Statement Summary
On April 30, 2025, Nasdaq MRX, 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. This technology aims to reduce data jitter, enhancing the predictability of data processing during trading peaks while maintaining a constant time interval for data packet delivery. Although it increases determinism, it does not inherently guarantee lower latency. The proposal responds to customer demand for greater consistency in market data transmission. The MRX Depth of Market Feed provides comprehensive order and quote information, and no significant barriers to competition are expected from its implementation. The FPGA service is set to be available starting June 1, 2025, with a fee schedule to follow in a separate filing. Interested parties are invited to comment on the proposal as part of the SEC’s review process.
Original Statement
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103038; File No. SR-MRX-2025-09]
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Offer FPGA Technology as an Optional Delivery Mechanism for the Nasdaq MRX Depth of Market Data Feed
May 13, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”), and Rule 19b-4 thereunder, notice is hereby given that on April 30, 2025, Nasdaq MRX, LLC (“MRX” 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.
Proposed Rule Change Details
I. Terms of the Proposed Rule Change
The Exchange proposes to offer FPGA technology as an optional delivery mechanism for the Nasdaq MRX Depth of Market Data Feed.
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.
II. Purpose of the Proposed Rule Change
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.
MRX proposes to offer FPGA technology as an optional delivery mechanism for the Nasdaq MRX Depth of Market Data Feed. This technology is currently available on the Nasdaq Stock Market, LLC, Nasdaq Phlx (for equities), and Nasdaq BX, as well as the Nasdaq Options Market.
FPGA is a hardware-based delivery mechanism that utilizes an integrated circuit programmed to reduce “jitter”—a technical term referring to the deviation in amplitude, phase timing or width of a signal pulse in a digital signal. Reducing jitter allows data to be processed in a more predictable, or “deterministic”, fashion. This improves the predictability of data transfer during times of peak market activity.
III. Statutory Basis
The Exchange believes that its proposal is consistent with Section 6(b) of the Act, in general, and furthers the objectives of Section 6(b)(5) of the Act, in particular, as it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and to protect investors and the public interest.
Comments and Next Steps
No written comments were either solicited or received. Interested persons are invited to submit written data, views, and arguments concerning the proposed rule change. Comments may be submitted via email or paper mail, and all submissions should refer to file number SR-MRX-2025-09.
The proposal will facilitate the ingestion of exchange data and is expected to be available for customer use effective June 1, 2025.
