) Options Surcharge - Tiered surcharge for electronic simple Non-Priority Customer orders removing liquidity - Surcharge rates per contract based on premium price: - $1.00 for premiums < $3.00 - $1.50 for $3.00 to < $10.00 - $2.00 for $10.00 to < $25.00 - $2.50 for $25.00 to < $50.00 - $3.00 for premiums ≥ $50.00 - Cboe EDGX Clock Service - Monthly subscription fee: $7,500 for 1 Gbps physical port providing time synchronization - Optional redundant connection: $2,500/month for an additional 1 Gbps port - Unique or Notable Requirements: - The NDX options surcharge is moving from a flat fee to a tiered structure to better align with risk and market impact - The Clock Service is a new offering for precise time synchronization, with an option for redundancy - Both proposals are intended to align fees with economic exposure and participant demand - No procurement of physical goods or traditional services; these are regulatory fee changes affecting market participants

Description

The Securities and Exchange Commission has issued a notice regarding a proposed rule change by Nasdaq GEMX, LLC to amend Options 7, Section 3 related to Index Options. The proposal involves amending the surcharge applicable to Nasdaq-100 Index (NDX) options, changing the surcharge from a flat rate to a tiered premium schedule based on the option premium price. The scaled surcharge aims to reflect differences in risk and market impact across premium levels, with higher-premium options incurring higher surcharges. The change is intended to harmonize best execution and interpositioning standards across self-regulatory organizations and reduce burdens on market participants.

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