Notice2025-21991
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 Exempt Floor Brokers From the Routing Surcharge
Primary source
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Published
December 5, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 232 (Friday, December 5, 2025)</title>
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[Federal Register Volume 90, Number 232 (Friday, December 5, 2025)]
[Notices]
[Pages 56222-56224]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-21991]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104295; File No. SR-NYSEAMER-2025-68]
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 Exempt Floor Brokers From the
Routing Surcharge
December 2, 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 November 26, 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 exempt Floor Brokers from routing fees.
The Exchange also proposes to make a technical change to an existing
incentive program. The Exchange proposes to implement the fee change
effective November 26, 2025.\4\ The proposed rule change is available
on the Exchange's website at <a href="http://www.nyse.com">www.nyse.com</a> and at the principal office
of the Exchange.
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\4\ The Exchange originally filed to amend the Fee Schedule on
September 30, 2025 (SR-NYSEAMER-2025-61), for October 1, 2025
effectiveness, then withdrew such filing and amended the Fee
Schedule on November 24, 2025 (SR-NYSEAMER-2025-66), which latter
filing the Exchange withdrew on November 26, 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 exempt
Floor Brokers from routing fees and to make a technical change to an
existing incentive program.
Routing Surcharge Change
The Exchange currently assesses market participants a Routing
Surcharge on orders routed and executed on another exchange.\5\ The
Exchange proposes to modify the Fee Schedule to exempt Floor Brokers
from Routing Surcharges that they might incur when required to route
orders away from the Exchange to honor away market interest, in order
to incentivize them to increase (or maintain) their activity in open
outcry on the Exchange. To the extent that this incentive operates as
intended it will increase liquidity on the Trading Floor, which
benefits all market participants.
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\5\ 17 CFR 240.19b-4.
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Technical Change to FB Prepay Program, QCC Billable Bonus Rebate
The Exchange offers a 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.\6\ 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 (the ``QCC Bonus Rebate'').
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\6\ See Fee Schedule, Section I, L. (Routing Surcharge).
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The Exchange proposes to make following technical changes to the
table--particularly the column setting forth the Bonus Level(s)--for
the QCC Bonus Rebate (new text is italicized and to-be-deleted text is
bracketed). The below non-substantive formatting changes are being made
to add clarity and transparency to the Fee Schedule, making it easier
to navigate and comprehend. The Exchange is not proposing any changes
to any qualifying criteria or rebate amounts.
[[Page 56223]]
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Additional rebate Additional
QCC billable bonus rebate on single rebate on two
Base and bonus level(s) qualification billable side QCC billable side
contract QCC contract
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[1]Base................................. Execute 500,000 QCC billable ($0.02) ($0.04)
contracts.
[2]1.................................... Execute 4 million QCC billable (0.04) (0.06)
contracts.
[3]2.................................... Execute combined manual billable (0.04) (0.06)
and QCC billable contracts equal
to at least 200% of Bonus Level
2, plus an additional 500,000
combined manual billable and QCC
billable contracts.
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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 proposed change is reasonable, equitable, and not unfairly
discriminatory. As a threshold matter, the Exchange is subject to
significant competitive forces in the market for options securities
transaction services that constrain its pricing determinations in that
market. The Commission has repeatedly expressed its preference for
competition over regulatory intervention in determining prices,
products, and services in the securities markets. In Regulation NMS,
the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \9\
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\9\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (S7-10-04) (``Reg NMS
Adopting Release'').
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There are currently 18 registered options exchanges competing for
order flow. Based on publicly-available information, and excluding
index-based options, no single exchange has more than 16% of the market
share of executed volume of multiply-listed equity and ETF options
trades.\10\ Therefore, currently no exchange possesses significant
pricing power in the execution of multiply-listed equity and ETF
options order flow. More specifically, in August 2025, the Exchange had
8.53% market share of executed volume of multiply-listed equity and ETF
options trades.\11\ In such a low-concentrated and highly competitive
market, no single options exchange possesses significant pricing power
in the execution of option order flow. Within this environment, market
participants can freely and often do shift their order flow among the
Exchange and competing venues in response to changes in their
respective pricing schedules.
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\10\ The OCC publishes options and futures volume in a variety
of formats, including daily and monthly volume by exchange,
available here: <a href="https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics">https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics</a>.
\11\ Based on a compilation of OCC data for monthly volume of
equity-based options and monthly volume of ETF-based options, see
id., the Exchange's market share in multiply-listed equity and ETF
options increased from 7.29% in August 2024 to 8.53% for the month
of August 2025.
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Routing Change
The Exchange believe the proposal to exempt Floor Brokers from
Routing Surcharge is reasonable, equitable, and not unfairly
discriminatory because the Exchange believes that this change will
incentivize Floor Brokers to increase (or maintain) their activity in
open outcry. The proposed change would exempt Floor Brokers from fees
that they otherwise would incur when required to route orders away from
the Exchange to honor away market interest, thereby encouraging them to
continue to participate in open outcry trading without having to
account for such fees. To the extent that this incentive operates as
intended it will increase liquidity on the Trading Floor, which
benefits all market participants.
The Exchange believes the proposed rule change is an equitable
allocation of its fees and is not unfairly discriminatory, as it
applies equally to all similarly-situated market participants on an
equal and non-discriminatory basis. The Exchange notes that Floor
Brokers play a unique and important role in ensuring liquidity is
executed on the Trading Floor, which the Exchange believes justifies
exempting them from fees assessed to other market participants.
Technical Change to QCC Bonus Rebate
The Exchange believes the proposed technical change to modify the
table setting forth the QCC Bonus Rebate--particularly the column
setting forth the Bonus Level(s)--is reasonable, equitable, and not
unfairly discriminatory because the changes are non-substantive
formatting changes intended only to add clarity and transparency to the
Fee Schedule, making it easier to navigate and comprehend.
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 rule change 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 Exchange believes
that the proposed changes would continue to encourage the submission of
additional liquidity to a public exchange, thereby promoting market
depth, price discovery and transparency and enhancing order execution
opportunities for all market participants. As a result, the Exchange
believes that the proposed changes further the Commission's goal in
adopting Regulation NMS of fostering integrated competition among
orders, which promotes ``more efficient pricing of individual stocks
for all types of orders, large and small.'' \12\
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\12\ See Reg NMS Adopting Release, supra note 8, at 37499.
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Intramarket Competition. The proposed change to exempt Floor
Brokers from the Routing Surcharge would not unduly impact intramarket
because the change applies equally to all similarly-situated market
participants on an equal and non-discriminatory basis. The Exchange
notes that Floor Brokers play a unique and important role in ensuring
liquidity is executed on the Trading Floor, which the Exchange believes
justifies exempting Floor Brokers from fees assessed to other market
participants.
The Exchange's proposed non-substantive formatting changes to
modify the table setting forth the QCC Bonus Rebate--particularly the
column setting forth the Bonus Level(s)--is not intended to address any
competitive issues but to instead add clarity and
[[Page 56224]]
transparency to the Fee Schedule making it easier to navigate and
comprehend.
Intermarket Competition. The Exchange operates in a highly
competitive market in which market participants can readily favor one
of the 17 other competing option exchanges if they deem fee levels at a
particular venue to be excessive. Based on publicly-available
information, and excluding index-based options, no single exchange has
more than 16% of the market share of executed volume of multiply-listed
equity and ETF options trades.\13\ Therefore, currently no exchange
possesses significant pricing power in the execution of multiply-listed
equity and ETF options order flow. More specifically, in August 2025,
the Exchange had 8.53% market share of executed volume of multiply-
listed equity and ETF options trades.\14\
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\13\ The OCC publishes options and futures volume in a variety
of formats, including daily and monthly volume by exchange,
available here: <a href="https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics">https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics</a>.
\14\ Based on a compilation of OCC data for monthly volume of
equity-based options and monthly volume of ETF-based options, see
id., the Exchange's market share in multiply-listed equity and ETF
options increased from 7.29% in August 2024 to 8.53% for the month
of August 2025.
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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) \15\ of the Act and subparagraph (f)(2) of Rule
19b-4 \16\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 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 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) \17\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\17\ 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#5725223b327a34383a3a323923241724323479303821"><span class="__cf_email__" data-cfemail="a9dbdcc5cc84cac6c4c4ccc7dddae9daccca87cec6df">[email protected]</span></a>. Please include
file number SR-NYSEAMER-2025-68 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-2025-68. 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 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-NYSEAMER-2025-68 and should be submitted
on or before December 26, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-21991 Filed 12-4-25; 8:45 am]
BILLING CODE 8011-01-P
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