Statement Summary
Nasdaq MRX, LLC has proposed a rule change to amend the methodology for assessing its Options Regulatory Fee (ORF), to be effective January 2, 2026. This modification will limit the ORF only to options transactions executed on MRX and cleared in the Customer range at The Options Clearing Corporation (OCC). Currently, the ORF is assessed more broadly, including transactions executed on other exchanges. This change aims to streamline the assessment process, ensuring that ORF is collected from the correct party, typically the clearing member, thereby eliminating potential confusion. The new fee will also increase from $0.0010 to $0.0139 per contract side. The proposal underscores the exchange’s commitment to not exceeding 82% of its regulatory costs through ORF collection. Furthermore, there is a sunset clause for the proposal to revert to the previous methodology if conditions do not support its continuation. The SEC invites comments on this proposal as part of its review process.
Original Statement
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103103; File No. SR-MRX-2025-11]
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend the Methodology for its Options Regulatory Fee as of January 2, 2026
May 22, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”), and Rule 19b-4 thereunder, notice is hereby given that on May 20, 2025, Nasdaq MRX, LLC (“MRX” or “Exchange”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II 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.
Proposed Rule Change and Review
The Exchange proposes to amend MRX’s Pricing Schedule at Options 7, Section 5C, Options Regulatory Fee, to amend its current methodology of collection. While the changes proposed herein are effective upon filing, the Exchange has designated the proposed rule change to be operative on January 2, 2026.
The text of the proposed rule change is available on the Exchange’s Website at the principal office of the Exchange, and at the Commission’s Public Reference Room.
Exchange’s Statement of Purpose
The Exchange proposes to amend its current methodology of assessment and collection of the Options Regulatory Fee or “ORF” to assess ORF only for options transactions that occur on MRX that are cleared in the Customer range at The Options Clearing Corporation (OCC). With this proposal, MRX would not assess ORF for transactions that occur on other exchanges.
Background on Current ORF
Today, MRX assesses its ORF for each Customer option transaction that is either:
- Executed by a Member on MRX; or
- Cleared by an MRX Member at OCC in the Customer range, even if the transaction was executed by a non-Member of MRX, regardless of the exchange on which the transaction occurs.
If the OCC clearing member is an MRX Member, ORF is assessed and collected on all ultimately cleared Customer contracts. For a non-Member clearing at OCC, ORF is collected only on cleared Customer contracts executed at MRX. The current MRX ORF is $0.0004 per contract side.
New ORF Collection Methodology
MRX has been reviewing its methodologies for the assessment and collection of ORF. As a result of this review, MRX proposes to modify its current ORF to continue to assess ORF for options transactions cleared by OCC in the Customer range, however ORF would be assessed to each MRX Member for executions that occur on MRX.
Specifically, the ORF would continue to be collected by OCC on behalf of MRX from MRX Members and non-Members for all Customer transactions executed on MRX. ORF would be assessed and collected on all ultimately cleared Customer contracts.
Economic Impact of the Proposal
The Exchange will ensure that ORF Regulatory Revenue generated does not exceed 82% of Options Regulatory Cost. The Exchange will notify Members via an Options Trader Alert of any change in the amount of the fee at least 30 calendar days prior to the effective date of the change.
Proposal Sunset Clause
This proposal will sunset on February 1, 2026, at which point it would revert back to the ORF methodology and rate ($0.0004 per contract side) that was in effect prior to this rule change.
Comments and Commission Action
Interested persons are invited to submit written data, views and arguments concerning the proposed rule change. Comments may be submitted by any of the following methods:
- Electronic Comments: Please use the Commission’s internet comment form.
- Paper Comments: Send comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-MRX-2025-11.
The Commission may temporarily suspend such rule change within 60 days. If so, the Commission will institute proceedings to determine whether the proposed rule change should be approved or disapproved.
Conclusion
The Exchange believes the proposed rule change is consistent with the Securities Exchange Act requirements and looks forward to feedback from interested parties regarding this important operational adjustment within the MRX trading framework.
