Notice2026-06155
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 Regarding Certain Fees and Rebates Applicable to Non-Customers and Floor Brokers
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
March 31, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 61 (Tuesday, March 31, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 61 (Tuesday, March 31, 2026)]
[Notices]
[Pages 16028-16031]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-06155]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105085; File No. SR-NYSEARCA-2026-28]
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 Regarding Certain Fees and Rebates
Applicable to Non-Customers and Floor Brokers
March 26, 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 11, 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
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'') regarding fees and rebates applicable to Non-
Customers 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 Non-Customers \4\ and Floor Brokers.
Specifically, the Exchange proposes to (1) extend a current surcharge
that applies to certain electronic complex orders to Manual complex
orders, and (2) establish a rebate payable to Floor Broker orders that
trade with a Market Maker order on the Trading Floor. The Exchange
proposes the fee change to be effective March 10, 2026.\5\
---------------------------------------------------------------------------
\4\ The Fee Schedule refers to Firms, Broker Dealers, and Market
Makers collectively as ``Non-Customers.'' See NYSE Arca OPTIONS:
TRADE-RELATED CHARGES FOR STANDARD OPTIONS.
\5\ The Exchange previously filed to amend the Fee Schedule on
January 2, 2026 (SR-NYSEARCA-2026-02), then withdrew such filing and
amended the Fee Schedule on January 16, 2026 (SR-NYSEARCA-2026-05),
and then withdrew such filing and amended the Fee Schedule on
January 28, 2026 (SR-NYSEARCA-2026-07), which latter filing the
Exchange withdrew on March 10, 2026.
---------------------------------------------------------------------------
The Exchange currently applies a $0.12 per contract surcharge to
any electronic Non-Customer Complex Order that executes against a
Customer Complex Order (the ``Non-Customer Complex Surcharge''). The
Non-Customer Complex Surcharge is consistent with surcharges imposed by
other options exchanges.\6\ The Non-Customer Complex Surcharge is
denoted with an ``*'' in the transaction fee table in the Electronic
Complex Order Executions section of the Fee Schedule.
---------------------------------------------------------------------------
\6\ See, e.g., NYSE American Options Fee Schedule, Section I.A.
(Rates for Options transactions), footnote 5 (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).
---------------------------------------------------------------------------
[[Page 16029]]
The Exchange proposes to extend the Non-Customer Complex Surcharge
to also apply to any Non-Customer Manual complex order that executes
against a Customer Manual complex order.\7\ To effect this change, the
Exchange proposes to adopt a new Endnote 18 that would be appended to
Order Types LMM and NYSE Arca Market Maker in the section of the Fee
Schedule titled ``TRANSACTION FEE FOR MANUAL EXECUTIONS--PER CONTRACT''
and replace the ``*'' currently denoting the Non-Customer Complex
Surcharge. The Exchange also proposes to delete the text defining the
Non-Customer Complex Surcharge in the ``*'' and move it to new Endnote
18, with revisions to specify that it would apply to both electronic
and Manual complex orders. In Endnote 18, the Exchange also proposes to
specify that, for purposes of the Non-Customer Complex Surcharge as
applicable to Manual executions, interest from the Trading Crowd is
considered ``Non-Customer.'' \8\ Finally, the Exchange proposes a
change to the heading of the pricing table titled ``Discount on Non-
Customer Complex Surcharge'' by adding the words ``for Electronic
Executions'' to clarify that such discounts would not apply to Manual
complex orders. The proposed changes with respect to the Non-Customer
Complex Surcharge, as applicable to electronic executions, are intended
only to clarify the application of the existing fee, rather than to
make any substantive changes.
---------------------------------------------------------------------------
\7\ A complex order, for purposes of this proposed change, is
any order other than an order to purchase or sell contracts in a
single listed option series.
\8\ The Exchange also proposes that Endnote 18 would reflect
that manual transactions in MXEA and MXEF are not subject to the
Non-Customer Complex Surcharge. See Securities Exchange Act Release
No. 104926 (March 4, 2026), 91 FR 11365 (March 9, 2026) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Modify the NYSE Arca Options Fee Schedule To Adopt Fees for Trading
in Options Overlying the MSCI EAFE Index and the MSCI Emerging
Markets Index).
---------------------------------------------------------------------------
The Exchange also proposes to establish a rebate of $0.20 per
contract payable to Floor Broker orders that trade with Market Maker
orders on the Trading Floor. For Floor Brokers that participate in the
FB Prepay Program, the proposed rebate would apply in lieu of any
rebates earned through the Manual Billable Rebate Program as provided
in the Fee Schedule. The Exchange proposes to add new text describing
this rebate to Endnote 17.
The Exchange 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 Market Maker. In
addition, although the proposed change to the Non-Customer Complex
Surcharge would increase the fee for Non-Customer Manual complex orders
that trade with Customer Manual complex orders, the Exchange believes
the proposed change to extend the Non-Customer Complex Surcharge to
Manual transactions and the proposed Floor Broker rebate would, on
balance, not discourage Non-Customers to continue to participate in
transactions on the Trading Floor, thereby promoting trading
opportunities and competition on the Trading Floor to the benefit of
all market participants.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\10\ 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
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.'' \11\
---------------------------------------------------------------------------
\11\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (S7-10-04) (``Reg NMS
Adopting Release'').
---------------------------------------------------------------------------
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.\12\ Therefore, currently no exchange possesses significant
pricing power in the execution of multiply-listed equity and ETF
options order flow. More specifically, in January 2026, the Exchange
had 10.39% market share of executed volume of multiply-listed equity
and ETF options trades.\13\ 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.
---------------------------------------------------------------------------
\12\ 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>.
\13\ 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 decreased from 13.08% in January 2025 to 10.39% for the
month of January 2026.
---------------------------------------------------------------------------
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 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 change to extend the Non-Customer
Complex Surcharge to apply to Non-Customer Manual complex orders that
trade against Customer Manual complex orders, Non-Customer market
participants 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.\14\
---------------------------------------------------------------------------
\14\ 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).
---------------------------------------------------------------------------
[[Page 16030]]
The Exchange further believes the proposed change is reasonable
because it is intended to extend the existing Non-Customer Complex
Surcharge for electronic complex orders involving a Non-Customer vs. a
Customer to also apply to Manual complex orders involving a Non-
Customer vs. a Customer and is designed to offset costs associated with
the proposed Floor Broker rebate. To the extent this purpose is
achieved, the Exchange believes that the proposed surcharge would not
disincentivize Non-Customer 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.
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 extend
the existing Non-Customer Complex Surcharge to apply to Non-Customer
Manual complex orders that trade against a Customer Manual complex
order because the proposed change would apply to all Non-Customer
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 Manual order that trades with a Market
Maker order on the Trading Floor 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 Non-
Customer Manual complex orders that trade with Customer Manual complex
orders, the Exchange believes that Non-Customers would not be
discouraged from continuing to participate actively on the Trading
Floor and would benefit from increased Manual order flow, including
from Floor Brokers seeking to earn the proposed rebate, 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.'' \15\
---------------------------------------------------------------------------
\15\ See Reg NMS Adopting Release, supra note 11, at 37499.
---------------------------------------------------------------------------
Intramarket Competition. The proposed change is designed to attract
additional order flow to the Exchange. The Exchange believes that the
proposed surcharge on Non-Customer Manual complex orders that are a
counterparty to Customer Manual complex orders and the proposed rebate
payable to the Floor Broker orders that trade against Market Maker
orders on the Trading Floor would encourage Floor Broker complex Manual
order flow and would not disincentivize Non-Customer activity on the
Trading Floor. 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
[[Page 16031]]
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.\16\ Therefore, currently no exchange
possesses significant pricing power in the execution of multiply-listed
equity and ETF options order flow. More specifically, in January 2026,
the Exchange had 10.39% market share of executed volume of multiply-
listed equity and ETF options trades.\17\
---------------------------------------------------------------------------
\16\ 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>.
\17\ 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 decreased from 13.08% in January 2025 to 10.39% for the
month of January 2026.
---------------------------------------------------------------------------
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 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) \18\ of the Act and subparagraph (f)(2) of Rule
19b-4 \19\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78s(b)(3)(A).
\19\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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) \20\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\20\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
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#6c1e190009410f0301010902181f2c1f090f420b031a"><span class="__cf_email__" data-cfemail="3341465f561e505c5e5e565d4740734056501d545c45">[email protected]</span></a>. Please include
file number SR-NYSEARCA-2026-28 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-2026-28. 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-2026-28 and
should be submitted on or before April 21, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
---------------------------------------------------------------------------
\21\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-06155 Filed 3-30-26; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on March 31, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.