Statement Summary
On April 30, 2025, Nasdaq GEMX, LLC filed a proposed rule change with the SEC to offer Field-Programmable Gate Array (FPGA) technology as an optional delivery mechanism for its Depth of Market Data Feed. FPGA technology helps reduce signal jitter, improving the predictability and consistency of data transmission during peak market activity. While it enhances determinism, it does not guarantee lower latency. The proposal aims to meet customer demand for improved data handling solutions similar to those already provided by other Nasdaq markets. The implementation of this service is set for June 1, 2025, and a separate fee schedule will be proposed. There was no opposition to the rule change, which has been deemed effective immediately.
Original Statement
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103037; File No. SR-GEMX-2025-10]
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change to Offer FPGA Technology as an Optional Delivery
Mechanism for the Nasdaq GEMX Depth of Market Data Feed
May 13, 2025.
Proposed Rule Change Details
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934, Nasdaq GEMX, LLC (“GEMX” or “Exchange”) filed with the Securities and Exchange Commission (“SEC”) the proposed rule change which aims to offer FPGA technology as an optional delivery mechanism for the Nasdaq GEMX Depth of Market Data Feed.
Purpose and Statutory Basis
The Exchange proposes to offer FPGA technology as an optional delivery mechanism for the Nasdaq GEMX Depth of Market Data Feed. This technology is designed to reduce signal jitter—the variability in the timing of market data packets transmitted by the exchange—allowing data to be processed in a more predictable way. Key points include:
- Determinism and Latency: Increasing determinism does not guarantee lower latency.
- Processing consistency is improved during peak market activities.
- FPGA technology has broad applications across various industries.
Customer Impact
FPGA technology has been used by The Nasdaq Stock Market for over a decade. The proposed GEMX FPGA service is in response to customer demand, acknowledging the varying needs of customers in managing jitter and message throughput.
Implementation and Next Steps
The Exchange intends to make this product available on June 1, 2025, and will submit a proposed fee schedule for this product in a separate filing.
Solicitation of Comments
Interested persons are invited to submit written data, views, and arguments concerning the proposed rule change. Comments may be submitted electronically or via paper methods, referencing file number SR-GEMX-2025-10.
Conclusion
The proposed rule change aims to enhance the efficiency of data transmission for market participants and reflects the ongoing evolution of trading technologies in response to market demands.
