Notice2026-11141

Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the NYSE American Options Fee Schedule Regarding Fees and Rebates Applicable to Manual Transactions

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Published
June 4, 2026

Issuing agencies

Securities and Exchange Commission

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<title>Federal Register, Volume 91 Issue 107 (Thursday, June 4, 2026)</title>
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[Federal Register Volume 91, Number 107 (Thursday, June 4, 2026)]
[Notices]
[Pages 33848-33851]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11141]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-105589; File No. SR-NYSEAMER-2026-44]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Modify 
the NYSE American Options Fee Schedule Regarding Fees and Rebates 
Applicable to Manual Transactions

June 1, 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 19, 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 modify the NYSE American Options Fee 
Schedule (``Fee Schedule'') regarding fees and rebates applicable to 
Manual transactions. 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

[[Page 33849]]

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 Manual transactions. Specifically, the 
Exchange proposes to (1) amend fees applicable to Manual transactions 
in non-Penny issues executed by e-Specialists, Market Makers, and 
Specialists (collectively, ``Market Makers''), 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 May 19, 2026.\4\
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    \4\ The Exchange previously filed to amend the Fee Schedule on 
January 2, 2026 (SR-NYSEAMER-2026-01), then withdrew such filing and 
amended the Fee Schedule on January 16, 2026 (SR-NYSEAMER-2026-04), 
then withdrew such filing and amended the Fee Schedule on January 
28, 2026 (SR-NYSEAMER-2026-08), then withdrew such filing and 
amended the Fee Schedule on March 10, 2026 (SR-NYSEAMER-2026-19), 
then withdrew such filing and amended the Fee Schedule on April 22, 
2026 (SR-NYSEAMER-2026-32), and then withdrew such filing and 
amended the Fee Schedule on May 6, 2026 (SR-NYSEAMER-2026-38), which 
latter filing the Exchange withdrew on May 19, 2026. The Exchange 
notes that previous versions of this filing proposed changes to a 
complex order surcharge that are not included in this filing.
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    The Exchange proposes to amend Section I.A. of the Fee Schedule, 
which sets forth rates for Electronic and Manual transactions, in both 
Penny and non-Penny issues. Currently, a $0.50 per contract fee applies 
to Market Makers' Manual transactions in non-Penny issues (except for 
Manual transactions in MXEA, MXEF, MXUSA, MXWLD, and MXACW). The 
Exchange proposes to increase this fee to $1.00 per contract.
    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 Section III. E. of the Fee Schedule. The Exchange proposes to add 
new text to Section III.E. of the Fee Schedule describing the proposed 
rebate.
    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 Market Maker fee for 
Manual transactions in non-Penny issues would increase the fee for such 
executions, the Exchange believes the proposed change, taken together 
with the proposed Floor Broker rebate would, on balance, not discourage 
Market Makers from continuing 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. The 
Exchange also notes that the amount of the proposed fee for Market 
Maker Manual transactions in non-Penny issues is within the range of 
fees currently in place for transactions by Market Makers (and other 
market participants) in non-Penny issues.\5\
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    \5\ See, e.g., Fee Schedule, Section I.A., Rates for Options 
transactions (providing for $0.85 fee for Broker-Dealer, Firm, Non-
NYSE American Options Market Maker, and Professional Customer 
electronic transactions in non-Penny issues and $0.95 fee for Market 
Maker electronic transactions in non-Penny issues (inclusive of 
Marketing Charges applicable to such transactions)).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\7\ 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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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4) and (5).
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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.'' \8\
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    \8\ 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.\9\ 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 
9.86% market share of executed volume of multiply-listed equity and ETF 
options trades.\10\ 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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    \9\ 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>.
    \10\ Based on a compilation of OCC data for monthly volume of 
equity-based options and monthly volume of equity-based ETF options, 
see id., the Exchange's market share in equity-based options 
increased from 6.83% for the month of March 2025 to 9.86% 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 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 increase the fee 
applicable to Market Makers' Manual transactions in non-Penny issues, 
Market Makers would not be discouraged from continuing to quote and 
trade actively on the Exchange. The Exchange also believes that the 
amount of the proposed fee for Market Maker Manual transactions in non-
Penny issues is reasonable, as it remains within the range of fees set 
forth in the Fee Schedule for transactions by Market Makers in non-
Penny issues and more closely aligns with the fee applicable to 
electronic transactions by Market Makers in non-Penny issues.

[[Page 33850]]

    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.\11\
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    \11\ 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).
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    The Exchange further believes the proposed change is reasonable 
because it 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 change would not disincentivize 
Market Maker 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. In addition, 
the Exchange notes that market participants are free to conduct 
transactions on competing venues instead if they believe other markets 
offer more favorable fees and credits.
    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 change to the fee applicable to Market 
Maker Manual transactions in non-Penny issues 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. In addition, the proposed fee is within the range of fees 
currently applicable to transactions by Market Makers and other market 
participants in non-Penny issues. 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 modify 
the fee applicable to Market Maker Manual transactions in non-Penny 
issues because the proposed change would apply to all Market Maker 
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 increase the fee 
applicable to Market Maker Manual transactions in non-Penny issues, the 
Exchange notes that the amount of the proposed fee is within the range 
of fees currently applicable to transactions by Market Makers and other 
market participants in non-Penny issues and believes that Market Makers 
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

[[Page 33851]]

of individual stocks for all types of orders, large and small.'' \12\
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    \12\ See Reg NMS Adopting Release, supra note 8, at 37499.
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    Intramarket Competition. The proposed change is designed to attract 
additional order flow to the Exchange. The Exchange believes that the 
proposed change to Market Maker fees for Manual transactions in non-
Penny issues, and the proposed rebate payable to the Floor Broker 
orders that trade against Market Maker orders on the Trading Floor 
would encourage Floor Broker Manual order flow and would not 
disincentivize Market Maker 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 changes 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 
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.\13\ 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 9.86% market share of executed volume of multiply-
listed equity and ETF options trades.\14\
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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 equity-based ETF options, 
see id., the Exchange's market share in equity-based options 
increased from 6.83% for the month of March 2025 to 9.86% for the 
month of March 2026.
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    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) \15\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \16\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 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) \17\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \17\ 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#1d6f687178307e7270707873696e5d6e787e337a726b"><span class="__cf_email__" data-cfemail="f98b8c959cd49a9694949c978d8ab98a9c9ad79e968f">[email&#160;protected]</span></a>. Please include 
file number SR-NYSEAMER-2026-44 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-2026-44. 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-2026-44 and should be submitted 
on or before June 25, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-11141 Filed 6-3-26; 8:45 am]
BILLING CODE 8011-01-P


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