Nasdaq ISE files immediate rule change to modify complex order rebates

On August 6, 2026, Nasdaq ISE, LLC filed a proposed rule change with the Securities and Exchange Commission (Release No. 34-106158; File No. SR-ISE-2026-46). The filing, published in the Federal Register on August 18, 2026, is effective immediately under Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4.

The amendment revises the Exchange's Rules at Options 7, Section 4 (Complex Order Fees and Rebates) and Section 6 (Other Options Fees and Rebates). It updates the tiered rebate schedule for "Select Symbols" - options on securities in the Penny Interval Program - and "Non-Select Symbols," which comprise all other listed options.

The notice lists tiered priority-customer rebates ranging from ($0.25) to ($0.59) per contract for select symbols and from ($0.50) to ($1.16) per contract for non-select symbols, based on the member's complex-order volume as a percentage of total customer consolidated volume. Rebate amounts are reduced by $0.20 per contract when the largest leg of a select-symbol order is under fifty contracts and trades on the regular order book; no rebates apply for larger legs or for non-select symbols that trade on the regular book.

In addition, the Exchange proposes supplemental tiered rebates for members that transact an average daily volume of more than 10,000 FLEX contracts in a month. Those supplemental rebates for select symbols range from ($0.00) to (0.06) per contract, per leg, and are calculated on aggregated volume from affiliated members and entities.

The full text of the proposed rule change is available on Nasdaq ISE's website and at the Exchange's principal office. Interested parties may submit comments to the Commission in accordance with standard procedures.