Federal Register #SR-ISE-2026-52

Proposed Nasdaq ISE change to cross-market risk protection with GEMX

The Securities and Exchange Commission published a proposed Nasdaq ISE rule change affecting how members apply Market Wide Risk Protection across affiliated options exchanges. - Regulator: Securities and Exchange Commission (SEC); this is a regulatory notice, not a government procurement. - Organizations named: Nasdaq ISE, LLC; Nasdaq GEMX, LLC; Nasdaq MRX, LLC; Nasdaq PHLX LLC; Nasdaq Texas, LLC (NTX Options); and The Nasdaq Options Market LLC (NOM). - Proposed change: Eliminate the option for members to count Market Wide Risk Protection (MWRP) activity across both ISE and GEMX. ISE MWRP would apply separately on ISE, and members could continue setting separate risk parameters for each affiliated exchange where they are authorized to trade. - Risk coverage: Members seeking protection for GEMX activity would continue to use GEMX’s MWRP. The notice says MWRP for MRX, PHLX, NTX Options, and NOM also operates on a per-exchange basis. - Implementation: Planned by Q2 2027; the operative date will be announced separately. - Procurement items: No products, services, quantities, or part numbers are requested.

Description

Nasdaq ISE, LLC proposes to amend Options 3, Section 15(a)(1)(C), governing Market Wide Risk Protection (MWRP). The change would eliminate the option to apply MWRP counting programs and related order rejection or cancellation across ISE and its affiliate Nasdaq GEMX, making ISE MWRP apply on a per-exchange basis. Members would retain the ability to set separate risk parameters for each Nasdaq affiliated options exchange on which they are authorized to trade. The Exchange states that it will announce the operative date in an Options Trader Alert and implement the change on or before Q2 2027.

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