Nasdaq ISE files rule change to expand intrafirm cabinet connectivity service

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Nasdaq ISE cabinet connectivity rule

Highlights

Nasdaq ISE filed a rule change on May 26, 2026, to expand and update fees for non-contiguous intrafirm cabinet connectivity service.
The proposed rule mandates all data center customers to obtain non-contiguous intrafirm cabinet connectivity exclusively from the exchange, ending third-party provisioning.
Nasdaq ISE targets a second quarter 2026 implementation, arguing the change strengthens infrastructure integrity and supports auditing, administration, and maintenance.

Filing outlines connectivity and fee changes

As reported by the Securities and Exchange Commission, Nasdaq ISE filed the proposed rule change on May 26, 2026, for immediate effectiveness under Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4. The notice says the exchange seeks to amend Rule General 8, Section 1, to expressly list non-contiguous intrafirm cabinet connectivity as a subset of Fiber connectivity and to update the fees for that service.

The exchange says non-contiguous intrafirm cabinet connectivity consists of cross connections linking one customer cabinet to another non-contiguous or non-adjacent cabinet, provided all cabinets are licensed to the same customer. By contrast, links between contiguous or adjacent cabinets licensed to the same customer, when the connection does not pass through shared data center space, are generally customer-directed and are not offered by the exchange as a standalone connectivity service.

Under the proposal, all data center customers seeking non-contiguous intrafirm cabinet connectivity would have to obtain that service from the exchange. Third parties would no longer be allowed to provide intrafirm cabinet fiber connectivity within the exchange's data center halls.

Operational impact for exchange infrastructure

The exchange says the change would strengthen the integrity of its systems by reducing reliance on third-party provided intrafirm cabinet fiber inside its data center halls. It says bringing those connectivity components under Nasdaq's direct administration would support auditing, administration and maintenance of the related fiber infrastructure.

Nasdaq ISE argues in the filing that the proposal is consistent with Section 6(b) of the Act because it provides for an equitable allocation of reasonable dues, fees and other charges among members, issuers and other users of exchange facilities, and is not designed to permit unfair discrimination. The exchange says the proposed fees are reasonable because they reflect its investment in and ongoing provision of the infrastructure needed for non-contiguous intrafirm cabinet connectivity across the data center campus, with implementation proposed on or about the second quarter of 2026.

Our earlier coverage of House Energy and Commerce Committee leaders’ request for an FBI and White House review examined allegations that foreign influence campaigns are trying to slow U.S. data center expansion tied to AI capacity. The article highlighted lawmakers’ concerns that opposition to new builds and proposed moratoriums could undermine U.S. competitiveness and raise national-security risks as computing infrastructure becomes more strategically important.

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