Nasdaq ISE removes cross-market speed bump and kill switch functionality

On October 13, 2026, Nasdaq ISE, LLC filed a proposed rule change with the Securities and Exchange Commission under Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4. The filing, identified as Release No. 34-106651; File No. SR-ISE-2026-54, appears in the Federal Register, Volume 91, Number 199, pages 65831-65833.

The proposal 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 amendments would delete the language that permits Market Makers to apply the MWSB and Members to apply the Kill Switch across both ISE and its affiliate, Nasdaq GEMX, LLC, thereby limiting these risk-management tools to a per-exchange basis. Nasdaq GEMX will file a companion rule change to make conforming amendments.

The Exchange will announce the operative date of the change in an Options Trader Alert and will implement the amendment on or before Q2 2027. After implementation, all Market Makers and Members will configure separate MWSB parameters and Kill Switch requests for each Nasdaq affiliated options exchange on which they are authorized to trade.

The Exchange cites Section 6(b) of the Act and Section 6(b)(5) as the statutory basis, stating that the harmonization promotes consistent, transparent, and predictable risk-management functionality and supports the objectives of a free and open market and a national market system.