Amends Professional Orders Quarterly Review to Monthly

SR-ISE-2026-16 Page 3 of 27

1. Text of the Proposed Rule Change
   (a) Nasdaq ISE, LLC ("ISE" or "Exchange"), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 ("Act") and Rule 19b-4 thereunder, is filing with 1 2 the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule to amend the quarterly review of Professional Orders. 3 A notice of the proposed rule change for publication in the Federal Register is attached hereto as Exhibit 1. The text of the proposed rule change is attached as Exhibit 5. (b) Not applicable. (c) Not applicable.

2. Procedures of the Self-Regulatory Organization
   The proposed rule change was approved by senior management of the Exchange pursuant to authority delegated by the Board of Directors (the "Board"). Exchange staff will advise the Board of any action taken pursuant to delegated authority. No other action is necessary for the filing of the rule change.

15 U.S.C. 78s(b)(1). 1 17 CFR 240.19b-4. 2 The term "Professional Order" means an order that is for the account of a person or entity that is 3 not a Priority Customer. See Options 1, Section 1(a)(40). The manner in which a Professional Order is calculated is specified in Options 1, Section 1(a)(40)(a).

SR-ISE-2026-16 Page 4 of 27

1. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis
   for, the Proposed Rule Change

2. Purpose
   The Exchange proposes to amend the quarterly review of Professional Orders. Today, orders for any Priority Customer that average more than 390 orders per day 4 during any month of a calendar quarter must be represented as Professional orders for the next calendar quarter. In order to properly represent orders entered on the Exchange, 5 Members are required currently to review their Priority Customers' activity and, on at 6 least a quarterly basis, designate orders as Priority Customer orders or Professional orders. Specifically, Members are required to conduct a quarterly review and make any 7 appropriate changes to the way in which they are representing orders within five days after the end of each calendar quarter. While Members are required to designate 8 accounts on a quarterly basis, if during a quarter the Exchange identifies a customer for which orders are being represented as Priority Customer Orders but that has averaged more than 390 orders per day during a month, the Exchange must notify the Member and

The term "Priority Customer" means a person or entity that (i) is not a broker or dealer in 4 securities, and (ii) does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s). See Options 1, Section 1(a)(38). The requirement to review Priority Customers' activity on at least a quarterly basis to determine 5 whether orders that are not for the account of a broker-dealer should be represented as Priority Customer Orders or Professional Orders is not in the current rule text, however it was described in the adopting proposal. See Securities Exchange Act Release No. 78788 (September 8, 2016), 81 FR 63252 (September 14, 2016) (SR-ISE-2016-19) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Add Specificity to the Definition of a Professional in the Exchange's Rules) ("SR-ISE-2016-19"). The instant proposal seeks to codify the timing for review of Priority Customers' activity. The term "Member" means an organization that has been approved to exercise trading rights 6 associated with Exchange Rights. See General 1, Section 1(a)(13). See 81 FR 63252 at 63253. 7 See id. 8

SR-ISE-2026-16 Page 5 of 27 the Member is required to change the manner in which it is representing the customer's orders within five days. 9

Proposal

At this time, the Exchange proposes to shorten the quarterly review and designation to a monthly review. The Exchange proposes to state at Options 1, Section 1(a)(40)(b) that orders for any customer that had an average of more than 390 orders per day during any calendar month must be represented as Professional orders for the next calendar month. As noted, currently, each Member is required to monitor Priority Customer orders to determine if the Priority Customer has averaged more than 390 orders per day during a month. Determining whether a Priority Customer has executed more than 390 orders per day during a month requires computing a daily average. As such, Members should be performing the workflow necessary to designate orders on a daily basis. Therefore, the proposal does not amend the current workflow, rather, the proposal amends the timeframe to change the manner in which the customer's order is being represented from five days after the end of each calendar quarter to five days after the end of each calendar month.

See id. 9

SR-ISE-2026-16 Page 6 of 27

appropriate recommendations. The Exchange notes that the trading behavior of a Priority Customer can be distinguished from that of a Professional which is the purpose of the separate designations. Finally, some Members currently designate a Priority Customer that has averaged more than 390 orders per day during a month as a Professional on a more expedited basis, not waiting until five days after the quarter. The Exchange believes that a calendar month is a sufficient time period to determine whether the activity of a customer meets the criteria for a Professional order. The Exchange believes that the shortened time period will ensure that the spirit of the designation of Professional order is met in that Members will make any appropriate changes to the way in which they are representing orders in a 30-day timeframe as opposed to a 90-day timeframe, thereby ensuring the designation is applied in a more expeditious manner. The Exchange continues to believe that identifying Professional orders based upon the average number of orders entered in qualified accounts is an appropriate and objective approach to reasonably distinguish such persons and entities from retail investors or market participants.

The Exchange proposes to reserve Options 3B, Options 3C and Options 4D. Other Nasdaq affiliated exchanges have proposed rules in those corresponding sections. The reserved sections are intended to harmonize the structure of the Exchange's rules to those of other Nasdaq affiliated exchanges. The Exchange proposes that this amendment

SR-ISE-2026-16 Page 7 of 27 be operative 30 days from the date of filing. Implementation The Exchange proposes implementing this rule change on July 1, 2026, except for the technical amendments which should become operative 30 days after the date of the filing. The Exchange will issue an Options Trader Alert to provide notice to Members of the proposed change.

1. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act, in general, and furthers the objectives of Section 6(b)(5) of the Act, in 10 11 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. The Exchange's proposal to shorten the quarterly look-back to a monthly look- back is consistent with the Act because it will ensure that the spirit of the designation of Professional order continues to be met, only on a more expedited basis -- removing a potential delay of two months before affecting a change in the designation. The Exchange believes that this amendment will remove impediments to and perfect the mechanism of a free and open market and a national market system by promoting the consistent application of its rules and shortening the timeframe to change the designation for all Members while continuing to provide a sufficient time period to determine whether the activity of a customer meets the criteria for a Professional order. Further, the

15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). 11

SR-ISE-2026-16 Page 8 of 27 Exchange believes that the shortened time period will continue to promote consistency in the treatment of orders as Professional orders while also preventing members with high volume from receiving benefits reserved for Priority Customer orders. As noted, currently, each Member is required to monitor Priority Customer orders to determine if the Priority Customer has averaged more than 390 orders per day during a month. Determining whether a Priority Customer has executed more than 390 orders per day during a month requires computing a daily average. As such, Members should be performing the workflow necessary to designate orders on a daily basis. Therefore, the proposal does not amend the current workflow, rather, the proposal amends the timeframe to change the manner in which the customer's order is being represented from five days after the end of each calendar quarter to five days after the end of each calendar month.

appropriate recommendations. Finally, some Members currently designate a Priority Customer that has averaged more than 390 orders per day during a month as a

SR-ISE-2026-16 Page 9 of 27

from that of a Professional which is the purpose of the separate designations. The Exchange continues to believe that identifying Professional orders based upon the average number of orders entered in qualified accounts is an appropriately objective approach to reasonably distinguish such persons and entities from retail investors or market participants. Priority is one of the marketplace advantages provided to Priority Customer orders on the Exchange. Priority Customer orders are given execution priority over non-Customer orders and quotations of market makers at the same price. Another marketplace advantage afforded to Priority Customer orders on the Exchange is that members are generally not assessed transaction fees or are assessed lower fees for the execution of Priority Customer orders. The purpose of these marketplace advantages is to attract retail order flow to the Exchange by leveling the playing field for retail investors over market Professionals. This proposal will continue to provide Priority Customer accounts with marketplace advantages and distinguish those accounts non- Professional retail investors from the Professionals accounts. The Exchange notes that some non-broker-dealer individuals and entities have access to information and technology that enables them to Professionally trade listed options in the same manner as a broker or dealer in securities.

Reserving Options 3B, Options 3C and Options 4D are non-substantive amendments.

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

The Exchange does not believe that the proposed rule change will impose any

SR-ISE-2026-16 Page 10 of 27 burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Specifically, the Exchange does not believe that the proposed rule change will impose any burden on intra-market competition because, today, each Member is required to monitor Priority Customer orders to determine if the Priority Customer has averaged more than 390 orders per day during a month. Determining whether a Priority Customer has executed more than 390 orders per day during a month requires computing a daily average. As such, Members should be performing the workflow necessary to designate orders on a daily basis. Therefore, the proposal does not amend the current workflow, rather, the proposal amends the timeframe to change the manner in which the customer's order is being represented from five days after the end of each calendar quarter to five days after the end of each calendar month.

appropriate recommendations. Finally, some Members currently designate a Priority Customer that has averaged more than 390 orders per day during a month as a

SR-ISE-2026-16 Page 11 of 27

from that of a Professional which is the purpose of the separate designations. Further, the designation of Professional orders would not result in any different treatment of such orders for purposes of compliance with the Exchange's Rules. Priority Customers have been granted certain priority over other non-broker-dealer individuals and entities that have access to information and technology that enables them to Professionally trade listed options in the same manner as a broker or dealer in securities. Further, the Priority Customer designation allows the Exchange to attract order flow or create more competitive markets. Also, the Exchange does not believe that the proposed rule change will impose any burden on inter-market competition because other exchanges are expected to adopt similar rules.

1. 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.

1. Extension of Time Period for Commission Action

Not applicable.

1. Basis for Summary Effectiveness Pursuant to Section 19(b)(3) or for Accelerated Effectiveness Pursuant to Section 19(b)(2) The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act and Rule 19b-4(f)(6) thereunder in that it effects a change 12 13 that: (i) does not significantly affect the protection of investors or the public interest; (ii)

15 U.S.C. 78s(b)(3)(A)(iii). 12 17 CFR 240.19b-4(f)(6). 13

SR-ISE-2026-16 Page 12 of 27 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. The Exchange's proposal to shorten the quarterly look-back to a monthly look- back does not significantly affect the protection of investors or the public interest, rather it will ensure that the spirit of the designation of Professional order continues to be met, only on a more expediated basis -- removing a potential delay of two months before affecting a change in the designation. Each Member is required to monitor Priority Customer orders to determine if the Priority Customer has averaged more than 390 orders per day during a month. Determining whether a Priority Customer has executed more than 390 orders per day during a month requires computing a daily average. As such, Members should be performing the workflow necessary to designate orders on a daily basis. Therefore, the proposal does not amend the current workflow, rather, the proposal amends the timeframe to change the manner in which the customer's order is being represented from five days after the end of each calendar quarter to five days after the end of each calendar month. This proposal will continue to provide a sufficient time period to determine whether the activity of a customer meets the criteria for a Professional order while also preventing members with high volume from receiving benefits reserved for Priority Customer orders. The Exchange does not believe that this amendment is a significant departure from the current rule, nor does it impose any burden on any Member because each broker-dealer is required currently to perform the necessary calculation daily to arrive at the requisite average. Further, in addition to the calculation, broker-

SR-ISE-2026-16 Page 13 of 27 dealers are subject to know-your-customer and suitability requirements under FINRA Rules 2090 (Know Your Customer) and 2111 (Suitability) and would need to consider whether a customer meets the Professional designation for purposes of determining best execution and making appropriate recommendations. Finally, some Members currently designate a Priority Customer that has averaged more than 390 orders per day during a month as a Professional on a more expedited basis, not waiting until five days after the quarter. The Exchange does not believe that the proposed rule change will impose any significant burden on competition because, today, each broker-dealer is required to monitor a Priority Customer orders to determine if the Priority Customer has averaged more than 390 orders per day during a month. Every broker-dealer will be required to 14 change the manner in which it is representing the customer's order within five days after the end of each calendar month instead of within five days after the end of each calendar quarter. With this proposal, all Members would be uniformly requiring a change in designation within five days after the end of each calendar month. Also, the designation of Professional orders would not result in any different treatment of such orders for purposes of compliance with the Exchange's Rules. Priority Customers have been granted certain priority over other non-broker-dealer individuals and entities that have access to information and technology that enables them to Professionally trade listed options in the same manner as a broker or dealer in securities. Further, the Priority Customer designation allows the Exchange to attract order flow or create more

FINRA, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory 14 responsibilities to FINRA to conduct certain options-related market surveillances including surveilling for compliance with Professional designations.

SR-ISE-2026-16 Page 14 of 27 competitive markets. Finally, the Exchange believes that the shortened time period will continue to promote consistency in the treatment of orders as Professional orders while also preventing members with high volume from receiving benefits reserved for Priority Customer orders. Furthermore, Rule 19b-4(f)(6)(iii) requires a self-regulatory organization to give 15 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 provided such notice. 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.

1. Proposed Rule Change Based on Rules of Another Self-Regulatory Organization
   or of the Commission Not applicable.

2. Security-Based Swap Submissions Filed Pursuant to Section 3C of the Act

Not applicable.

1. Advance Notices Filed Pursuant to Section 806(e) of the Payment, Clearing and

Settlement Supervision Act Not applicable.

17 CFR 240.19b-4(f)(6)(iii). 15

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1. Exhibits
2. Notice of Proposed Rule Change for publication in the Federal Register.

3. Text of the proposed rule change.
   SR-ISE-2026-16 Page 16 of 27 EXHIBIT 1 SECURITIES AND EXCHANGE COMMISSION [Release No. 34 ; File No. SR-ISE-2026-16] Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Review of Professional Orders Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 ("Act"), and Rule 1 19b-4 thereunder, notice is hereby given that on March 31, 2026, Nasdaq ISE, LLC ("ISE" or 2 "Exchange") filed with the Securities and Exchange Commission ("SEC" or "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.

4. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed
   Rule Change The Exchange proposes to amend the quarterly review of Professional Orders. 3 The text of the proposed rule change is available on the Exchange's Website at https://listingcenter.nasdaq.com/rulebook/ise/rulefilings, and at the principal office of the Exchange.

15 U.S.C. 78s(b)(1). 1 17 CFR 240.19b-4. 2 The term "Professional Order" means an order that is for the account of a person or entity that is not a 3 Priority Customer. See Options 1, Section 1(a)(40). The manner in which a Professional Order is calculated is specified in Options 1, Section 1(a)(40)(a).

SR-ISE-2026-16 Page 17 of 27

1. 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.

2. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis
   for, the Proposed Rule Change

3. Purpose
   The Exchange proposes to amend the quarterly review of Professional Orders. Today, orders for any Priority Customer that average more than 390 orders per day during any month of 4 a calendar quarter must be represented as Professional orders for the next calendar quarter. In 5 order to properly represent orders entered on the Exchange, Members are required currently to 6 review their Priority Customers' activity and, on at least a quarterly basis, designate orders as Priority Customer orders or Professional orders. Specifically, Members are required to conduct 7 a quarterly review and make any appropriate changes to the way in which they are representing

The term "Priority Customer" means a person or entity that (i) is not a broker or dealer in securities, and (ii) 4 does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s). See Options 1, Section 1(a)(38). The requirement to review Priority Customers' activity on at least a quarterly basis to determine whether 5 orders that are not for the account of a broker-dealer should be represented as Priority Customer Orders or Professional Orders is not in the current rule text, however it was described in the adopting proposal. See Securities Exchange Act Release No. 78788 (September 8, 2016), 81 FR 63252 (September 14, 2016) (SR- ISE-2016-19) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Add Specificity to the Definition of a Professional in the Exchange's Rules) ("SR-ISE-2016-19"). The instant proposal seeks to codify the timing for review of Priority Customers' activity. The term "Member" means an organization that has been approved to exercise trading rights associated 6 with Exchange Rights. See General 1, Section 1(a)(13). See 81 FR 63252 at 63253. 7

SR-ISE-2026-16 Page 18 of 27 orders within five days after the end of each calendar quarter. While Members are required to 8 designate accounts on a quarterly basis, if during a quarter the Exchange identifies a customer for which orders are being represented as Priority Customer Orders but that has averaged more than 390 orders per day during a month, the Exchange must notify the Member and the Member is required to change the manner in which it is representing the customer's orders within five days. 9 Proposal At this time, the Exchange proposes to shorten the quarterly review and designation to a monthly review. The Exchange proposes to state at Options 1, Section 1(a)(40)(b) that orders for any customer that had an average of more than 390 orders per day during any calendar month must be represented as Professional orders for the next calendar month. As noted, currently, each Member is required to monitor Priority Customer orders to determine if the Priority Customer has averaged more than 390 orders per day during a month. Determining whether a Priority Customer has executed more than 390 orders per day during a month requires computing a daily average. As such, Members should be performing the workflow necessary to designate orders on a daily basis. Therefore, the proposal does not amend the current workflow, rather, the proposal amends the timeframe to change the manner in which the customer's order is being represented from five days after the end of each calendar quarter to five days after the end of each calendar month.

See id. 8 See id. 9

SR-ISE-2026-16 Page 19 of 27

of determining best execution and making appropriate recommendations. The Exchange notes that the trading behavior of a Priority Customer can be distinguished from that of a Professional which is the purpose of the separate designations. Finally, some Members currently designate a Priority Customer that has averaged more than 390 orders per day during a month as a

The Exchange believes that a calendar month is a sufficient time period to determine whether the activity of a customer meets the criteria for a Professional order. The Exchange believes that the shortened time period will ensure that the spirit of the designation of Professional order is met in that Members will make any appropriate changes to the way in which they are representing orders in a 30-day timeframe as opposed to a 90-day timeframe, thereby ensuring the designation is applied in a more expeditious manner. The Exchange continues to believe that identifying Professional orders based upon the average number of orders entered in qualified accounts is an appropriate and objective approach to reasonably distinguish such persons and entities from retail investors or market participants.

The Exchange proposes to reserve Options 3B, Options 3C and Options 4D. Other Nasdaq affiliated exchanges have proposed rules in those corresponding sections. The reserved sections are intended to harmonize the structure of the Exchange's rules to those of other Nasdaq affiliated exchanges. The Exchange proposes that this amendment be operative 30 days from the date of filing.

SR-ISE-2026-16 Page 20 of 27 Implementation The Exchange proposes implementing this rule change on July 1, 2026, except for the technical amendments which should become operative 30 days after the date of the filing. The Exchange will issue an Options Trader Alert to provide notice to Members of the proposed change.

1. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act, in general, and furthers the objectives of Section 6(b)(5) of the Act, in particular, in 10 11 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. The Exchange's proposal to shorten the quarterly look-back to a monthly look-back is consistent with the Act because it will ensure that the spirit of the designation of Professional order continues to be met, only on a more expedited basis -- removing a potential delay of two months before affecting a change in the designation. The Exchange believes that this amendment will remove impediments to and perfect the mechanism of a free and open market and a national market system by promoting the consistent application of its rules and shortening the timeframe to change the designation for all Members while continuing to provide a sufficient time period to determine whether the activity of a customer meets the criteria for a Professional order. Further, the Exchange believes that the shortened time period will continue to promote

15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). 11

SR-ISE-2026-16 Page 21 of 27 consistency in the treatment of orders as Professional orders while also preventing members with high volume from receiving benefits reserved for Priority Customer orders. As noted, currently, each Member is required to monitor Priority Customer orders to determine if the Priority Customer has averaged more than 390 orders per day during a month. Determining whether a Priority Customer has executed more than 390 orders per day during a month requires computing a daily average. As such, Members should be performing the workflow necessary to designate orders on a daily basis. Therefore, the proposal does not amend the current workflow, rather, the proposal amends the timeframe to change the manner in which the customer's order is being represented from five days after the end of each calendar quarter to five days after the end of each calendar month.

of determining best execution and making appropriate recommendations. Finally, some Members currently designate a Priority Customer that has averaged more than 390 orders per day during a month as a Professional on a more expedited basis, not waiting until five days after the quarter.

from that of a Professional which is the purpose of the separate designations. The Exchange continues to believe that identifying Professional orders based upon the average number of

SR-ISE-2026-16 Page 22 of 27 orders entered in qualified accounts is an appropriately objective approach to reasonably distinguish such persons and entities from retail investors or market participants. Priority is one of the marketplace advantages provided to Priority Customer orders on the Exchange. Priority Customer orders are given execution priority over non-Customer orders and quotations of market makers at the same price. Another marketplace advantage afforded to Priority Customer orders on the Exchange is that members are generally not assessed transaction fees or are assessed lower fees for the execution of Priority Customer orders. The purpose of these marketplace advantages is to attract retail order flow to the Exchange by leveling the playing field for retail investors over market Professionals. This proposal will continue to provide Priority Customer accounts with marketplace advantages and distinguish those accounts non-Professional retail investors from the Professionals accounts. The Exchange notes that some non-broker-dealer individuals and entities have access to information and technology that enables them to Professionally trade listed options in the same manner as a broker or dealer in securities.

Reserving Options 3B, Options 3C and Options 4D are non-substantive amendments.

1. 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. Specifically, the Exchange does not believe that the proposed rule change will impose any burden on intra-market competition because, today, each Member is required to monitor Priority Customer orders to determine if the Priority Customer has averaged more than 390 orders per day during a month. Determining whether a Priority Customer has executed more than 390 orders per day during a month requires computing a daily average. As such, Members should be performing the workflow necessary to designate orders on a daily basis. Therefore,

SR-ISE-2026-16 Page 23 of 27 the proposal does not amend the current workflow, rather, the proposal amends the timeframe to change the manner in which the customer's order is being represented from five days after the end of each calendar quarter to five days after the end of each calendar month.

of determining best execution and making appropriate recommendations. Finally, some Members currently designate a Priority Customer that has averaged more than 390 orders per day during a month as a Professional on a more expedited basis, not waiting until five days after the quarter. The Exchange notes that the trading behavior of a Priority Customer can be distinguished from that of a Professional which is the purpose of the separate designations. Further, the designation of Professional orders would not result in any different treatment of such orders for purposes of compliance with the Exchange's Rules. Priority Customers have been granted certain priority over other non-broker-dealer individuals and entities that have access to information and technology that enables them to Professionally trade listed options in the same manner as a broker or dealer in securities. Further, the Priority Customer designation allows the Exchange to attract order flow or create more competitive markets. Also, the Exchange does not believe that the proposed rule change will impose any burden on inter-market competition because other exchanges are expected to adopt similar rules.

SR-ISE-2026-16 Page 24 of 27

1. 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.

2. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
   Because the foregoing proposed rule change does not: (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act and subparagraph (f)(6) of Rule 19b-4 thereunder. 12 13 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.

3. 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:

15 U.S.C. 78s(b)(3)(A)(iii). 12 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the 13 Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement.

SR-ISE-2026-16 Page 25 of 27 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-ISE-2026-16 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-ISE-2026-16. 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-ISE-2026-16 and should be submitted on or before [INSERT DATE 21 DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL REGISTER]. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. 14

17 CFR 200.30-3(a)(12). 14

SR-ISE-2026-16 Page 26 of 27 Sherry R. Haywood, Assistant Secretary.

SR-ISE-2026-16 Page 27 of 27 EXHIBIT 5 New text is underlined; deleted text is in brackets. Nasdaq ISE, LLC Rules

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  Options 1 General Provisions Section 1. Definitions (a) The following terms, when used in these Rules, shall have the meanings specified in this Options 1, unless the context indicates otherwise. Any term defined in the Limited Liability Company Agreement (the "LLC Agreement") or the By-Laws of Nasdaq ISE, LLC (the "By- Laws") and not otherwise defined in this Options 1 shall have the meaning assigned in the LLC Agreement or the By-Laws.

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  (40) The term "Professional Order" means an order that is for the account of a person or entity that is not a Priority Customer.

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  (b) Orders for any customer that had an average of more than 390 orders per day during any calendar month must be represented as Professional Orders for the next calendar month. Members will be required to conduct a monthly review and make any appropriate changes to the way in which they are representing orders within five days after the end of each calendar month.

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  Options 3B Reserved

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  Options 3C Reserved

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  Options 4D Reserved

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