Notice2025-13578
Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the NYSE American Options Fee Schedule To Restructure the Presentation of the Manual Billable Rebate Program and Delete Obsolete Pricing
Primary source
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Published
July 21, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 137 (Monday, July 21, 2025)</title>
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[Federal Register Volume 90, Number 137 (Monday, July 21, 2025)]
[Notices]
[Pages 34306-34308]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-13578]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103478; File No. SR-NYSEAMER-2025-41]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Modify
the NYSE American Options Fee Schedule To Restructure the Presentation
of the Manual Billable Rebate Program and Delete Obsolete Pricing
July 16, 2025.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on July 8, 2025, NYSE American LLC (``NYSE American'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
\3\ 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 modify the NYSE American Options Fee
Schedule (``Fee Schedule'') to modify and restructure the presentation
of the Manual Billable Rebate Program and to remove obsolete pricing.
The Exchange proposes to implement this change effective July 8,
2025.\4\ The proposed rule change is available on the Exchange's
website at <a href="http://www.nyse.com">www.nyse.com</a>, at the principal office of the Exchange, and
at the Commission's Public Reference Room.
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\4\ On June 11, 2025, the Exchange filed to amend the Fee
Schedule (NYSEAMER-2025-34) and withdrew such filing on June 26,
2025 (NYSEAMER-2025-36), which latter filing the Exchange withdrew
on July 8, 2025.
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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 self-regulatory organization
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 those 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to modify the Fee Schedule to
restructure the presentation of the Manual Billable Rebate Program (the
``Rebate Program'') and to remove obsolete pricing as described herein.
The Rebate Program is available to participants in the Floor Broker
Fixed Cost Prepayment Incentive Program (the ``FB Prepay Program''),
which is an incentive program that allows Floor Brokers that prepay
certain of their annual Eligible Fixed Costs to be eligible for the
Rebate Program.\5\ Participating Floor Brokers may be eligible for
rebates based on their monthly executions of manual billable sides as
well as on combined manual billable and QCC contracts.
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\5\ Manual billable volume includes transactions for which at
least one side is subject to manual transaction fees and unless
specified excludes QCCs, and any volume calculated to achieve
Strategy Cap, regardless of whether this cap is achieved. See Fee
Schedule, Section III.E.1., Floor Broker Fixed Cost Prepayment
Incentive Program (the ``FB Prepay Program'').
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Currently, the Rebate Program is presented in table form as shown
below and provides that rebates (including the ``Additional'' rebates)
are payable back to the first billable side, with qualifying
participants being eligible to receive only one ``Additional'' rebate.
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Tier Manual billable rebate qualification Rebate per billable side
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1............................... Execute 500,000 manual billable sides....... ($0.05)
2............................... Execute 1.1 million manual billable sides... ($0.07)
Achieve Tier 1 or 2, plus execute 3.5 Additional ($0.02)
million Firm Facilitation sides.
Execute 5 million combined manual billable ($0.10)
and QCC billable contracts.
Execute 7 million combined manual billable Additional ($0.01)
and QCC billable contracts.
Execute 10 million combined manual billable Additional ($0.02)
and QCC billable contracts.
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The Exchange proposes to relocate this information regarding
rebates on manual billable volume into paragraphs (and eliminate the
table) because it believes this presentation would make it easier for
market participants to navigate and understand. As proposed,
[[Page 34307]]
the Rebate Program would be described as follows.\6\
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\6\ See proposed Fee Schedule, Section III.E.1., Floor Broker
Fixed Cost Prepayment Incentive Program (the ``FB Prepay Program'').
Participants in the FB Prepay Program that achieve the following
monthly qualifications will be eligible for rebates through the
Manual Billable Rebate Program, payable on a monthly basis.
Participating Floor Brokers that execute at least 500,000 manual
billable sides in a month are eligible for a rebate of ($0.05) per
billable side, payable back to the first billable side. Participants
that execute at least 1.1 million manual billable sides in a month
are eligible for an additional rebate of ($0.02) per billable side,
payable back to the first billable side.
Participants that execute at least 500,000 manual billable sides
may be eligible for an additional rebate of ($0.02) per billable
side, payable back to the first billable side, if they also execute
at least 3.5 million Firm Facilitation sides. Alternatively,
Participants in the FB Prepay Program that execute at least 5
million combined manual billable and QCC billable contracts in a
month are eligible for a rebate of ($0.10) per billable side,
payable back to the first billable side. Participants that achieve
this combined volume threshold may also be eligible for one
additional rebate based on combined QCC and manual billable
contracts, payable back to the first billable side, as shown in the
table below. Participants that qualify for both rebates would be
entitled only to the greater of the two.
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Additional rebate per
Qualifying volume billable side
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Execute combined manual billable and QCC ($0.01)
billable contracts exceeding 5 million
by at least 40%.
OR....................................... OR
Execute combined manual billable and QCC ($0.02)
billable contracts exceeding 5 million
by at least 100%.
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The Exchange notes that, currently, it sets forth the above volume
thresholds for each Additional Rebate for combined manual billable and
QCC billable contracts (``combined threshold'') in raw numbers (e.g.,
at least 7 million or 10 million). The Exchange believes that utilizing
percentages going forward will provide Floor Brokers with a better
representation of the volume required to earn the Additional or ``step
up'' rebate. For example, a participating Floor Broker that exceeds the
5 million combined threshold by 40% will earn an additional ($0.01) and
one that exceeds it by 100% (i.e., doubles it) will earn an additional
($0.02). In other words, as restructured, the 5 million combined
threshold will operate as the ``base'' threshold and Floor Brokers may
strive to increase their base combined volume by 40% or 100% to earn
the highest rebate available.
The Exchange believes this proposed change to restructure the
presentation of the Rebate Program, which does not change the amount of
the rebates or the qualifying criteria, would make it easier for market
participants--specifically Floor Brokers--to understand the monthly
volume required to earn the rebates offered.
Finally, the Exchange proposes to eliminate reference to the Three-
Month Manual Volume Program, which is no longer available to FB Prepay
participants, as the program expired at the end of May 2025 per the Fee
Schedule and therefore this text is obsolete.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\8\ in particular,
because it provides for the equitable allocation of reasonable dues,
fees, and other charges among its members, issuers and other persons
using its facilities and does not unfairly discriminate between
customers, issuers, brokers or dealers.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes that the proposed rule change to restructure
the presentation of the Rebate Program, is reasonable, equitable, and
not unfairly discriminatory because it would improve the readability of
the Fee Schedule making it easier to discern the rebates available to
Floor Brokers participating in the FB Prepay Program, thus reducing
potential investor confusion making the Fee Schedule easier to navigate
and understand. Further, the Exchange believes the proposal to delete
reference to obsolete pricing (i.e., the Three-Month Manual Volume
Program) is reasonable, equitable, and not unfairly discriminatory
because it would promote clarity, transparency, and internal
consistency and therefore reduce potential investor confusion making
the Fee Schedule easier to navigate and understand.
The proposed rule change is equitable and not unfairly
discriminatory because it would impact all similarly situated market
participants (i.e., FB Prepay Participants) on an equal basis. The
Exchange believes that the proposed change would promote investor
protection and the public interest because the restructured rule text
would enhance and improve the readability of the Fee Schedule thus
reducing any potential confusion regarding rebates available to all
Floor Brokers participating in the FB Prepay Program.
The Exchange is not proposing any substantive change to the FB
Prepay Program or the Rebate Program.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act, the Exchange does
not believe that the proposed changes would impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Instead, as discussed above, the proposed change
relates solely to restructuring the presentation of the Rebate Program
and, accordingly, would not have any impact on intramarket or
intermarket competition. The proposed change is designed to improve the
readability of the Fee Schedule and to reduce (or avoid) any potential
confusion regarding rebates available to Floor Brokers participating in
the FB Prepay Program.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge
imposed by the Exchange.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may
[[Page 34308]]
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 under Section 19(b)(2)(B) \11\
of the Act to determine whether the proposed rule change should be
approved or disapproved.
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\11\ 15 U.S.C. 78s(b)(2)(B).
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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
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#ff8d8a939ad29c9092929a918b8cbf8c9a9cd1989089"><span class="__cf_email__" data-cfemail="5b292e373e76383436363e352f281b283e38753c342d">[email protected]</span></a>. Please include
file number SR-NYSEAMER-2025-41 on the subject line.
Paper Comments
<bullet> 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-NYSEAMER-2025-41. 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 (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also 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-NYSEAMER-2025-41 and should
be submitted on or before August 11, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-13578 Filed 7-18-25; 8:45 am]
BILLING CODE 8011-01-P
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