FR 2025-02388

Nasdaq BX, Inc. has proposed delaying the implementation of a new Options Regulatory Fee (ORF) following a prior amendment. The initial plan was to have this new fee structure and methodology activate sooner; however, it is now scheduled to begin on June 1, 2025, and will cease on December 1, 2025. The Securities and Exchange Commission (SEC) has been notified about this delay, and the proposal was filed for immediate effectiveness. The public has an opportunity to comment on this matter until March 3, 2025.

Summary of the Document

This document pertains to a regulatory action filed by Nasdaq BX, Inc. concerning the postponement of a new ORF and its associated methodology. Initially proposed to start at an earlier date, this change will now take effect mid-year, running through the beginning of December. The SEC has published this notice not only to inform the public but also to encourage comments from interested individuals or groups. Both Nasdaq BX and the SEC have made the proposals available for public access on their respective websites.

Significant Issues and Concerns

While the document clearly states the delay, it lacks a detailed explanation for why this deferment is necessary. Such omissions can raise questions about transparency and the motivations behind the decision. This lack of clarity might lead to skepticism among stakeholders about the reasons for postponing the fee implementation.

Furthermore, the technical and legal language used might be challenging for those without prior experience in securities regulation or financial markets. References to specific sections of the Securities Exchange Act and Code of Federal Regulations could hinder comprehension for the general public, potentially limiting engagement and understanding.

Potential Impacts on the Public and Stakeholders

Impact on the Public Broadly

For the general public, particularly those interested in or affected by securities regulations, the delay might seem like a minor technical adjustment. However, since options trading and regulatory fees can affect market behavior, investors may notice indirect impacts. This delay might influence trading costs or market dynamics temporarily, depending on how the ORF is ultimately applied and enforced.

Impact on Specific Stakeholders

For brokers, traders, and firms directly involved in options trading, the deferral of the new ORF could bring about both positive and negative effects. Positively, the delay provides additional time to adjust to new fee structures and adapt internal systems accordingly. On the downside, if stakeholders had already started preparing for the initial implementation timeline, they may face inconveniences or financial implications due to the unexpected change in schedule.

Without a comprehensive overview of the previous proposals (e.g., SR-BX-2024-054 and SR-BX-2025-004), it is also difficult to assess the cumulative impact of this and related adjustments. Stakeholders might find it challenging to provide fully informed feedback given the absence of context regarding these prior filings.

Conclusion

The proposal to delay the ORF’s implementation by Nasdaq BX introduces potential implications for market participants. While it offers more time for adaptation, it raises transparency issues due to the lack of clear reasoning behind the delay. The general public may have limited ability to assess these changes fully due to the complex regulatory language and absence of detailed explanations. This document highlights the importance of clear communication and consideration of stakeholder impacts in regulatory processes. Comments and feedback from the public are invited but may be constrained by the current presentation of information.