Notice2026-02226

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 Modify Certain Fees and Rebates Applicable to Specialists, e-Specialists and NYSE American Options Market Makers and Floor Brokers

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Published
February 4, 2026

Issuing agencies

Securities and Exchange Commission

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<title>Federal Register, Volume 91 Issue 23 (Wednesday, February 4, 2026)</title>
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[Federal Register Volume 91, Number 23 (Wednesday, February 4, 2026)]
[Notices]
[Pages 5122-5125]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-02226]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-104752; File No. SR-NYSEAMER-2026-08]


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 Modify Certain Fees and 
Rebates Applicable to Specialists, e-Specialists and NYSE American 
Options Market Makers and Floor Brokers

January 30, 2026.
    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 January 28, 2026, 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'') regarding fees and rebates applicable to 
Specialists, e-Specialists and NYSE American Options Market Makers 
(``Market Makers'') and Floor Brokers. 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.

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 amend the Fee Schedule to modify 
fees and rebates applicable to Specialists, e-Specialists and Market 
Makers (collectively, ``Floor Market Makers'') and Floor Brokers. 
Specifically, the Exchange proposes to (1) extend a current surcharge 
that applies to certain complex orders to any Floor Market Maker order 
that is a counterparty to a Manual trade executed by a Floor Broker 
that is not a Simple Order, and (2) establish a rebate payable to Floor 
Brokers for such trades with a Floor Market Maker order. The Exchange 
proposes the fee change to be effective January 28, 2026.\4\
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    \4\ The Exchange previously filed to amend the Fee Schedule on 
January 2, 2026 (SR-NYSEAMER-2026-01), then withdrew such filing and 
amended the Fee Schedule on January 16, 2026 (SR-NYSEAMER-2026-04), 
which latter filing the Exchange withdrew on January 28, 2026.
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    The Exchange currently charges a surcharge of $0.12 per contract 
that is applied to any electronic Non-Customer Complex Order that 
executes against a Customer Complex Order (the ``Non-Customer Complex 
Surcharge''), regardless of whether the execution occurs in a Complex 
Order Auction but does not apply to executions in CUBE Auctions. For 
ATP Holders that achieve a prescribed volume threshold during a billing 
month, the Non-Customer Complex Surcharge is reduced to ($0.10). The 
Non-Customer Complex Surcharge is consistent with surcharges imposed by 
other options exchanges.\5\ The Non-Customer Complex Surcharge is 
described in footnote 5 in Section I.A. of the Fee Schedule.\6\ The 
Exchange proposes extending the current surcharge of $0.12 per contract 
to any Floor Market Maker order that is a counterparty to a Manual 
trade executed by a Floor Broker that is not a Simple Order,\7\ and to 
establish a rebate of $0.20 per contract payable to the Floor Broker 
side of such trades. For Floor Brokers that participate in the FB 
Prepay

[[Page 5123]]

Program, the proposed rebate would apply in lieu of any rebates earned 
through the Manual Billable Rebate Program as provided in Section III. 
E. of the Fee Schedule. Although the proposed change would increase the 
fee for Manual transactions that are not Simple Orders (``non-Simple 
Manual orders'') for Floor Market Makers, the Exchange believes these 
participants will continue to quote actively to participate in 
transactions on the Trading Floor as they do today, thereby promoting 
trading opportunities and competition on the Trading Floor to the 
benefit of all market participants. The Exchange also believes that the 
proposed rebate would continue to incentivize Floor Brokers to 
participate on the Trading Floor, including when the counterparty to 
such trading is a Floor Market Maker.
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    \5\ See, e.g., NYSE Arca Options Fee Schedule, ELECTRONINC 
COMPLEX ORDER EXECUTION (TRANSACTION FEE--PER CONTRACT), footnote * 
(assessing $0.12 per contract surcharge to any electronic Non-
Customer Complex Order that executes against a Customer Complex 
Order); MIAX Options Fee Schedule, Sections 1)a)i)-ii) (assessing a 
$0.12 per contract surcharge for trading against a Priority Customer 
Complex Order for Penny and Non-Penny classes).
    \6\ See Fee Schedule, Section I.A. (Rates for Options 
transactions).
    \7\ A ``Simple Order'' is any order to purchase or sell 
contracts in a single listed option series. See Fee Schedule, KEY 
TERMS and DEFINITIONS.
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    To reflect the changes proposed herein, the Exchange proposes to 
add the following new rule text in footnote 5 in Section I.A. of the 
Fee Schedule: ``The surcharge will also be applied to any Floor Market 
Maker order that is a counterparty to a Manual trade executed by a 
Floor Broker that is not a Simple Order, and the Floor Broker side of 
such trade will be eligible for a rebate of ($0.20). For Participants 
in the FB Prepay Program, the rebate will apply in lieu of any rebates 
achieved via the Manual Billable Rebate Program described below in 
Section III.E.'' Finally, the Exchange proposes a non-substantive, 
clarifying change to add the words ``for Electronic executions'' in the 
third sentence of footnote 5 to specify that the discount would not 
apply to Manual Complex Orders.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\9\ 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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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4) and (5).
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The Proposed Rule Change Is Reasonable
    The Exchange operates in a highly competitive 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.'' \10\
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    \10\ 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.\11\ Therefore, currently no exchange possesses significant 
pricing power in the execution of multiply-listed equity and ETF 
options order flow. More specifically, in November 2025, the Exchange 
had 8.58% market share of executed volume of multiply-listed equity and 
ETF options trades.\12\ In such a low-concentrated and highly 
competitive market, no single options exchange possesses significant 
pricing power in the execution of options 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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    \11\ 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>.
    \12\ Based on a compilation of OCC data for monthly volume of 
equity-based options and monthly volume of equity-based ETF options, 
see id., the Exchange's market share in equity-based options 
increased from 6.09% for the month of November 2024 to 8.58% for the 
month of November 2025.
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    The Exchange believes that the ever-shifting market share among the 
exchanges from month to month demonstrates that market participants can 
shift order flow or discontinue or reduce use of certain categories of 
products, in response to fee changes. Accordingly, competitive forces 
constrain options exchange transaction fees.
    The Exchange believes that the proposed rebate would incentivize 
Floor Brokers to direct additional non-Simple Manual orders to the 
Exchange, thereby creating more trading opportunities on the Trading 
Floor for all market participants, including Market Makers. The 
Exchange thus believes that, despite the proposed surcharge on Market 
Maker orders that are counterparty to such Floor Broker orders, Market 
Makers would not be discouraged from continuing to quote and trade 
actively on the Exchange.
    The Exchange believes that the proposed changes are reasonably 
designed to incent Floor Brokers (and other participants on the Trading 
Floor) to increase the number of Manual orders sent to the Exchange. 
Any increase in trading volume would create more trading opportunities 
for all market participants and would in turn attract additional order 
flow to the Exchange, further contributing to a deeper, more liquid 
market to the benefit of all market participants. The Exchange also 
notes that the proposed rebate is similar in structure to incentive 
programs for Floor Brokers offered by competing options exchanges.\13\
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    \13\ See, e.g., BOX Exchange Fee Schedule, Section V. Manual 
Transaction Fees, available at <a href="https://boxexchange.com/assets/BOX-Fee-Schedule-as-of-January-22-2026.pdf">https://boxexchange.com/assets/BOX-Fee-Schedule-as-of-January-22-2026.pdf</a> (offering Floor Brokers that 
submit QOO and FOO Orders a $0.20 per contract enhanced rebate for 
executions that trade with a Floor Market Maker, in lieu of lesser 
per contract rebates also available to Floor Brokers); MIAX Sapphire 
Options Exchange, Section 1) c) Trading Floor Transactions, 
available at <a href="https://www.miaxglobal.com/sites/default/files/fee_schedule-files/MIAX_Sapphire_Fee_Schedule_01212026_b.pdf">https://www.miaxglobal.com/sites/default/files/fee_schedule-files/MIAX_Sapphire_Fee_Schedule_01212026_b.pdf</a> 
(providing for the ``Floor Broker Breakup Credit,'' a $0.20 credit 
applicable to Floor Brokers that submit a QFO or cQFO for executions 
that trade with a Floor Market Maker, instead of the $0.10 Floor 
Broker rebate otherwise available).
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    The Exchange further believes the surcharge is reasonable because 
it is designed to offset costs associated with the proposed rebate 
payable to Floor Brokers when they interact with Floor Market Makers. 
To the extent this purpose is achieved, the Exchange believes that the 
proposed surcharge would not disincentivize Market Maker activity on 
the Trading Floor because increased order flow from Floor Brokers 
seeking to earn the proposed rebate would result in more opportunities 
to trade for all market participants.
    To the extent the proposed rule change continues to attract greater 
volume and liquidity by encouraging Floor Brokers to increase their 
options volume on the Exchange in an effort to earn the proposed 
rebate, the Exchange believes the proposed changes would improve the 
Exchange's overall competitiveness and strengthen its market quality 
for all market participants. Against the backdrop of the competitive 
environment in which the Exchange operates, the proposed rule change is 
a reasonable attempt by the Exchange to increase the depth of its 
market and improve its market share relative to its competitors.

[[Page 5124]]

The Proposed Rule Change Is an Equitable Allocation of Credits and Fees
    The Exchange believes the proposed rule change is an equitable 
allocation of its fees and credits because the proposed rebate is based 
on the amount and type of business transacted on the Exchange, and 
Floor Brokers can try to earn the proposed rebate, or not. The Exchange 
also believes that the proposed surcharge is equitable because it is 
designed to balance costs associated with encouraging increased 
execution opportunities on the Trading Floor, and an increase in such 
orders would in turn enhance trading opportunities for all market 
participants. The Exchange also believes that the proposed rebate to 
Floor Brokers is an equitable allocation of fees and credits because it 
is intended to support Floor Brokers' role in facilitating the 
execution of Manual orders, which function benefits all market 
participants on the Trading Floor.
    Moreover, the proposal is designed to incent participation on the 
Trading Floor in an effort to make the Exchange a primary execution 
venue and to attract more Manual transactions to the Exchange. To the 
extent that the proposed change attracts more Floor Broker orders to 
the Exchange, this increased order flow would continue to make the 
Exchange a more competitive venue for, among other things, order 
execution. Thus, the Exchange believes the proposed rule change would 
improve market quality for all market participants on the Exchange and, 
as a consequence, attract more order flow to the Exchange thereby 
improving market-wide quality and price discovery.
The Proposed Rule Change Is Not Unfairly Discriminatory
    The Exchange believes it is not unfairly discriminatory to impose a 
surcharge on Floor Market Maker orders that are a counterparty to a 
Floor Broker non-Simple Manual order because the proposed change would 
apply to all Floor Market Maker orders equally, and as discussed above, 
the Exchange believes it is not unfairly discriminatory to incent order 
flow to the Exchange, which would enhance liquidity on the Exchange to 
the benefit of all market participants. The Exchange also believes that 
the proposed rebate payable to Floor Brokers for a non-Simple Manual 
order that trades with a Floor Market Maker order is not unfairly 
discriminatory because it would be available to all similarly-situated 
market participants on an equal and non-discriminatory basis. The 
Exchange further believes that the proposed rebate available to Floor 
Brokers is not unfairly discriminatory to other market participants 
because it is intended to encourage the role performed by Floor Brokers 
in facilitating the execution of orders via open outcry, a function 
which the Exchange wishes to support for the benefit of all market 
participants. In addition, although the proposed change would apply a 
surcharge to Market Maker orders that trade with Floor Broker non-
Simple Manual orders, the Exchange believes that Market Makers would 
not be discouraged from continuing to participate actively on the 
Trading Floor and would benefit from increased Floor Broker order flow 
as a result of the proposed change. To the extent that this increased 
order flow attracts order flow from other market participants to the 
Trading Floor, the proposed rule change would improve market quality 
and promote additional trading opportunities for all market 
participants on the Exchange.
    Finally, the Exchange believes that it is subject to significant 
competitive forces, as described below in the Exchange's statement 
regarding the burden on competition.

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 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 change furthers 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.'' \14\
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    \14\ See Reg NMS Adopting Release, supra note 10, at 37499.
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    Intramarket Competition. The proposed change is designed to attract 
additional order flow to the Exchange. The Exchange believes that the 
proposed surcharge on Floor Market Maker orders that are a counterparty 
to Floor Broker non-Simple Manual orders, and the proposed rebate 
payable to the Floor Broker side of such trades would encourage Floor 
Broker non-Simple Manual order flow and would not disincentivize Floor 
Market Maker activity. Greater liquidity benefits all market 
participants on the Exchange and increased order flow would increase 
opportunities for execution of other trading interest. The proposed 
modifications would apply and be available to all similarly-situated 
market participants that execute Manual transactions on the Trading 
Floor, and, accordingly, the proposed changes would not impose a 
disparate burden on competition among market participants on the 
Exchange.
    Intermarket Competition. The Exchange operates in a highly 
competitive market in which market participants can readily favor one 
of the other 17 competing options exchanges if they deem the Exchange's 
fee levels to be excessive. In such an environment, the Exchange must 
continually adjust its fees to remain competitive with other exchanges 
and to attract order flow to the Exchange. 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.\15\ Therefore, currently no exchange 
possesses significant pricing power in the execution of multiply-listed 
equity and ETF options order flow. More specifically, in November 2025, 
the Exchange had 8.58% market share of executed volume of multiply-
listed equity and ETF options trades.\16\
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    \15\ 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>.
    \16\ Based on a compilation of OCC data for monthly volume of 
equity-based options and monthly volume of equity-based ETF options, 
see id., the Exchange's market share in equity-based options 
increased from 6.09% for the month of November 2024 to 8.58% for the 
month of November 2025.
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    The Exchange believes that the proposed rule change reflects this 
competitive environment because it modifies the Exchange's fees in a 
manner designed to continue to incent participants on the Trading Floor 
to direct trading interest to the Exchange, to provide liquidity and to 
attract additional order flow. To the extent that Floor Brokers are 
encouraged to utilize the Exchange as a primary trading venue for all 
transactions, all Exchange market participants stand to benefit from 
the improved market quality and increased opportunities for price 
improvement. The Exchange notes that it operates in a highly 
competitive market in which market participants can readily favor 
competing venues. In such an

[[Page 5125]]

environment, the Exchange must continually review, and consider 
adjusting, its fees and credits to remain competitive with other 
exchanges. For the reasons described above, the Exchange believes that 
the proposed rule change reflects this competitive environment.

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) \17\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \18\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 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) \19\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \19\ 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#dba9aeb7bef6b8b4b6b6beb5afa89ba8beb8f5bcb4ad"><span class="__cf_email__" data-cfemail="394b4c555c145a5654545c574d4a794a5c5a175e564f">[email&#160;protected]</span></a>. Please include 
file number SR-NYSEAMER-2026-08 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-2026-08. 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-2026-08 and should be submitted 
on or before February 25, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-02226 Filed 2-3-26; 8:45 am]
BILLING CODE 8011-01-P


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