Nasdaq GEMX Removes Cross-Market Speed Bump and Kill Switch Features
The rule change, filed Oct. 1, 2026 and effective immediately, forces GEMX market makers and members to apply speed-bump and kill-switch protections only on a per-exchange basis, with implementation by Q2 2027.
On October 1, 2026, Nasdaq GEMX, LLC filed a proposed rule change with the Securities and Exchange Commission (Release No. 34-106652; File No. SR-GEMX-2026-36). The filing, announced in a notice on October 13, 2026, seeks to amend the Market-Wide Speed Bump (MWSB) at Options 3, Section 15(a)(3)(B)(vii) and the Kill Switch at Options 3, Section 17. The Exchange states the purpose is to eliminate the existing cross-market functionality between GEMX and its affiliate, Nasdaq ISE, LLC.
Currently, the MWSB permits market makers to request a market-wide parameter that applies to both GEMX and ISE, and the Kill Switch allows members to cancel orders across both markets. The proposal deletes the sentence in the MWSB rule that permits a cross-market parameter and removes the references in the Kill Switch rule that allow cross-market election, thereby requiring all protections to be applied on a per-exchange basis.
Nasdaq ISE has filed a companion rule change to make conforming amendments to its own MWSB and Kill Switch provisions. GEMX will announce the operative date in an Options Trader Alert and will implement the changes on or before the second quarter of 2027.
The Exchange cites Section 6(b) of the Securities Exchange Act of 1934 as the statutory basis, emphasizing that the harmonization is intended to promote consistent, transparent, and predictable risk-management functionality across Nasdaq-affiliated options exchanges and to protect investors and the public interest.
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