Notice2026-05476
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Equities Fees and Charges
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Published
March 20, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 54 (Friday, March 20, 2026)</title>
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[Federal Register Volume 91, Number 54 (Friday, March 20, 2026)]
[Notices]
[Pages 13672-13675]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-05476]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105031; File No. SR-NYSEARCA-2026-26]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE
Arca Equities Fees and Charges
March 17, 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 March 6, 2026, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. 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 amend the NYSE Arca Equities Fees and
Charges to introduce the NYSE Arca Equity Membership On-Ramp Program,
which offers discounted Equity Permit Holder (``ETP'') fees, port fees
and market data fees for up to 18 months for new ETP Holders. The
Exchange proposes to implement the rule change on March 6, 2026. The
proposed rule change is
[[Page 13673]]
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 proposes to amend the NYSE Arca Equities
Fees and Charges (``Fee Schedule'') to introduce the NYSE Arca Equity
Membership On-Ramp Program, which offers discounted ETP fees, port fees
and market data fees for up to 18 months for new ETP Holders.
The purpose of this filing is to encourage smaller, retail-oriented
market participants that are not currently NYSE Arca ETP Holders to
become ETP Holders by discounting certain fixed costs associated with
owning an equities trading permit.
The Exchange proposes to implement the fee changes effective March
6, 2026.\4\
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\4\ The Exchange originally filed to amend the Fee Schedule on
February 25, 2026 (SR-NYSEArca-2026-20). SR-NYSEArca-2026-20 was
withdrawn on March 6, 2026, and replaced by this filing.
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Background
Current Market and Competitive Environment
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.'' \5\
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\5\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (File No. S7-10-04) (Final
Rule) (``Regulation NMS'').
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While Regulation NMS has enhanced competition, it has also fostered
a ``fragmented'' market structure where trading in a single stock can
occur across multiple trading centers. When multiple trading centers
compete for order flow in the same stock, the Commission has recognized
that ``such competition can lead to the fragmentation of order flow in
that stock.'' \6\ Indeed, cash equity trading is currently dispersed
across 16 exchanges,\7\ numerous alternative trading systems,\8\ and
broker-dealer internalizers and wholesalers, all competing for order
flow. Based on publicly-available information, no single exchange
currently has more than 20% market share.\9\ Therefore, no exchange
possesses significant pricing power in the execution of cash equity
order flow. More specifically, the Exchange's share of executed volume
of equity trades in Tapes A, B and C securities is less than 12%.\10\
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\6\ See Securities Exchange Act Release No. 61358, 75 FR 3594,
3597 (January 21, 2010) (File No. S7-02-10) (Concept Release on
Equity Market Structure).
\7\ See Cboe U.S Equities Market Volume Summary, available at
<a href="https://markets.cboe.com/us/equities/market_share">https://markets.cboe.com/us/equities/market_share</a>. See generally
<a href="https://www.sec.gov/fast-answers/divisionsmarketregmrexchangesshtml.html">https://www.sec.gov/fast-answers/divisionsmarketregmrexchangesshtml.html</a>.
\8\ See FINRA ATS Transparency Data, available at <a href="https://otctransparency.finra.org/otctransparency/AtsIssueData">https://otctransparency.finra.org/otctransparency/AtsIssueData</a>. A list of
alternative trading systems registered with the Commission is
available at <a href="https://www.sec.gov/foia/docs/atslist.htm">https://www.sec.gov/foia/docs/atslist.htm</a>.
\9\ See Cboe Global Markets U.S. Equities Market Volume Summary,
available at <a href="https://markets.cboe.com/us/equities/market_share/">https://markets.cboe.com/us/equities/market_share/</a>.
\10\ See id.
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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
move order flow, or discontinue or reduce use of certain categories of
products. While it is not possible to know a firm's reason for shifting
order flow, the Exchange believes that one such reason is because of
fee changes at any of the registered exchanges or non-exchange venues
to which the firm routes order flow. Accordingly, competitive forces
compel the Exchange to use exchange transaction fees and credits
because market participants can readily trade on competing venues if
they deem pricing levels at those other venues to be more favorable.
Proposed Rule Change
The Exchange proposes to discount certain fixed costs related to
Exchange membership in order to incentivize smaller, retail-oriented
market participants to consider becoming ETP Holders. Specifically, as
discussed more fully below, the Exchange proposes to introduce a new
NYSE Arca Equity Membership On-Ramp Program (the ``Program'') that
offers significant discounts for up to 18 months on membership fees,
port fees and market data fees for new ETP Holders, subject to specific
restrictions. The Program is substantially the same as NYSE Membership
On-Ramp Program offered by the Exchange's affiliate the New York Stock
Exchange LLC.
The Exchange currently charges ETP Holders certain fixed costs
related to Exchange membership, including port fees, and fees for
market data products, which are filed with the Commission and set forth
on a separate Fee Schedule.\11\ Effective February 25, 2026, the
Exchange proposes to discount these fees for new ETP Holders during the
first 18 months following approval as a new ETP Holder to make Exchange
membership easier for a greater number market participants.
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\11\ The NYSE Arca Proprietary Market Data Fee Schedule is
available at <a href="https://www.nyse.com/publicdocs/nyse/data/NYSE_Arca_Equities_Proprietary_Data_Fee_Schedule.pdf">https://www.nyse.com/publicdocs/nyse/data/NYSE_Arca_Equities_Proprietary_Data_Fee_Schedule.pdf</a> (``Market Data
Schedule'').
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Eligibility and Restrictions
To be eligible, a ETP Holder may not have been, within the prior 18
months, approved as an NYSE Arca permit holder with an activated
trading license. Eligibility for discounts begins in the month that a
new membership application is approved. A new ETP Holder is only
eligible to enroll in the Program once. A new ETP Holder that is an
``affiliate'' of an existing ETP Holder, defined in the General section
at the end of the Fee Schedule as any ETP Holder under 75% common
ownership or control of that ETP Holder, is ineligible to participate
in the Program.
The Exchange currently charges a $15,000 per year per ETP Holder
fee that is billed monthly for each month during which the ETP is held
for any portion of the month. ETP Holders eligible for program would be
eligible for the Program's proposed discounts during the 18-month
period, as follows: Months 1-6, 100% discount; months 7-12, 50%
discount; and months 13-18, 25% discount.
In addition, the Exchange offers the following Market Data products
to new ETP Holders on a voluntary, subscription basis: NYSE Arca
Integrated Feed, NYSE ArcaBook, NYSE Arca Aggregated Lite, NYSE Arca
BBO, NYSE Arca Trades, and NYSE Arca
[[Page 13674]]
Order Imbalances (``Market Data Product''). Each market data product
allows a vendor to redistribute certain data elements included in the
data feed on a real-time basis. For each product, the Exchange charges
associated fees set forth on the Market Data Fee Schedule.\12\ The
Exchange is not proposing any changes to the NYSE Proprietary Market
Data Fee Schedule or the fees described therein.
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\12\ See note 10, supra.
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The Market Data Fees that would be eligible for the Program are the
Access Fees (general and Per User, if applicable), Professional User
Fees (internal use only), Non-Professional User fee (for external use,
including Enterprise Fees), Non-Display Fees, Redistribution Fee, and
Multiple Data Feed Fee (``Eligible Market Data Fees'') for the market
data products specified on the Market Data Fee Schedule. The Program's
discounts are not available to an ETP Holder subject to the Digital
Media Enterprise Fee or Professional User Fees for any data externally
distributed to professional subscribers. A firm that was a subscriber
to any of the Eligible Market Data Fees within the prior 18 months
before becoming approved as a new ETP holder is ineligible for
Program's Market Data fee discounts. Program discounts cannot be
combined with any other discounts applicable to Eligible Market Data
Fees. For example, the Exchange offers a one-month free trial to any
firm that subscribes to a particular NYSE Arca proprietary real time
market data product for the first time. As proposed, this discount
could not be combined with Program discounts to extend Phase 1 (as
defined below) by one month.
Finally, the Program would be available for fees charged for the
first 10 ports that provide connectivity to the Exchange's trading
systems (i.e., ports for entry of orders and/or quotes (``order/quote
entry ports'')). The Exchange currently charges $621 per order/quote
entry port per month, except that no fee shall apply to ports in the
backup datacenter that are not utilized during the relevant month, and
no fee shall apply to ports in the backup datacenter that are utilized
when the primary datacenter is unavailable. The Exchange also makes
ports available for drop copies and charges ETP Holders $621 per drop
copy port per month, even if receiving drop copies from multiple order/
quote entry ports and/or from NYSE Arca Options, except that no fee
applies to ports in the backup datacenter if configured such that it is
duplicative of another drop copy port of the same user. The Program
would also be available for fees charged for ETP Holder's first 10 drop
copy ports.
The proposed discounts would be phased out over a period of 18
months. Specifically, during Phase 1 (months 1-6) following approval of
a new membership application, the applicable discount for Eligible
Market Data Fees, trading license fees, and port fees would be 100% for
each eligible product. During Phase 2 (months 7-12), the amount of the
discount would become 50%. Finally, during Phase 3 (months 13-18), the
discount will be 25%. The Program would terminate at the end of Phase 3
(18 months), and the discounted fees will be charged to that ETP Holder
at the regular rate set forth in the Fee Schedule or Market Data Fee
Schedule, as applicable, from that point forward. For example, assume
ETP Holder A approved in May 2026 signs up for 20 drop copy ports.
Currently, ETP Holder A would be charged $621 per port, for a total of
$12,420 per month. Under the Program, ETP Holder A's first 10 ports
would be free for the first 6 months, and the firm would only be
charged for 10 ports at $621, for a total of $6,210 per month. In
months 7 to 12, ETP Holder A's first 10 ports would be billed at a 50%
discount, or $310.50 per port per month, for a total of $3,105 per
month. In the final 6 months of the Program, ETP Holder A's first 10
ports would be billed at a 25% discount, or $465.75 per port per month,
for a total of $4,657.50 per month.
The proposed changes are not otherwise intended to address other
issues, and the Exchange is not aware of any significant problems that
market participants would have in complying with the proposed changes.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\13\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\14\ 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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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(4) & (5).
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The Proposed Change Is Reasonable
As discussed above, the Exchange operates in a highly fragmented
and competitive market where market participants can and do move order
flow, or discontinue or reduce use of certain categories of products,
in response to fee changes. Moreover, in the current competitive market
environment, market participants also have a choice of where to become
members.
In light of this, the Exchange believes offering discounted
membership fees, port fees and market data fees for up to 18 months for
new ETP Holders in order to provide an incentive for smaller broker-
dealers to apply for Exchange membership and a trading license. The
Exchange believes that providing an incentive for broker-dealers that
are not currently Exchange ETP Holders to apply for membership would
encourage market participants to become members of the Exchange and
bring additional liquidity to a public market. In addition, the
Exchange believes that the proposal could result in additional retail
liquidity to a public exchange, to the benefit of all market
participants. The Exchange believes creating incentives and
opportunities for new members on the Exchange protects investors and
the public interest by increasing the competition and liquidity on a
transparent public market.
The Proposal Is an Equitable Allocation of Fees
The Exchange believes the proposal equitably allocates fees and
credits among market participants because the Program would be offered
to all market participants that wish to trade at the Exchange and all
ETP Holders, all of whom would continue to be subject to the same fee
structure and access to the Exchange's market would continue to be
offered on fair and nondiscriminatory terms.
The Proposal Is Not Unfairly Discriminatory
The Exchange believes that the proposal is not unfairly
discriminatory. In the prevailing competitive environment, ETP Holders
are free to disfavor the Exchange's pricing if they believe that
alternatives offer them better value.
The proposal is not unfairly discriminatory because it neither
targets nor uniquely impacts any particular category of market
participant. The proposed discounted lower trading license fees and
discounted access to Exchange services for up to 18 months does not
permit unfair discrimination because the proposed changes would apply
to all similarly situated ETP Holders, who would all benefit from the
lower and discounted fees on an equal basis.
For the foregoing reasons, the Exchange believes that the proposal
is consistent with the Act.
[[Page 13675]]
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\15\ the Exchange
believes that the proposed rule change would not 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 increase competition by reducing the
cost of operating as an ETP Holder, which the Exchange believes will
enhance market quality through the submission of additional retail
liquidity to a public exchange, thereby promoting market depth, price
discovery and transparency and enhancing order execution opportunities
for ETP Holders. 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.'' \16\
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\15\ 15 U.S.C. 78f(b)(8).
\16\ See Regulation NMS, 70 FR at 37498-99.
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Intramarket Competition. The proposed change is designed to attract
additional ETP Holders and order flow to the Exchange. The Exchange
believes that the proposed changes would continue to incentivize market
participants to become Exchange ETP Holders and direct order flow,
especially retail order flow, to the Exchange. Greater liquidity
benefits all market participants on the Exchange by encouraging market
participants to become Exchange ETP Holders and send orders to the
Exchange, thereby providing more trading opportunities and contributing
to robust levels of liquidity on the Exchange, which benefits all
market participants. The proposed lower fees and discounts would be
available to all similarly situated market participants, and, as such,
the proposed change would not impose a disparate burden on competition
among market participants on the Exchange. As noted, the proposal would
apply to all similarly situated ETP Holders on the same and equal
terms, who would benefit from the changes on the same basis.
Accordingly, the proposed change 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 choose to
send their orders to other exchange and off-exchange venues if they
deem fee levels at those other venues to be more favorable. In such an
environment, the Exchange must continually adjust its fees and rebates
to remain competitive with other exchanges and with off-exchange
venues. Because competitors are free to modify their own fees and
credits in response, and because market participants may readily adjust
their order routing practices, the Exchange does not believe its
proposed fee change can impose any burden on intermarket competition.
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
Pursuant to Section 19(b)(3)(A)(ii) of the Act,\17\ and Rule 19b-
4(f)(2) thereunder \18\ the Exchange has designated this proposal as
establishing or changing a due, fee, or other charge imposed on any
person, whether or not the person is a member of the self-regulatory
organization, which renders the proposed rule change effective upon
filing. At any time within 60 days of the filing of the 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.
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\17\ 15 U.S.C. 78s(b)(3)(A)(ii).
\18\ 17 CFR 240.19b-4.
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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#f381869f96de909c9e9e969d8780b3809690dd949c85"><span class="__cf_email__" data-cfemail="9be9eef7feb6f8f4f6f6fef5efe8dbe8fef8b5fcf4ed">[email protected]</span></a>. Please include
file number SR-NYSEARCA-2026-26 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-2026-26. 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-2026-26 and should be submitted
on or before April 10, 2026.
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\19\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-05476 Filed 3-19-26; 8:45 am]
BILLING CODE 8011-01-P
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