Notice2026-02802

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the NYSE Arca Options Fee Schedule To Eliminate a Pricing Incentive Relating to Options on NYSE Arca Equities-Listed Digital Asset Exchange Trading Funds

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
February 12, 2026

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 91 Issue 29 (Thursday, February 12, 2026)</title>
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[Federal Register Volume 91, Number 29 (Thursday, February 12, 2026)]
[Notices]
[Pages 6717-6718]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-02802]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-104787; File No. SR-NYSEARCA-2026-11]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Modify the 
NYSE Arca Options Fee Schedule To Eliminate a Pricing Incentive 
Relating to Options on NYSE Arca Equities-Listed Digital Asset Exchange 
Trading Funds

February 9, 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 30, 2026, NYSE Arca, Inc. (``NYSE Arca'' 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 Arca Options Fee Schedule 
(``Fee Schedule'') to eliminate a pricing incentive related to options 
on digital asset ETFs. 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 Exchange proposes to amend the Fee Schedule to eliminate a 
pricing incentive designed to encourage trading in options on NYSE Arca 
Equities-listed digital asset ETFs (the ``Digital Asset 
Incentive'').\4\ Currently, the Digital Asset Incentive provides for an 
additional discount of $0.05 per contract on electronic take liquidity, 
manual, and electronic complex-to-complex executions or an additional 
credit of $0.05 per contract on electronic post liquidity executions, 
applicable to executions in options on NYSE Arca Equities-listed 
digital asset ETFs (excluding QCC transactions). The Digital Asset 
Incentive does not apply to QCC transactions (which are subject to 
separate fees and credits), and executions in options on NYSE Arca 
Equities-listed digital asset ETFs are not included in the daily fee 
cap on strategy executions (i.e., the Limit of Fee on Options Strategy 
Executions) or calculations for or rebates available through the Manual 
Billable Rebate Program.\5\
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    \4\ See Fee Schedule, Endnote 12.
    \5\ Manual executions of options on digital asset ETFs are 
subject to the Firm and Broker Dealer Monthly Fee Cap, including the 
assessment of the incremental service fee of $0.01 per contract once 
that Cap has been reached. See Fee Schedule, FIRM AND BROKER DEALER 
MONTHLY FEE CAP.

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[[Page 6718]]

    The Exchange adopted the Digital Asset Incentive in an effort to 
incentivize trading in, at the time, newly available options on digital 
asset ETFs (as well as in other options series in digital asset ETFs 
that might be listed on NYSE Arca Equities in the future). Because the 
Digital Asset Incentive has been underutilized and thus has not 
achieved its intended effect, the Exchange now proposes to eliminate it 
from the Fee Schedule. To effect this change, the Exchange proposes to 
delete Endnote 12, as well as cross-references to Endnote 12 throughout 
the Fee Schedule.\6\
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    \6\ See proposed Fee Schedule, Endnote 12; TRANSACTION FEE FOR 
MANUAL EXECUTIONS--PER CONTRACT; TRANSACTION FEE FOR ELECTRONIC 
EXECUTIONS--PER CONTRACT; ELECTRONIC COMPLEX ORDER EXECUTIONS, 
TRANSACTION FEE--PER CONTRACT; LIMIT OF FEES ON OPTIONS STRATEGY 
EXECUTIONS and FLOOR BROKER FIXED COST PREPAYMENT INCENTIVE PROGRAM 
(the ``FB Prepay Program'')
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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 Exchange believes that the proposed rule change to eliminate 
the Digital Asset Incentive is reasonable because this program has not 
effectively encouraged OTP Holders to increase trading in options on 
NYSE Arca Equities-listed digital asset ETFs, and eliminating an 
underutilized incentive program would simplify the Fee Schedule. The 
Exchange also believes that eliminating the Digital Asset Incentive 
from the Fee Schedule is equitable and not unfairly discriminatory 
because the program would be eliminated in its entirety and would no 
longer be available to any OTP Holders.

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, the Exchange believes that the proposed 
elimination of the Digital Asset Incentive would not affect intramarket 
or intermarket competition because, as noted above, the program has not 
effectively encouraged increased trading in options on NYSE Arca 
Equities-listed digital asset ETFs, and its elimination would impact 
all OTP Holders equally. The Exchange operates in a highly competitive 
market in which market participants can readily favor one of the 18 
competing option exchanges. In such an environment, the Exchange must 
continually adjust its fees and rebates to remain competitive with 
other exchanges and to attract order flow to the Exchange. The Exchange 
believes that the proposed rule change reflects this competitive 
environment because it removes an underutilized program that did not 
achieve its intended purpose.

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 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#7a080f161f57191517171f140e093a091f19541d150c"><span class="__cf_email__" data-cfemail="2d5f584148004e4240404843595e6d5e484e034a425b">[email&#160;protected]</span></a>. Please include 
file number SR-NYSEARCA-2026-11 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-NYSEARCA-2026-11. 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-NYSEARCA-2026-11 and should be submitted 
on or before March 5, 2026.

    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. 2026-02802 Filed 2-11-26; 8:45 am]
BILLING CODE 8011-01-P


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