Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NDX Fees

<NOTICE> SECURITIES AND EXCHANGE COMMISSION <DEPDOC>[Release No. 34-104090; File No. SR-ISE-2025-29]</DEPDOC> <SUBJECT>Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NDX Fees</SUBJECT> <DATE>September 26, 2025.</DATE> Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”), <SU>1</SU> <FTREF/> and Rule 19b-4 thereunder, <SU>2</SU> <FTREF/> notice is hereby given that on September 24, 2025, Nasdaq ISE, LLC (“ISE” or “Exchange”) filed with the Securities and Exchange Commission (“SEC” or “Commission”) the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. <FTNT> <SU>1</SU>  15 U.S.C. 78s(b)(1). </FTNT> <FTNT> <SU>2</SU>  17 CFR 240.19b-4. </FTNT> <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD> The Exchange proposes to amend the fees for Nasdaq 100® Index options  <SU>3</SU> <FTREF/> in the Exchange's Pricing Schedule at Options 7, Section 5. <FTNT> <SU>3</SU>  “NDX” means A.M. or P.M. settled options on the full value of the Nasdaq 100® Index. <E T="03">See</E> Options 7, Section 1(c). </FTNT> While the changes proposed herein are effective upon filing, the Exchange has designated the amendments become operative on October 1, 2025. The text of the proposed rule change is available on the Exchange's website at <E T="03">https://listingcenter.nasdaq.com/rulebook/ise/rulefilings,</E> and at the principal office of the Exchange. <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD> In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD> <HD SOURCE="HD3">1. Purpose</HD> The purpose of the proposed rule change is to amend the fees for the Nasdaq 100® Index (“NDX”)  <SU>4</SU> <FTREF/> and fees for the nonstandard expiration dates (“NDXP”). <SU>5</SU> <FTREF/> <FTNT> <SU>4</SU>  NDX represents A.M.-settled options on the full value of the Nasdaq 100 Index traded under the symbol NDX. </FTNT> <FTNT> <SU>5</SU>  NDXP represents P.M.-settled options on the full value of the Nasdaq 100 Index traded under the symbol NDXP. </FTNT> As set forth in Options 7, Section 5, the Exchange currently charges all Non-Priority Customer  <SU>6</SU> <FTREF/> orders in NDX and NDXP a $0.75 per contract transaction fee for simple transactions. Priority Customer  <SU>7</SU> <FTREF/> orders are currently assessed a $0.25 per contract transaction fee in NDX and NDXP for simple transactions. Note 1 of Options 7, Section 5 provides that for all executions in complex NDX orders for Non-Priority Customers, the applicable complex order fees for Non-Select Symbols in Section 4 will apply. Options 7, Section 4 Complex Orders Maker Fees in Select Symbols  <SU>8</SU> <FTREF/> for Non-Customers are assessed as follows: a $0.10 per contract for Market Makers, <SU>9</SU> <FTREF/> Firm Proprietary  <SU>10</SU> <FTREF/> /Broker-Dealers  and $0.20 per contract for Non-Nasdaq ISE Market Makers (FarMM). <SU>13</SU> <FTREF/> Options 7, Section 4 Complex Orders Maker Fees in Non-Select Symbols  <SU>14</SU> <FTREF/> for Non-Customers are assessed as follows: a $0.20 per contract for Market Makers, Firm Proprietary/Broker-Dealers, Professional Customers and Non-Nasdaq ISE Market Makers (FarMM). Options 7, Section 4 Complex Orders Taker Fees in Select Symbols for Non-Customers are assessed as follows: a $0.50 per contract for Market Makers, Firm Proprietary/Broker-Dealers, Professional Customers and Non-Nasdaq ISE Market Makers (FarMM). Options 7, Section 4 Complex Orders Taker Fees in Non-Select Symbols for Non-Customers are assessed as follows: a $1.15 per contract for Market Makers, Firm Proprietary/Broker-Dealers, Professional Customers and Non-Nasdaq ISE Market Makers (FarMM). <FTNT> <SU>6</SU>  “Non-Priority Customers” include Market Makers, Non-Nasdaq ISE Market Makers (FarMMs), Firm Proprietary/Broker-Dealers, and Professional Customers. <E T="03">See</E> Options 7, Section 1(c). </FTNT> <FTNT> <SU>7</SU>  A “Priority Customer” is a person or entity that is not a broker/dealer in securities, and does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s), as defined in Nasdaq ISE Options 1, Section 1(a)(37). Unless otherwise noted, when used in this Pricing Schedule the term “Priority Customer” includes “Retail.” A “Retail” order is a Priority Customer order that originates from a natural person, provided that no change is made to the terms of the order with respect to price or side of market and the order does not originate from a trading algorithm or any other computerized methodology. <E T="03">See</E> Options 7, Section 1(c). </FTNT> <FTNT> <SU>8</SU>  “Select Symbols” are options overlying all symbols listed on the Nasdaq ISE that are in the Penny Interval Program. <E T="03">See</E> Options 7, Section 1(c). </FTNT> <FTNT> <SU>9</SU>  The term “Market Makers” refers to “Competitive Market Makers” and “Primary Market Makers” collectively. <E T="03">See</E> Options 1, Section 1(a)(21). </FTNT> <FTNT> <SU>10</SU>  A “Firm Proprietary” order is an order submitted by a member for its own proprietary account. <E T="03">See</E> Options 7, Section 1(c). </FTNT> <FTNT> <SU>11</SU>  A “Broker-Dealer” order is an order submitted by a member for a broker-dealer account that is not its own proprietary account. <E T="03">See</E> Options 7, Section 1(c). </FTNT> <FTNT> <SU>12</SU>  A ”Professional Customer” is a person or entity that is not a broker/dealer and is not a Priority Customer. <E T="03">See</E> Options 7, Section 1(c). </FTNT> <FTNT> <SU>13</SU>  A “Non-Nasdaq ISE Market Maker” is a market maker as defined in Section 3(a)(38) of the Securities Exchange Act of 1934, as amended, registered in the same options class on another options exchange. <E T="03">See</E> Options 7, Section 1(c). </FTNT> <FTNT> <SU>14</SU>  “Non-Select Symbols” are options overlying all symbols excluding Select Symbols. <E T="03">See</E> Options 7, Section 1(c). </FTNT> At this time, the Exchange proposes to increase the Priority Customer pricing in NDX and NDXP from $0.25 to $0.50 per contract for simple orders. The Exchange is not proposing to amend its pricing for complex orders. Priority Customers will continue to be assessed a lower fee as compared to Non-Priority Customers. While the Exchange is increasing the fee, the Exchange believes that a Priority Customer fee of $0.50 per contract will continue to attract order flow to the Exchange. <HD SOURCE="HD3">2. Statutory Basis</HD> The Exchange believes that its proposal is consistent with Section 6(b) of the Act, <SU>15</SU> <FTREF/> in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act, <SU>16</SU> <FTREF/> in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. <FTNT> <SU>15</SU>  15 U.S.C. 78f(b). </FTNT> <FTNT> <SU>16</SU>  15 U.S.C. 78f(b)(4) and (5). </FTNT> The Exchange believes that its proposal to increase the Priority Customer pricing in NDX and NDXP from $0.25 to $0.50 per contract for simple executions is reasonable because Priority Customers will continue to be assessed a lower fee as compared to Non-Priority Customers. While the Exchange is increasing the fee, the Exchange believes that a Priority Customer fee of $0.50 per contract for simple executions will continue to attract order flow to the Exchange. The Exchange notes that market participants are offered different ways to gain exposure to the Nasdaq 100 Index, whether through the Exchange's proprietary products like options overlying NDX or XND, or separately through multi-listed options overlying Invesco QQQ Trust (“QQQ”). <SU>17</SU> <FTREF/> Offering such products provides market participants with a variety of choices in selecting the product they desire to utilize in order to gain exposure to the Nasdaq 100 Index. <FTNT> <SU>17</SU>   QQQ is an exchange-traded fund based on the same Nasdaq 100 Index as NDX and XND. </FTNT> The Exchange believes that its proposal is equitable and not unfairly discriminatory because it will be applied uniformly to all Priority Customers. Assessing lower fees to Priority Customers as compared to Non-Priority Customers is equitable and not unfairly discriminatory because Priority Customers liquidity benefits all market participants by providing more trading opportunities, which attracts market makers. An increase in the activity of these market participants in turn facilitates tighter spreads, which may cause an additional corresponding increase in order flow from other market participants, to the benefit of all market participants who may interact with the order flow. <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 16k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━