Nasdaq Tweaks Its Speed Bump and Kill Switch Market Rules
Published Date: 10/16/2026
Notice
Summary
Nasdaq ISE is updating its Market-Wide Speed Bump and Kill Switch rules to stop them from working together with its sister exchange, Nasdaq GEMX. This change affects traders using these protections to manage risk and will take effect immediately, helping keep markets safer without changing costs. The update simplifies how these safety tools work across the two exchanges.
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Market-Wide Speed Bump: Per-Exchange Only
If you are a Market Maker on Nasdaq ISE, the Market-Wide Speed Bump (Options 3, Section 15(a)(3)(B)(vii)) will no longer be able to apply across both ISE and Nasdaq GEMX. After the change, a Market Maker's MWSB parameter set on ISE will apply only to that Market Maker's activity on ISE; Market Makers who want the same protection on GEMX must set a separate MWSB on GEMX. The Exchange filed the change on October 1, 2026 and will implement it on or before Q2 2027.
Kill Switch: Applies Only to ISE Activity
If you are a Member that uses ISE Kill Switch (Options 3, Section 17), Kill Switch requests submitted on ISE will apply only to your activity on ISE and will not cancel or restrict orders on Nasdaq GEMX. Members may continue to submit separate Kill Switch requests for each Nasdaq affiliated options exchange where they trade. The Exchange filed the change on October 1, 2026 and will implement it on or before Q2 2027.
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Next: 2026-21131, Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Market-Wide Speed Bump and the Kill Switch
Nasdaq GEMX is updating its Market-Wide Speed Bump and Kill Switch rules to stop them from working together with its sister exchange, Nasdaq ISE. This change affects market makers who use these protections to manage risk and will take effect immediately, helping keep trading safer and smoother without extra costs. The update simplifies how these safety tools work across the two exchanges.