Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule General 8 Regarding Intrafirm Cabinet Connectivity

[Federal Register Volume 91, Number 110 (Tuesday, June 9, 2026)]

[Notices]

[Pages 34849-34852]

From the Federal Register Online via the Government Publishing Office [ www.gpo.gov ]

[FR Doc No: 2026-11482]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-105613; File No. SR-NASDAQ-2026-046]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;

Notice of Filing and Immediate Effectiveness of Proposed Rule Change To

Amend Rule General 8 Regarding Intrafirm Cabinet Connectivity

June 4, 2026.

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that

on May 22, 2026, The Nasdaq Stock Market LLC (``Nasdaq'' or

``Exchange'') filed with the Securities and Exchange Commission

(``Commission'') the proposed rule change as described in Items I, II,

and III, below, which Items have been prepared by the Exchange. The

Commission is publishing this notice to solicit comments on the

proposed rule change from interested persons.

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\1\ 15 U.S.C. 78s(b)(1).

\2\ 17 CFR 240.19b-4.

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I. Self-Regulatory Organization's Statement of the Terms of Substance

of the Proposed Rule Change

The Exchange proposes to amend Rule General 8, Section 1 to

expressly list non-contiguous intrafirm cabinet connectivity as a

subset of Fiber \3\ connectivity under Rule General 8, Section 1(b),

and amend the fees applicable to such service, as described below.

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\3\ See Rule General 8, Section 1(b).

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The text of the proposed rule change is available on the Exchange's

website at https://listingcenter.nasdaq.com/rulebook/nasdaq/rulefilings , and at the principal office of the Exchange.

II. Self-Regulatory Organization's Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, the Exchange included statements

concerning the purpose of and basis for the proposed rule change and

discussed any comments it received on the proposed rule change. The

text of these statements may be examined at the places specified in

Item IV below. The Exchange has prepared summaries, set forth in

sections A, B, and C below, of the most significant aspects of such

statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule Change

1. Purpose

The Exchange proposes to amend Rule General 8, Section 1 to

expressly list non-contiguous intrafirm cabinet connectivity as a

subset of Fiber \4\ connectivity under Rule General 8, Section 1(b),

and amend the fees applicable to such service, as described below.

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\4\ See Rule General 8, Section 1(b).

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Background--Intrafirm Cabinet Connectivity Service

The Exchange offers non-contiguous intrafirm cabinet connectivity

services consisting of cross connections linking a customer's cabinet

to another non-contiguous or non-adjacent \5\ cabinet, where all such

cabinets are licensed to the same customer. By contrast, cabling

between contiguous or adjacent cabinets licensed to the same customer,

where the connection does not traverse shared data center space, is

generally customer-directed and is not offered by the Exchange as a

standalone connectivity service.

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\5\ For purposes of this proposal, the Exchange distinguishes

between cabling that remains wholly within adjacent customer

cabinets and does not traverse shared data center space and cabling

that traverses shared data center space. The latter implicates

common pathways and Exchange-managed infrastructure and is therefore

treated as non-contiguous. The Exchange, however, exercises (and

will continue to exercise) supervisory oversight over the relevant

data center space and the conditions under which such cabling may be

installed, maintained, and accessed, consistent with its

responsibility for the operation and integrity of its facilities.

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With respect to non-contiguous intrafirm cabinet connectivity,

today customers can order such services as a standard Fiber connection

under Rule General 8, Section 1(b) for an installation fee of $550 and

no ongoing monthly fee. Alternatively, customers can choose a custom

installation for an installation-specific price as provided in the

Custom Installation provision under Rule General 8, Section 1(d).

With respect to contiguous cabling between adjacent cabinets

licensed to the same customer, the cabling arrangement is generally

customer-directed and may be implemented by the customer or by third

parties at the customer's expense. The Exchange does not offer

contiguous intrafirm cabinet connectivity as a standalone connectivity

service and does not assess a recurring fee for such customer-directed

arrangements. If requested by the customer, however, the Exchange may

provide installation assistance or furnish cabling on an ancillary

basis under the Custom Installation provision of Rule General 8,

Section 1(d).

Proposed Rule Change

The Exchange now proposes to amend Rule General 8 to expressly list

non-contiguous intrafirm cabinet connectivity as a subset of Fiber \6\

connectivity under Rule General 8, Section 1(b). To effect this change,

the Exchange proposes to amend Rule General 8 to (1) explicitly list

``Intrafirm Cabinet Connectivity'' as a subset of Fiber connectivity

under that subsection; and (2) eliminate the availability of non-

contiguous intrafirm cabinet connectivity under Rule General 8, Section

1(d). Thus, as proposed, customers would no longer have the option of

selecting intrafirm cabinet connectivity under Rule General 8, Section

1(d).

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\6\ See Rule General 8, Section 1(b).

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As discussed above, the availability of non-contiguous intrafirm

cabinet connectivity under Rule General 8 is not new. Rather, that

service has long been available, whether as a subset of Fiber under

Rule General 8, Section 1(b), or as part of the broader Custom

Installation offering under Section 1(d) of that Rule. The Exchange now

proposes to list that service expressly within the Fiber connectivity

provisions of Rule General 8, Section 1(b), thereby providing greater

transparency regarding the service's availability and applicable

pricing within the Exchange's connectivity fee schedule. As noted

above, customers would no longer have the option of selecting

installation for non-contiguous intrafirm cabinet connectivity under

Rule General 8, Section 1(d).

As proposed, non-contiguous intrafirm cabinet connectivity within

the Exchange's data center halls would be administered directly by the

[[Page 34850]]

Exchange.\7\ As part of the Exchange's continuing efforts to enhance

the integrity of its data center operations and as of approximately the

second quarter of 2026, all non-contiguous intrafirm cabinet

connectivity will be furnished, monitored, and managed by the Exchange,

as discussed below. As proposed, and in connection with the Exchange's

ongoing investments in, and standardization of, its data center

connectivity infrastructure, the Exchange will supply, inventory, and

audit the fiber used for non-contiguous intrafirm cabinet connectivity

within the Exchange's data center halls. Consistent with that approach,

all data center customers seeking non-contiguous intrafirm cabinet

connectivity would be required to obtain that connectivity from the

Exchange, and third parties would no longer be permitted to provide

intrafirm cabinet fiber connectivity within the Exchange's data center

halls.

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\7\ By contrast, the provision of contiguous cabling between

adjacent cabinets licensed to the same customer would remain

generally customer-directed and would not constitute an Exchange

connectivity offering, other than to the extent a customer requests

ancillary installation assistance or cabling through the Custom

Installation service under Rule General 8, Section 1(d). The

Exchange would, however, continue to exercise supervisory oversight

over the relevant data center space and the conditions under which

such cabling may be installed, maintained, and accessed, consistent

with its responsibility for the operation and integrity of its

facilities.

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The proposal would enhance the integrity of the Exchange's systems

by reducing dependence on third-party provided intrafirm cabinet fiber

within the Exchange's data center halls and instead placing those

connectivity components under Nasdaq's direct administration. This

would provide the Exchange with greater end-to-end oversight of the

relevant connectivity infrastructure, including how it is furnished,

tracked, audited, and maintained. The Exchange believes that such

oversight strengthens controls around the physical environment

supporting access and connectivity, improves auditability and

troubleshooting, and promotes consistent operational standards across

the data center campus.

Amended Fees for Intrafirm Cabinet Connectivity

The Exchange next proposes to amend the fees applicable to non-

contiguous intrafirm cabinet connectivity. As discussed above, with

respect to non-contiguous intrafirm cabinet connectivity, today

customers can order such services as a standard Fiber connection under

Rule General 8, Section 1(b) for an installation fee of $550 and no

ongoing monthly fee. Alternatively, customers can choose a custom

installation for an installation-specific price as provided under the

Custom Installation provision under Rule General 8, Section 1(d).

The Exchange now proposes to restructure and amend the fees for

such service. Specifically, the Exchange proposes to charge an ongoing

monthly fee of $385.00 for a single non-contiguous intrafirm cabinet

cross-connect. For customers seeking multiple cross-connects, the

Exchange would offer bundled monthly pricing of $450.00 for 6 cross-

connects, $540.00 for 12 cross-connects, $630.00 for 18 cross-connects,

and $720.00 for 24 cross-connects.\8\ The Exchange would not charge an

installation fee for the service. As proposed, customers would no

longer have the option of ordering such service under Rule General 8,

Section 1(d).

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\8\ To effectuate these changes, the Exchange proposes to amend

Rule General 8, Section 1(b) as follows. First, the Exchange would

insert, immediately after the bullet titled ``TNO Cross Connect,'' a

new bullet titled ``Intrafirm Cabinet Connectivity.'' Second, the

Exchange proposes to insert a note designated with a triple asterisk

(``* * *'') adjacent to that description, together with its

accompanying note text to read as follows: ``Applicable only to non-

contiguous, same-customer-licensed intrafirm-cabinet connectivity

that traverses shared data center space; not applicable to

contiguous, same-customer-licensed intrafirm-cabinet connectivity

that does not traverse shared data center space.'' Third, the

Exchange would insert, where the column titled ``Installation Fee''

intersects the description of the proposed Intrafirm Cabinet

Connectivity, the figure ``$0''. Finally, the Exchange would insert,

where the column titled ``Ongoing Monthly Fee'' intersects the

description of the proposed service, the various offerings for 1 and

up to 24 cross-connects, including their associated fees, as

described herein. The Exchange believes these proposed changes are

appropriate to reflect that non-contiguous Intrafirm Cabinet

connectivity would be expressly identified under Section 1(b) of

Rule General 8, as proposed, and to conform Section 1(b) of that

Rule accordingly. See proposed Rule General 8.

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The Exchange is proposing no other changes to Rule General 8.

The Exchange believes that the proposed fees are reasonable because

they reflect the Exchange's investment in, and ongoing provision,

auditing, administration, and maintenance of, the fiber and related

infrastructure necessary to provide non-contiguous intrafirm cabinet

connectivity within the Exchange's data center campus. The Exchange

also believes that the proposed fees are reasonable because they

compare favorably to the fees charged by another national securities

exchange for a similar connectivity offering. As discussed below, the

Exchange's proposed monthly fees are lower than those charged by the

New York Stock Exchange (``NYSE'') at each comparable service level,

and the Exchange would not charge any installation fee for the service.

The Exchange believes that this comparison provides an objective

external benchmark supporting the reasonableness of the proposed fee

levels.

Specifically, NYSE offers Data Center Fiber Cross Connect \9\ and

charges a $500 initial charge plus a $600 monthly charge for a single

cross-connect. For a bundle of six cross-connects, NYSE charges a $500

initial charge plus a $1,800 monthly charge. For a bundle of 12 cross-

connects, NYSE charges a $500 initial charge plus a $3,000 monthly

charge. For a bundle of 24 cross-connects, NYSE charges a $500 initial

charge plus a $4,680 monthly charge.

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\9\ See New York Stock Exchange LLC, Connectivity Fee Schedule

(Mar. 27, 2026) (setting forth fees for Data Center Fiber Cross

Connect), available at https://www.nyse.com/publicdocs/nyse/Wireless_Connectivity_Fees_and_Charges.pdf .

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By comparison, the Exchange proposes to charge no installation fee

and lower monthly fees at each comparable service level. For a single

cross-connect, the Exchange's proposed monthly fee of $385.00 is

$215.00 lower than NYSE's $600.00 monthly fee, and the Exchange would

not charge NYSE's $500 initial fee. For a bundle of six cross-connects,

the Exchange's proposed monthly fee of $450.00 is $1,350.00 lower than

NYSE's $1,800.00 monthly fee, again with no installation fee. For a

bundle of 12 cross-connects, the Exchange's proposed monthly fee of

$540.00 is $2,460.00 lower than NYSE's $3,000.00 monthly fee, also with

no installation fee. For a bundle of 24 cross-connects, the Exchange's

proposed monthly fee of $720.00 is $3,960.00 lower than NYSE's

$4,680.00 monthly fee, likewise with no installation fee. The Exchange

believes that this comparison demonstrates that its proposed fees are

materially lower than the fees charged by another national securities

exchange for a similar connectivity service, thereby supporting the

reasonableness of the proposed fee levels.

Implementation

The Exchange proposes to implement the proposed changes on or about

the second quarter of 2026. The Exchange will announce the specific

implementation date via Nasdaq's Customer Portal.

2. Statutory Basis

The Exchange believes that its proposal is consistent with Section

6(b)

[[Page 34851]]

of the Act,\10\ in general, and furthers the objectives of Sections

6(b)(4) and 6(b)(5) of the Act,\11\ in particular, because it provides

for the equitable allocation of reasonable dues, fees, and other

charges among members, issuers, and other persons using Exchange

facilities, and is not designed to permit unfair discrimination between

customers, issuers, brokers, or dealers.

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\10\ 15 U.S.C. 78f(b).

\11\ 15 U.S.C. 78f(b)(4) and (5).

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The Exchange believes that the proposed fees for non-contiguous

intrafirm cabinet connectivity are reasonable because they reflect the

Exchange's investment in, and ongoing provision, auditing,

administration, and maintenance of, the fiber and related

infrastructure necessary to provide that connectivity within the

Exchange's data center campus. As discussed above, the Exchange is

standardizing and directly administering this connectivity service as

part of its broader efforts to enhance the integrity, consistency, and

oversight of its data center infrastructure. The Exchange believes it

is reasonable to assess fees designed to recover a portion of the costs

associated with furnishing, inventorying, auditing, and maintaining the

infrastructure used to provide the service.

The Exchange also believes that the proposed fees are reasonable

because they compare favorably to the fees charged by another national

securities exchange for a similar connectivity offering. As discussed

above, NYSE charges a $500 initial fee plus a $600 monthly fee for a

single Data Center Fiber Cross Connect, as well as substantially higher

monthly fees for bundled options, whereas the Exchange would charge no

installation fee and lower monthly fees at each comparable service

level. The Exchange believes that NYSE's pricing for a similar

connectivity offering provides a useful external benchmark supporting

the conclusion that the proposed fees are reasonable.

The Exchange further believes that the proposed fees represent an

equitable allocation of reasonable fees and are not unfairly

discriminatory because they would apply uniformly to all similarly

situated customers that obtain non-contiguous intrafirm cabinet

connectivity. As discussed above, all Exchange data center customers

seeking non-contiguous intrafirm cabinet connectivity services would

have to obtain such service directly from the Exchange. Thus, all

customers seeking that service would be subject to the same fee

schedule, and each bundled option would be available on equal terms to

any customer that elects the relevant service level. To the extent the

proposal provides different pricing based on the number of cross-

connects purchased, that distinction is based solely on volume and

would apply equally to all customers.

The Exchange also believes that the proposal to identify non-

contiguous intrafirm cabinet connectivity expressly within Rule General

8, Section 1(b) is consistent with the Act because it would make the

Exchange's fee schedule clearer and more transparent by expressly

listing a service that has long been available as part of the

Exchange's connectivity offerings. The proposal would thus make the

schedule more informative for customers seeking connectivity services

within the Exchange's data center campus.

Finally, the Exchange does not believe that the proposal is

designed to permit unfair discrimination because the service is offered

to customers that require connectivity between their own cabinets

within the Exchange's data center campus, and the proposed fees would

apply uniformly to all such customers. Customers that do not require

the service would not be charged the fee, and customers that do require

the service would be charged on the same terms.

B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will

impose any burden on competition that is not necessary or appropriate

in furtherance of the purposes of the Act. The proposed fees would

apply uniformly to all customers that request non-contiguous intrafirm

cabinet connectivity. The Exchange recognizes that, under the proposal,

customers seeking non-contiguous intrafirm cabinet connectivity within

the Exchange's data center halls would be required to obtain that fiber

connectivity from Nasdaq, and third parties would no longer be

permitted to provide such non-contiguous intrafirm cabinet fiber

connectivity within the Exchange's data center halls. The Exchange

believes that any resulting impact on competition is necessary and

appropriate in furtherance of the purposes of the Act because the

requirement is designed to support a standardized, centrally

administered, monitored, and auditable connectivity environment within

the Exchange's data center campus. The Exchange believes that

administering this connectivity directly would improve its ability to

inventory, maintain, troubleshoot, and monitor the relevant fiber

infrastructure, thereby promoting reliability and operational

integrity.

The Exchange also does not believe that the proposed fees would

impose an undue burden on competition among customers because the fees

would apply on an equal basis to all similarly situated customers and

are lower than fees charged by NYSE for a comparable connectivity

offering. The Exchange believes that the proposed service is

substantively comparable to the NYSE offering used for comparison

purposes and therefore believes that the comparison supports the

conclusion that the proposed fee levels are within a reasonable range

and are not unduly burdensome for customers that purchase the service.

C. Self-Regulatory Organization's Statement on Comments on the Proposed

Rule Change Received From Members, Participants, or Others

No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for

Commission Action

The foregoing rule change has become effective pursuant to Section

19(b)(3)(A)(ii) of the Act.\12\

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\12\ 15 U.S.C. 78s(b)(3)(A)(ii).

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At any time within 60 days of the filing of the proposed rule

change, the Commission summarily may temporarily suspend such rule

change if it appears to the Commission that such action is: (i)

necessary or appropriate in the public interest; (ii) for the

protection of investors; or (iii) otherwise in furtherance of the

purposes of the Act. If the Commission takes such action, the

Commission shall institute proceedings to determine whether the

proposed rule should be approved or disapproved.

IV. Solicitation of Comments

Interested persons are invited to submit written data, views and

arguments concerning the foregoing, including whether the proposed rule

change is consistent with the Act. Comments may be submitted by any of

the following methods:

Electronic Comments

Use the Commission's internet comment form ( https://www.sec.gov/rules/sro.shtml ); or

Send an email to [email protected] . Please include

file number SR-NASDAQ-2026-046 on the subject line.

Paper Comments

Send paper comments in triplicate to Secretary, Securities

and Exchange

[[Page 34852]]

Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to file number SR-NASDAQ-2026-046.

This file number should be included on the subject line if email is

used. To help the Commission process and review your comments more

efficiently, please use only one method. The Commission will post all

comments on the Commission's internet website ( https://www.sec.gov/rules/sro.shtml ). Copies of the filing will be available for inspection

and copying at the principal office of the Exchange. Do not include

personal identifiable information in submissions; you should submit

only information that you wish to make available publicly. We may

redact in part or withhold entirely from publication submitted material

that is obscene or subject to copyright protection. All submissions

should refer to file number SR-NASDAQ-2026-046 and should be submitted

on or before June 30, 2026.

For the Commission, by the Division of Trading and Markets,

pursuant to delegated authority.\13\

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\13\ 17 CFR 200.30-3(a)(12).

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Sherry R. Haywood,

Assistant Secretary.

[FR Doc. 2026-11482 Filed 6-8-26; 8:45 am]

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