Nasdaq GEMX Updates Options Regulatory Fee Methodology
Published Date: 8/6/2025
Notice
Summary
Starting January 2, 2026, Nasdaq GEMX is changing how it charges its Options Regulatory Fee (ORF). Now, only options trades done on GEMX and cleared in the Customer range at the Options Clearing Corporation will be charged this fee. This update affects traders using GEMX and could change the fees they pay for certain options transactions.
Analyzed Economic Effects
6 provisions identified: 3 benefits, 1 costs, 2 mixed.
ORF Only on GEMX Customer Trades
Starting January 2, 2026, GEMX will assess its Options Regulatory Fee (ORF) only for Customer options transactions that are executed on GEMX and cleared in the OCC Customer range. GEMX will not assess ORF on Customer executions that occur on other exchanges, even if they are later cleared by an OCC clearing member.
ORF Rate Increase to $0.0116
Effective January 2, 2026, GEMX proposes to raise the ORF from $0.0009 per contract side (the August 1, 2025 level) to $0.0116 per contract side for Customer contracts executed on GEMX. This is a per-contract increase that will apply to Customer contracts subject to the ORF methodology change.
Market Makers and Certain Firms Excepted from ORF
GEMX continues to except Market Maker transactions (including Market Maker orders and quotes) and does not assess ORF on Firm Proprietary and Broker-Dealer transactions. The Exchange states these exclusions are intended to allow liquidity providers and sophisticated firms to manage costs and quoting responsibilities.
Billing Based on Execution Clearing Instructions
GEMX will bill ORF based on the clearing instruction provided on the execution trade date and will not consider CMTA changes or transfers that occur at OCC after execution (except same-day adjustments on GEMX). The fee therefore will be assessed to the clearing member on record at execution on GEMX.
Temporary Change—Sunsets February 1, 2026
The proposed ORF methodology and the $0.0116 per contract side rate will sunset on February 1, 2026, at which point GEMX would revert to the prior ORF methodology and the $0.0009 per contract side rate. The Exchange may reconsider the sunset date in early 2026.
ORF Revenue Capped at 82% of Regulatory Cost
GEMX will endeavor to ensure that ORF Regulatory Revenue will not exceed 82% of Options Regulatory Cost and in all cases will continue to ensure that ORF Revenue does not exceed total Options Regulatory Cost. The Exchange says fines and other regulatory fees offset regulatory costs.
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