Nasdaq Implements New Credit Tier for Non-Displayed Liquidity Orders
Effective Oct. 1 2026, the rule grants $0.0015 per share credit on Tape A/B and $0.0010 on Tape C to members meeting new volume thresholds.
On September 30, 2026, The Nasdaq Stock Market LLC filed a proposed rule change (Release No. 34-106607; File No. SR-NASDAQ-2026-086) with the SEC. The filing is effective upon filing, and the Exchange has designated the amendments to be operative on October 1, 2026.
The amendment revises Nasdaq Equity 7, Section 118, to establish a new credit tier for non-displayed orders (other than Supplemental Orders) that provide liquidity. The credit amounts remain $0.0015 per share for executions on Tape A or Tape B and $0.0010 per share for Tape C. Qualification now requires a reference month of August 2026, a 5% increase in non-displayed liquidity (other than midpoint orders) relative to the member's February 2026 volume, and the tier will expire in February 2027. The prior tier, which expired at the end of August 2026, required a 0.10% share of Consolidated Volume and a 30% increase in non-displayed liquidity.
The Exchange states the purpose is to incentivize members to increase non-displayed liquidity, thereby improving overall market quality for securities priced at $1 or more. The proposal is asserted to be consistent with Section 6(b) of the Securities Exchange Act of 1934, which mandates equitable allocation of fees and prohibits unfair discrimination.
The Commission is publishing this notice to solicit comments from interested persons. The text of the proposed rule change is available on Nasdaq's website and at its principal office.
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