Notice

Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Introduce TNO Cross Connect, a Colocation Telecommunications Carrier Connectivity Service

A Notice by the Securities and Exchange Commission on 03/19/2026

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• Public Inspection Published Document: 2026-05344 (91 FR 13371) Document Headings ###### Securities and Exchange Commission

1. Release No. 34-105014; File No. SR-NASDAQ-2026-014 March 16, 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 March 3, 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 and II 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.

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

The Exchange proposes to introduce “TNO Cross Connect,” a telecommunications network operator (telco” or “TNO”) connectivity service, throughout its data center campus. The Exchange will submit a separate filing to establish fees for the service proposed herein.

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 introduce “TNO Cross Connect,” a telecommunications network operator 3 connectivity service, throughout its data center campus. The Exchange will submit a separate filing to establish fees for the service proposed herein.

Background

The Exchange's data center campus consists of the original data center (“NY11”), an expansion area (“NY11-4”), and a future expansion area (“NY11-5”). In a data center, a telco provider operates within a physical network infrastructure that enables external connectivity for data center customers, transporting customer data into and out of the facility through equipment the telco maintains onsite. In this role, the telco provides network services that allow customers to reach their broader networks by providing telecommunications access to external destinations.

Data Center Telco Connectivity

Throughout the Exchange's data center, including as retrofitted in NY11, [4 ] telco connectivity is implemented using Nasdaq-managed infrastructure [5 ] in which each telco connectivity proceeds from the telco carrier cage [6 ] cabinet patch panel [7 ] through Nasdaq-provided cabling to a Nasdaq-managed distribution point. [8 ] From there, additional Nasdaq-provided cabling connects the telco to the customer client cabinet patch panel. [9 ] All telco connectivity in the expansion areas and as scheduled to be retrofitted in NY11 follows this standardized route. [10 ]

TNO Cross Connect

The Exchange is now proposing to add to its fee schedule in Rule General 8, Section 1(b) a specified component of the telco-to-customer connectivity path and offer that component as a connectivity offering as described herein. [11 ] As proposed, the TNO Cross ( printed page 13372) Connect [12 ] would consist solely of the cabling that runs from the telco's carrier cabinet through to the Nasdaq-provided distribution point. [13 ] The proposed service would not include the downstream customer-facing connectivity from the Nasdaq-provided distribution point to the customer client cabinet. As proposed, all TNOs seeking to connect with Nasdaq data center clients anywhere inside the data center campus will be required to interface through TNO Cross Connect thus enhancing the consistency of connectivity architecture inside the data center. The TNO Cross Connect would thus promote the integrity and transparency of telco connectivity inside the data center campus and support Nasdaq's ability to provide consistent oversight and maintenance of that connectivity. The Exchange notes that the New York Stock Exchange (NYSE) offers a comparable service at an established fee. [14 ] The Exchange will submit a filing proposing to establish fees for the TNO Cross Connect service proposed herein.

Impact of the Proposed Changes

The proposed TNO Cross Connect service is specific to TNOs and will be available to all TNOs on an equal basis. As proposed, all TNOs seeking to connect with Nasdaq data center clients anywhere inside the data center campus will be required to interface through TNO Cross Connect thus enhancing the consistency of connectivity architecture inside the data center. The proposed changes are not otherwise intended to address any other items relating to the Exchange's data center campus.

Implementation

The Exchange proposes to offer TNO Cross Connect throughout its data center campus. Although projected dates are subject to change, the Exchange anticipates launching the TNO Cross Connect offering during the second quarter of 2026.

2. Statutory Basis

The Exchange believes that its proposal is consistent with Section 6(b) of the Act, [15 ] in general, and furthers the objectives of Section 6(b)(5) of the Act, [16 ] in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest.

As described above, the proposal provides for a defined and Exchange-managed connectivity pathway—the TNO Cross Connect—running from the telco carrier cage to the Nasdaq-managed distribution point. Through this structure, all TNOs interface with the Exchange's infrastructure through a uniformly administered, and auditable pathway, which in turn enhances the operational integrity and reliability of connectivity throughout the interior of the Exchange's data center campus. By establishing a standardized, Nasdaq-managed connectivity path in which the Exchange oversees the cabling, demarcation points, and supporting architecture, the proposal enhances Nasdaq's ability to monitor, maintain, and audit this connectivity. Implementing the proposed TNO Cross Connect thus enhances the integrity of connectivity within the Exchange's data center campus as well as Nasdaq's ability to implement, oversee, maintain, and manage that connectivity. As discussed above, other exchanges offer comparable telco carrier connectivity services at established fees. [17 ]

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 not necessary or appropriate in furtherance of the purposes of the Act.

Nothing in the proposal imposes any burden on the ability of other exchanges to compete. The Exchange operates in a highly competitive market in which exchanges and other vendors offer colocation services to facilitate the trading and other market activities of those market participants who believe that colocation enhances the efficiency of their operations. As discussed above, other exchanges offer comparable telecommunication carrier connectivity services at established fees.

Nothing in the proposal burdens intra-market competition because the TNO Cross Connect will be available to any TNO who wishes to offer its services to the Exchange's data center customers on a non-discriminatory basis and each TNO who wants to offer its services to Nasdaq customers will be subject to the same requirements. As discussed above, any TNO that seeks to provide telecommunications services to Nasdaq's data center customers must use the proposed TNO Cross Connect. This requirement ensures that all TNOs interface with Nasdaq's infrastructure through a uniform, Exchange-managed connectivity path, which enhances the integrity, transparency, and consistency of connectivity throughout the data center campus. Requiring TNOs to use this Exchange-administered pathway does not restrict competition among TNOs; each TNO remains free to determine whether to offer its services to Nasdaq colocation customers and to compete with other TNOs on the basis of price and service quality. The proposal merely ensures that, if a TNO chooses to do business with Nasdaq customers, the TNO must connect through the TNO Cross Connect, which serves as the standardized, regulated point of access. Accordingly, the proposal does not impose any burden on inter-market or intra-market competition that is not necessary or appropriate under the Act.

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. ( printed page 13373)

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)(iii) [18 ] of the Act and Rule 19b-4(f)(6) thereunder [19 ] in that it effects a change that: (i) does not significantly affect the protection of investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) by its terms, does not become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest.

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 necessary or appropriate in the public interest, for the protection of investors, or 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 rule-comments@sec.gov. Please include file number SR-NASDAQ-2026-014 on the subject line.

Paper Comments

• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to file number SR-NASDAQ-2026-014. 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-2026-014 and should be submitted on or before April 9, 2026.

For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. [20 ]

Sherry R. Haywood,

Assistant Secretary.

Footnotes

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

Back to Citation 2. 17 CFR 240.19b-4.

Back to Citation 3.

                     For purposes of this proposal, a Telecommunication Network Operator (TNO) means a provider of telecommunications carrier services that, owns, controls, or has the appropriate rights to use, the infrastructure necessary to sell and/or deliver telecommunications carrier services.

Back to Citation 4.

                     The Exchange is undertaking a campus-wide project to implement equidistant telco connectivity within and among its original data center hall and expansion areas (“Equalization Project”). As part of this initiative, the original data center hall, NY11, is being retrofitted with equalized cabling and updated infrastructure. This model reflects Nasdaq's efforts to enhance the integrity of its data center networks by establishing standardized connectivity requirements for each component of the telco-to-customer connectivity path and exercising greater management oversight over its components. 
                    See 
                     Securities Exchange Act Release No. 34-101078 (Sept. 18, 2024), [89 FR 77937](https://www.federalregister.gov/citation/89-FR-77937) (Sept. 24, 2024) (SR-NASDAQ-2024-054) (discussing the Equalization Project in greater detail).

Back to Citation 5.

                     In data center halls NY11-4, NY11-5 and (as retrofitted in) NY11, cabling from the telco carrier cabinet to the Nasdaq-provided distribution point and onward to the customer cabinet is provided and managed by Nasdaq. All such connectivity is color-coded, inventoried, and auditable, thereby enhancing transparency and operational consistency across the infrastructure. By maintaining direct contractual and billing relationships with TNOs as it relates to connectivity and fully managing each component of the telco connectivity path, Nasdaq enhances the integrity of the telco-to-customer communications network and strengthens its ability to oversee and control that connectivity. In the legacy NY11 model, such connectivity, as well as contractual relationships with TNOs with respect to such connectivity, are largely provided or established by the data center operator. As discussed below, however, the data center operator has historically maintained (and continues to maintain) contractual relationships with TNOs in connection with other data center-provided products or services, such as the leasing of space by and the provision of power to the telco provider.

Back to Citation 6.

                     The carrier cage is a meshed caged area or section in a data center which houses telco carrier and vendor equipment to which data center clients connect via Nasdaq or data center provided connectivity (the latter as in the case of legacy NY11). Throughout the data center campus, including NY11 and NY11-4, and NY11-5, the telco carrier cage cabinet is operated by the data center operator. The Exchange does not currently assess charges against telco providers, whether for use of such carrier cage space or otherwise.

Back to Citation 7.

                     A patch panel is a passive cabling interface used in data centers to terminate, organize, and route network or fiber connections. It serves as a centralized panel of ports where incoming cables (*e.g.,* from a telco carrier cage or backbone infrastructure) connect on one side, and outgoing cables (*e.g.,* to customer cabinets, distribution points, or equipment racks) connect on the other.

Back to Citation 8.

                     A distribution point is a designated passive cabling node within a data center's structured telecommunications architecture, where backbone or feeder cabling terminates, and from which downstream cabling is routed to customer cabinets or equipment locations. Distribution points serve as standardized, auditable locations used for organizing, patching, and managing connectivity.

Back to Citation 9.

                     That section of the telco-to-customer connectivity path consisting of the connectivity from the Nasdaq-provided distribution point to the customer client cabinet is not the subject or purpose of this proposed rule change. The scope of the telco connectivity service proposed herein is limited to that section of the telco-to-customer connectivity path consisting of the cabling extending from the telco provider carrier cage to the Nasdaq-provided distribution point only.

Back to Citation 10.

                     The Exchange is not proposing to modify its telco connectivity infrastructure. Rather, it seeks to designate a specific component of that infrastructure as a connectivity service, with associated fees to be established in a separate filing.

Back to Citation 11.

                     The Exchange does not currently assess charges against telco providers in the data center, whether for any component of the telco to customer connectivity path or otherwise. The Exchange is now proposing to introduce TNO Cross Connect to 

                    designate a certain component of the telco-to-customer cabinet cabling path, as described herein, as a connectivity service. The Exchange will submit a separate filing to establish fees for the service proposed herein.

Back to Citation 12.

                     As discussed below, the Exchange proposes to offer TNO Cross Connect throughout its data center campus, including NY11 (as fully retrofitted), NY11-4, and NY11-5 with implementation to take place during the second quarter of 2026. In the context of the proposed TNO Cross Connect service, a cross-connect refers to the physical, point-to-point cabling that links a telecommunications network operator from its data center-operated carrier cabinet to the Nasdaq-controlled distribution point within the data center. A cross-connect is a direct physical connection between two distinct demarcation points in a data center, typically used to provide a private, reliable path between a customer and a service provider.

Back to Citation 13.

                     To effect this change, the Exchange proposes to amend subparagraph (b) of Rule General 8, Section 1 as follows. The Exchange proposes to insert, immediately below the caption “Fiber” the words “TNO Cross Connect.” The Exchange further proposes to insert, where the column titled “Installation Fee” intersects the proposed entry “TNO Cross Connect,” the acronym “TBD.” Similarly, the Exchange proposes to enter “TBD” where the proposed entry “TNO Cross Connect” intersects the column titled “Ongoing Monthly Fee.” The Exchange believes the proposed changes are appropriate to indicate the introduction of the proposed connectivity service under subparagraph (b) of Rule General 8, Section 1, and to clarify that the proposed installation and ongoing monthly fees for such proposed service have yet to be established. As discussed above, the Exchange will submit a separate filing proposing fees for the TNO Cross Connect.

Back to Citation 14.

                     
                    See 
                     New York Stock Exchange LLC, Connectivity Fee Schedule (Jan. 1, 2026) (offering, under Section D (“Meet Me-Room (`MMR') Services”) thereof, a service titled “Carrier Connection Fee” to “[m]aintain Telecom's connections to its non-Telecom data center customers” for a monthly fee of $1,150) available at *[https://www.nyse.com/​publicdocs/​nyse/​Wireless_​Connectivity_​Fees_​and_​Charges.pdf](https://www.nyse.com/publicdocs/nyse/Wireless_Connectivity_Fees_and_Charges.pdf).*

Back to Citation 15. 15 U.S.C. 78f(b).

Back to Citation 16. 15 U.S.C. 78f(b)(5).

Back to Citation 17. See supra note 14 and accompanying text.

Back to Citation 18. 15 U.S.C. 78s(b)(3)(A)(iii).

Back to Citation 19. 17 CFR 240.19b-4(f)(6). Furthermore, Rule 19b-4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its intent to file a proposed rule change under that subsection at least five business days prior to the date of filing, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement.

Back to Citation 20. 17 CFR 200.30-3(a)(12).

Back to Citation [FR Doc. 2026-05344 Filed 3-18-26; 8:45 am]

BILLING CODE 8011-01-P

Published Document: 2026-05344 (91 FR 13371)