2024-16547. Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend MRX's Options 7

Penny Symbols

Market participant	Fee for crossing orders 1	Fee for responses to crossing orders 2
Market Maker 4	$0.20	$0.50
Non-Nasdaq MRX Market Maker (FarMM)	0.20	0.50
Firm Proprietary/Broker-Dealer	0.20	0.50
Professional Customer	0.20	0.50
Priority Customer	0.00	0.50

Non-Penny Symbols

Market participant	Fee for crossing orders 1	Fee for responses to crossing orders 2
Market Maker 4	$0.20	$1.10
Non-Nasdaq MRX Market Maker (FarMM)	0.20	1.10
Firm Proprietary/Broker-Dealer	0.20	1.10
Professional Customer	0.20	1.10
Priority Customer	0.00	1.10

The Exchange proposes to amend the title of Options 7, Section 3 from “Regular Order Fees and Rebates” to “Fees and Rebates for Regular Orders and All Crossing Orders” to account for the inclusion of certain Complex Order crossing order fees. The Exchange proposes to add a title to Options 7, Section 3, Table 2, “Regular and Complex Crossing Orders” with a new note 3. Proposed note 3 of Options 7, Section 3 would provide that the Table 2 fees apply to Regular and Complex orders entered into the Facilitation Mechanism; the Solicited Order Mechanism; the Block Order Mechanism ^[9] as applicable; QCC Orders; Complex QCC Orders; QCC with Stock Orders; and Complex QCC with Stock Orders.

The Exchange proposes to amend Table 2 which consists of the Fee for Crossing Orders.^[10] The Exchange proposes to decrease the Penny Symbol Non-Priority Customer ^[11] Fees for Crossing Orders from $0.20 per contract to $0.02 per contract for orders in the Facilitation Mechanism, Solicitation Mechanism and Block Orders. A Priority Customer would continue to be assessed no Fee for Crossing Orders in Penny Symbols. The Exchange is proposing to carve out pricing for QCC Orders, Complex QCC Orders, QCC with Stock Orders and Complex QCC with Stock Orders, in addition to PIM Orders which are already carved out from the fees that apply to the originating and contra-side orders in Table 2. The Exchange proposes to amend note 1 of Options 7, Section 3, Table 2 to provide,

Fees apply to the originating and contra-side orders, except for PIM Orders and Qualified Contingent Cross (“QCC”) Orders, Complex QCC Orders, QCC with Stock Orders and Complex QCC with Stock Orders. The Fee for Crossing Orders for QCC Orders, Complex QCC Orders, QCC with Stock Orders and Complex QCC with Stock Orders is $0.20 per contract for Non-Priority Customer orders in Penny and Non-Penny Symbols. Priority Customer orders are not assessed a fee for Crossing Orders. Regular and Complex PIM Orders are subject to separate pricing in Part A below.

The Exchange would continue to assess Non-Priority Customer QCC Orders and QCC with Stock Orders the same $0.20 per contract Fee for Crossing Orders in Penny Symbols as today and would continue to assess Priority Customers no Fee for Crossing Orders in Penny and Non-Penny Symbols. There are no Fees for Responses to Crossing Orders for QCC Orders and QCC with Stock Orders.^[12] The Exchange is not amending the Non-Penny Fees for Crossing Orders in Options 7, Section 3, Table 2.

With this proposal, the Exchange would assess Complex QCC Orders and Complex QCC with Stock Orders the same Fees for Crossing Orders as QCC Orders and QCC with Stock Orders.^[13] Specifically, Complex QCC Orders and Complex QCC with Stock Orders would be assessed a $0.20 per contract Fee for Crossing Orders to Non-Priority Customers in Penny and Non-Penny Symbols. Priority Customers would not be assessed a Fee for Crossing Orders. Complex QCC Orders and Complex QCC with Stock Orders would be subject to lower Penny Symbol fees and slightly higher Non-Penny Fees for Crossing Orders. Today, Options 7, Section 4 assesses a $0.35 per contract Penny Symbol to all Non-Priority Customer Orders and an $0.85 per contract Non-Penny Symbol fee to all Members for Complex QCC Orders and Complex QCC with Stock Orders.

Additionally, the Exchange proposes to assess the Options 7, Section 3, Table 2 fees to orders entered into the Complex Facilitation Mechanism and Complex Solicitation Mechanism in addition to Regular Orders entered into these mechanisms. The Exchange would assess orders entered into the Complex Facilitation Mechanism and Complex Solicitation Mechanism the proposed reduced $0.02 per contract Fee for Crossing Orders in Penny Symbols and $0.20 per contract for Non-Penny Symbols and would assess Priority Customers no Fee for Crossing Orders in Penny and Non-Penny Symbols. The Exchange would also assess orders entered into the Complex Facilitation Mechanism and Complex Solicitation Mechanism a $0.50 Fee for Responses to Crossing Orders to all Members for Penny Symbols and a $1.10 Fee for Responses to Crossing Orders to all Members in Non-Penny Symbols. This pricing would be in lieu of the Complex Order pricing in Options 7, Section 4. As noted above, today, Options 7, Section 4 assesses a $0.35 per contract Penny Symbol to all Non-Priority Customer Orders and an $0.85 per contract Non-Penny Symbol fee to all Members for orders entered into the Complex Facilitation Mechanism and Complex Solicitation Mechanism. The proposed pricing for the Complex Facilitation Mechanism and Complex Solicitation Mechanism would be subject to the same pricing as the Regular Facilitation Mechanism and Solicited Order Mechanism. The Exchange believes that the pricing in Options 7, Section 4, Table 2 will incentivize Members to utilize these mechanisms.

The Exchange also proposes to define a Non-Priority Customer in Options 7, Section 1. Specifically, the Exchange proposes to state, “Non-Priority Customers” include Market Makers, Non-Nasdaq MRX Market Makers (FarMMs), Firm Proprietary/Broker-Dealers, and Professional Customers.”

The Exchange proposes to amend notes 1 and 2 of Options 7, Section 3, Table 2 to add the words “and Complex” with respect to PIM Orders to make clear that, all PIM Orders, Regular and Complex, would be subject to the Part A pricing in Options 7, Section 3. As a result of this amendment, there is no pricing change for Regular and Complex PIM Orders.

The Exchange also proposes a Penny Symbol Break-Up Rebate for Regular and Complex Orders entered into the Exchange's Facilitation Mechanism and Solicited Order Mechanism for Priority Customers of $0.30 per contract. Today, orders entered into the Complex Facilitation Mechanism and the Complex Solicited Order Mechanism are not offered a Break-Up Rebate. The Exchange believes that the new Priority Customer Break-up Rebate will attract MRX Members to utilize the Exchange's Facilitation Mechanism and Solicited Order Mechanism for both Regular and Complex Orders. The Exchange proposes to add a new note 5 in Options 7, Section 3, Table 2 that provides that break-up rebates are provided for an originating Priority Customer Regular or Complex order entered into the Facilitation Mechanism or Solicited Order Mechanism that executes with any response (order or quote) other than the contra-side order.

Options 7, Section 3—Table 3

Currently, Options 7, Section 3, Table 3 contains the Qualifying Tier Thresholds for Tier 1 through Tier 4 pricing. Specifically, today, market participants are charged the applicable tier maker/taker fees (or are eligible for rebates) if they meet the applicable tier thresholds based on Total Affiliated Member or Affiliated Entity ADV ^[14] in Table 3 of Options 7, Section 3. Market Makers may also alternatively qualify for these fees if they meet the applicable tier thresholds based on Total Market Maker ADV.^[15]

Qualifying Tier Thresholds

Tiers	Total affiliated member or affiliated entity ADV	OR	Total market maker ADV
Tier 1	executes 0.00% to less than 0.75% of Customer Total Consolidated Volume		executes up to 0.10% of Customer Total Consolidated Volume which adds liquidity in Regular Orders.
Tier 2	executes 0.75% to less than 1.50% of Customer Total Consolidated Volume		executes more than 0.10% and up to 0.25% of Customer Total Consolidated Volume which adds liquidity in Regular Orders.
Tier 3	executes 1.50% to less than 2.25% of Customer Total Consolidated Volume		executes more than 0.25% and up to 0.45% of Customer Total Consolidated Volume which adds liquidity in Regular Orders.
Tier 4	executes 2.25% or more of Customer Total Consolidated Volume		executes more than 0.45% of Customer Total Consolidated Volume which adds liquidity in Regular Orders.