Notice2026-09965
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 Adopt Fees Applicable to Trading Options on MXWLD, MXACW, and MXUSA
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Published
May 19, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 96 (Tuesday, May 19, 2026)</title>
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[Federal Register Volume 91, Number 96 (Tuesday, May 19, 2026)]
[Notices]
[Pages 29198-29201]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09965]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105493; File No. SR-NYSEARCA-2026-48]
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 Adopt Fees Applicable to Trading
Options on MXWLD, MXACW, and MXUSA
May 14, 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 May 1, 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
[[Page 29199]]
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 Arca Options Fee Schedule
(``Fee Schedule'') to adopt fees applicable to trading in options that
overlie each of the MSCI World Index (1/100), the full value of the
MSCI ACWI Index, and a reduced value of the MSCI USA Index (1/100). 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 World Index (1/100) (``WORLD 1/100 options'' or
``MXWLD''), the full value of the MSCI ACWI Index (``ACWI options'' or
``MXACWI''[sic]), and a reduced value of the MSCI USA Index (1/100)
(``USA 1/100 options'' or ``MXUSA''). The Exchange recently filed a
proposed rule change to adopt rules to facilitate the transfer and
trading of WORLD 1/100 options, ACWI options and USA 1/100 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 May 1, 2026, the day that trading in WORLD 1/100 options,
ACWI options and USA 1/100 options begins on the Exchange.\5\
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\4\ See Securities Exchange Act Release No. 105194 (April 10,
2026) 91 FR 20187 (April 15, 2026) (SR-NYSEARCA-2026-35) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Facilitate the Transfer and Trading of Options That Overlie a
Reduced Value of the MSCI World Index (1/100), the Full Value of the
MSCI ACWI Index and a Reduced Value of the MSCI USA Index (1/100)).
\5\ See <a href="https://www.nyse.com/trader-update/history#110000956142">https://www.nyse.com/trader-update/history#110000956142</a>.
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The MSCI World Index (1/100) (``WORLD Index (1/100)''), the MSCI
ACWI Index (``ACWI Index'') and the MSCI USA Index (1/100) (``USA Index
(1/100)'') are free float-adjusted market capitalization indexes
calculated by MSCI Inc. (``MSCI''). Specifically,
<bullet> The MSCI World Index (1/100) consists of component stocks
from 23 developed markets.\6\ The MSCI World Index (1/100) consists of
large- and mid-cap components across these markets, has 1,311
constituents, and covers approximately 85% of the free float-adjusted
market capitalization in each country.\7\
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\6\ These developed markets include Australia, Austria, Belgium,
Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland,
Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal,
Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the
United States.
\7\ See MSCI World Index (1/100) fact sheet (dated March 31,
2026), available at MSCI World Index.
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<bullet> The MSCI ACWI Index consists of component stocks from 23
developed markets \8\ and 24 emerging markets.\9\ The MSCI ACWI Index
consists of large- and mid-cap components across these markets, has
2,515 constituents, and covers approximately 85% of the global
investable equity opportunity set.\10\
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\8\ These developed markets include Australia, Austria, Belgium,
Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland,
Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal,
Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the
United States.
\9\ These emerging markets include Brazil, Chile, China,
Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia,
Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar,
Saudi Arabia, South Africa, Taiwan, Thailand, Turkey, and the United
Arab Emirates.
\10\ See MSCI ACWI Index fact sheet (dated March 31, 2026),
available at MSCI ACWI Index.
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<bullet> The MSCI USA Index (1/100) consists of large- and mid-cap
components from the United States, has 538 constituents, and covers
approximately 85% of the free float-adjusted market capitalization in
the United States.\11\
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\11\ See MSCI USA Index (1/100) fact sheet (dated March 31,
2026), available at MSCI USA Index.
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The Exchange proposes to adopt the following per contract
transaction fees for manual executions in MXWLD, MXACW and MXUSA, which
are largely based on the fees currently assessed by Cboe Options:\12\
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\12\ See Cboe Options Fee Schedule, available at
Cboe_FeeSchedule.pdf (providing for $0.10 per contract rate for Cboe
Options Market-Maker/DPM/LMM manual transactions in index products;
$0.20 per contract rate for Broker-Dealer manual transaction in
index products; $0.05 per contract rate for Customer manual
transactions in MXWLD, MXACW and MXUSA).
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Order type Fee
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LMM........................................................ $0.10
NYSE Arca Market Maker..................................... 0.10
Firm and Broker Dealer..................................... 0.20
Professional Customer...................................... 0.05
Customer................................................... 0.05
Firm Facilitation and Broker Dealer facilitating a Customer N/A
or Professional Customer..................................
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Similar to the exclusion of the options overlying the MSCI EAFE
Index (``MXEA'') and the MSCI Emerging Markets Index (``MXEF''), the
Exchange proposes to amend Endnote 19 to provide that the Firm and
Broker Dealer Monthly Fee Cap, Limit of Fees on Options Strategy
Executions, and FB Prepay Program are not applicable to transactions in
MXWLD, MXACW and MXUSA. The Exchange similarly proposes to amend
Endnote 7, which defines the ``Firm Facilitation and Broker Dealer
facilitating a Customer--Manual'' categorization to exclude
transactions in MXWLD, MXACW and MXUSA.
Finally, as with MXEA and MXEF, the Exchange proposes to adopt an
Index License Surcharge of $0.20 per contract for all Non-Customer
transactions in MXWLD, MXACW and MXUSA, which were, likewise, based on
the index license surcharge fee assessed by Cboe Options for
transactions in MXWLD, MXACW and MXUSA \13\ and reflects costs incurred
by the Exchange related to licensing for purposes of listing and
trading WORLD 1/100 options, ACWI options and USA 1/100 options.
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\13\ See Cboe Options Fee Schedule, Surcharge Fee Index License
(applying $0.15 surcharge on transactions in MXWLD, MXACW and
MXUSA).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\14\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\15\ 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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\14\ 15 U.S.C. 78f(b).
\15\ 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
[[Page 29200]]
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.'' \16\
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\16\ 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.\17\ Therefore, currently no exchange possesses significant
pricing power in the execution of multiply-listed equity and ETF
options order flow. More specifically, in March 2026, the Exchange had
10.50% market share of executed volume of multiply-listed equity and
ETF options trades.\18\ 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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\17\ 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>.
\18\ 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 11.28% for the month of March 2025 and 10.50% for the
month of March 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 MXWLD, MXACW
and MXUSA 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 WORLD 1/100 options, ACWI
options and USA 1/100 options.\19\ The Exchange believes that it is
reasonable for the Exchange to adopt fees largely based on the existing
pricing structure for WORLD 1/100 options, ACWI options and USA 1/100
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 MXWLD,
MXACW and MXUSA are within the range of fees currently applicable to
manual transactions and the exclusion of MXWLD, MXACW and MXUSA from
certain pricing programs is consistent with the exclusion of fees
related to other index products traded on the Exchange, most notably
MXEA and MXEF.\20\
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\19\ See notes 12 & 13 supra.
\20\ See also 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 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 MXWLD, MXACW and
MXUSA 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 MXWLD, MXACW and
MXUSA once trading in these options begins on the Exchange and believes
that maintaining consistency with the 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 MXWLD, MXACW and MXUSA, the Exchange believes
the proposed change would improve the Exchange's overall
competitiveness and strengthen its market quality for all market
participants.
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 WORLD 1/100 options, ACWI
options and USA 1/100 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.'' \21\
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\21\ 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 WORLD 1/100 options, ACWI options and USA 1/100
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 MXWLD, MXACW and MXUSA. The
proposed fees would apply to all similarly situated market participants
that trade WORLD 1/100 options, ACWI options and USA 1/100 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
[[Page 29201]]
equity and ETF options trades.\22\ Therefore, currently no exchange
possesses significant pricing power in the execution of multiply-listed
equity and ETF options order flow. More specifically, in March 2026,
the Exchange had 10.50% market share of executed volume of multiply-
listed equity and ETF options trades.\23\
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\22\ 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>.
\23\ 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 11.28% for the month of March 2025 and 10.50% for the
month of March 2026.
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The Exchange believes that the proposed rule change reflects this
competitive environment because it adopts fees for trading in WORLD 1/
100 options, ACWI options and USA 1/100 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 MXWLD, MXACW and MXUSA 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) \24\ of the Act and subparagraph (f)(2) of Rule
19b-4 \25\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\24\ 15 U.S.C. 78s(b)(3)(A).
\25\ 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) \26\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\26\ 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#b3c1c6dfd69ed0dcdeded6ddc7c0f3c0d6d09dd4dcc5"><span class="__cf_email__" data-cfemail="245651484109474b4949414a5057645741470a434b52">[email protected]</span></a>. Please include
file number SR-NYSEARCA-2026-48 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-2026-48. 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-2026-48 and should be submitted
on or before June 9, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
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\27\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-09965 Filed 5-18-26; 8:45 am]
BILLING CODE 8011-01-P
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