Notice2026-06157
Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the NYSE American Options Fee Schedule To Adopt Fees for Trading in Options Overlying the MSCI EAFE Index and the MSCI Emerging Markets Index
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
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<title>Federal Register, Volume 91 Issue 61 (Tuesday, March 31, 2026)</title>
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[Federal Register Volume 91, Number 61 (Tuesday, March 31, 2026)]
[Notices]
[Pages 16055-16058]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-06157]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105087; File No. SR-NYSEAMER-2026-23]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the NYSE American Options Fee Schedule To Adopt Fees for Trading in
Options Overlying the MSCI EAFE Index and the MSCI Emerging Markets
Index
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 16, 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 amend the NYSE American Options Fee
Schedule (``Fee Schedule'') to adopt fees applicable to trading in
options that overlie each of the MSCI EAFE Index and the MSCI Emerging
Markets Index. 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
establish fees in connection with the launch of trading in options that
overlie the MSCI EAFE Index (``EAFE options'' or ``MXEA'') and the MSCI
Emerging Markets Index (``EM options'' or ``MXEF''). The Exchange
recently filed a proposed rule change to adopt rules to facilitate the
transfer and trading of EAFE options and EM options, which currently
trade on Cboe Exchange, Inc. (``Cboe Options'').\4\ The Exchange
proposes that the fees set forth in this filing will take effect on
March 16, 2026, the day that trading in EAFE options and EM options
begins on the Exchange.\5\
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\4\ See Securities Exchange Act Release No. 104957 (March 10,
2026) 91 FR 12473 (March 13, 2026) (SR-NYSEAMER-2026-15) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Facilitate the Transfer and Trading of Options that Overlie the MSCI
EAFE Index and the MSCI Emerging Markets Index); see also Securities
Exchange Act Release No. 74681 (April 8, 2015), 80 FR 20032 (April
14, 2015) (SR-CBOE-2015-023) (Order Granting Accelerated Approval of
Proposed Rule Change, as Modified by Amendment No. 1, to List and
Trade Options on the MSCI EAFE Index and on the MSCI Emerging
Markets Index).
\5\ See <a href="https://www.nyse.com/trader-update/history#110000955053">https://www.nyse.com/trader-update/history#110000955053</a>.
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The MSCI EAFE Index (``EAFE Index'') and MSCI Emerging Markets
Index (``EM Index'') are both free float-adjusted market capitalization
indexes calculated by MSCI Inc. (``MSCI''). The EAFE Index is designed
to measure the equity market performance of developed markets,
excluding the United States and Canada,\6\ and the EM Index is designed
to measure equity market performance of emerging markets.\7\ Both
indexes consist of large and midcap components, and each covers
approximately 85% of the free float-adjusted market capitalization in
each country included in the respective index.
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\6\ The MSCI EAFE Index consists currently of the following 21
developed market country indexes: Australia, Austria, Belgium,
Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel,
Italy, Japan, the Netherlands, New Zealand, Norway, Portugal,
Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
\7\ The MSCI EM Index consists currently of the following 24
emerging market country indexes: Brazil, Chile, China, Colombia,
Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea,
Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar,
Russia, South Africa, Taiwan, Thailand, Turkey and United Arab
Emirates.
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The Exchange proposes to adopt the following per contract
transaction fees for manual executions in MXEA and MXEF, which are
largely based on the fees currently assessed by Cboe Options: \8\
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\8\ See Cboe Options Fee Schedule, available at [sic] (providing
for $0.45 per contract rate for Cboe Options Market-Maker/DPM/LMM
manual transactions in index products; $0.25 per contract rate for
Broker-Dealer manual transaction in index products; $0.25 per
contract rate for Customer manual transactions in MXEA and MXEF). As
further discussed below, the Exchange's proposed fee structure for
transactions in MXEA and MXEF is consistent with Cboe Options' fee
structure except for differences in the pricing programs from which
transactions in MXEA and MXEF are excluded (based on differences
between the programs offered by the Exchange and those offered by
Cboe Options) and the amount of the proposed Index License
Surcharge.
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Rate per contract
Participant Penny/Non-Penny MXEA, MXEF manual
transactions
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Broker-Dealer.................. Penny............. $0.25
Non-Penny......... 0.25
[[Page 16056]]
Customer....................... Penny............. 0.25
Non-Penny......... 0.25
DOMM........................... Penny............. N/A
Non-Penny......... N/A
e-Specialist................... Penny............. 0.45
Non-Penny......... 0.45
Firm........................... Penny............. 0.25
Non-Penny......... 0.25
Firm Facilitation.............. Penny............. N/A
Non-Penny......... N/A
NYSE American Options Market Penny............. 0.45
Maker.
Non-Penny......... 0.45
Non-NYSE American Options Penny............. 0.25
Market Maker.
Non-Penny......... 0.25
Professional Customer.......... Penny............. 0.25
Non-Penny......... 0.25
Specialist..................... Penny............. 0.45
Non-Penny......... 0.45
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The Exchange also proposes to amend Footnotes 3 and 5 of Fee
Schedule Section I.A. ``Rates for Options transactions'' to exclude
MXEA and MXEF: (i) from Marketing Charges applicable to Market Makers
who are counterparties to an electronic trade with a customer; and (ii)
from the per contract surcharge applied to any Non-Customer order that
is not a Simple Order that executes against a Customer order that is
not a Simple Order. The Exchange further proposes to amend Fee Schedule
Sections I and J to exclude transactions in MXEA and MXEF from the Firm
Monthly Fee Cap and Strategy Execution Fee Cap, respectively.
Finally, the Exchange proposes to adopt an Index License Surcharge
of $0.20 per contract for all Non-Customer transactions in MXEA and
MXEF. The proposed Index License Surcharge is likewise based on the
index license surcharge fee assessed by Cboe Options for transactions
in MXEA and MXEF \9\ and reflects costs incurred by the Exchange
related to licensing for purposes of listing and trading EAFE options
and EM options.
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\9\ See Cboe Options Fee Schedule, Surcharge Fee Index License
(applying $0.15 surcharge on transactions in MXEA and MXEF).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\10\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\11\ 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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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4) and (5).
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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.'' \12\
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\12\ 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.\13\ 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 9.03% market share of executed volume of multiply-listed equity and
ETF options trades.\14\ 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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\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 was 6.09% for the month of November 2024 and 9.03% for the
month of January 2026.
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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 the proposed fees for trading in MXEA and
MXEF are reasonable, equitable, and not unfairly discriminatory. As
noted above, the proposed fees are generally based on fees currently
assessed by Cboe Options for trading in EAFE options and EM
options.\15\ The Exchange believes that it is reasonable for the
Exchange to adopt fees largely based on the existing pricing structure
for EAFE options and EM options, which would provide continuity to
market participants trading in these options. The Exchange also
believes that the proposed fees are reasonable because the proposed
fees for manual transactions in MXEA and MXEF are within the range of
fees currently applicable to manual transactions on the Exchange in
other products. Similarly, the proposed
[[Page 16057]]
exclusion of transactions in MXEA and MXEF from certain pricing
programs is consistent with the exclusion of fees related to other
index products traded on the Exchange.\16\ The Exchange also believes
that the proposed Index License Surcharge is reasonable because it is
intended to help recoup some of the costs associated with the license
required to make MXEA and MXEF options available for trading on the
Exchange. The Exchange further believes that the proposed change is
reasonably designed to encourage market participants to continue
trading in MXEA and MXEF once trading in these options begins on the
Exchange and believes that maintaining consistency with the current
Cboe Options pricing structure would facilitate the transition for all
market participants to trading these options on the Exchange. To the
extent the proposed change is effective in encouraging market
participants to maintain or increase their trading activity in MXEA and
MXEF, the Exchange believes the proposed change would improve the
Exchange's overall competitiveness and strengthen its market quality
for all market participants.
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\15\ See notes 8 & 9 supra.
\16\ See Fee Schedule, FIRM MONTHLY FEE CAP (excluding Royalty
Fees for KBW Bank Index options from fees that count towards the
Firm and Broker Dealer Monthly Fee Cap); STRATEGY EXECUTION FEE CAP
(excluding Royalty Fees for KBW Bank Index options from calculation
of cap on transaction fees for strategy executions).
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The Exchange believes the proposed rule change is an equitable
allocation of its fees and credits and is not unfairly discriminatory
because the proposed fees are based on the amount and type of business
transacted on the Exchange. Trading in EAFE options and EM options is
voluntary, and all similarly situated market participants would be
subject to the same fee structure, on an equal and non-discriminatory
basis, as proposed. To the extent that the proposed change attracts
increased order flow to the Exchange, it would continue to make the
Exchange a more competitive venue for, among other things, order
execution, thereby improving market quality 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.'' \17\
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\17\ See Reg NMS Adopting Release, supra note 12, at 37499.
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Intramarket Competition. The proposed change is designed to
facilitate trading in EAFE options and EM options on the Exchange and
to promote continuity for market participants by maintaining general
consistency with the existing fee structure on Cboe Options for trading
in MXEA and MXEF. The proposed fees would apply to all similarly
situated market participants that trade EAFE options and EM options,
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.\18\ 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 9.03% market share of executed volume of multiply-
listed equity and ETF options trades.\19\
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\18\ 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>.
\19\ 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 was 6.09% for the month of November 2024 and 9.03% for the
month of January 2026.
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The Exchange believes that the proposed rule change reflects this
competitive environment because it adopts fees for trading in EAFE
options and EM options generally based on Cboe Options' fees, thereby
modifying the Exchange's fees in a manner designed to encourage market
participants to maintain or increase trading activity in such options
once they transition to list and trade on the Exchange. To the extent
that market participants continue to trade in MXEA and MXEF on the
Exchange, all Exchange market participants stand to benefit from
increased order flow and additional trading opportunities on the
Exchange. 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) \20\ of the Act and subparagraph (f)(2) of Rule
19b-4 \21\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\20\ 15 U.S.C. 78s(b)(3)(A).
\21\ 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) \22\ of the Act to determine whether the proposed
rule
[[Page 16058]]
change should be approved or disapproved.
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\22\ 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#4230372e276f212d2f2f272c3631023127216c252d34"><span class="__cf_email__" data-cfemail="fc8e899099d19f9391919992888fbc8f999fd29b938a">[email protected]</span></a>. Please include
file number SR-NYSEAMER-2026-23 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-2026-23. 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-2026-23 and should be submitted
on or before April 21, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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\23\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-06157 Filed 3-30-26; 8:45 am]
BILLING CODE 8011-01-P
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