2026-07785NoticeWallet

Nasdaq Tweaks Auctions: Market Makers Get More Playtime

Published Date: 4/22/2026

Notice

Summary

Nasdaq ISE is updating its auction rules to let Market Makers join in more types of order auctions, like the Solicited Order Mechanism and Price Improvement Mechanism. This change helps trades happen faster and could save money by improving prices. The new rules took effect right after filing on April 13, 2026, so traders and Market Makers should get ready to use these improved auctions ASAP!

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Market Makers Can Be Solicited in Auctions

The exchange now permits Market Makers assigned to an options class to be solicited as the contra-side in paired electronic auctions (PIM, SOM, FLEX PIM, FLEX SOM) and in the Facilitation Mechanism. SOMs are for larger-sized orders (500 or more contracts) and the Facilitation Mechanism may be used for block-sized orders of 50 or more contracts; facilitating members may receive up to 40% participation at the final execution price. The change became effective upon filing on April 13, 2026 and the Exchange plans implementation on or before Q3 2026.

IOC Orders Revised to Be Rejected

The Exchange amends Options 5, Section 4(a) to state that Immediate-or-Cancel (IOC) orders will be rejected and will not be routed (rather than saying they will be cancelled and not routed). This language change is intended to clarify order-handling and is included in the filing effective April 13, 2026, with implementation on or before Q3 2026.

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Key Dates

Effective Date
Published Date
4/13/2026
4/22/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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