Notice2026-11568
Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Exchange's Fee Schedule Concerning Options Transaction Pricing
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
June 10, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 111 (Wednesday, June 10, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 111 (Wednesday, June 10, 2026)]
[Notices]
[Pages 35281-35283]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11568]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105620; File No. SR-MEMX-2026-15]
Self-Regulatory Organizations; MEMX LLC; Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change To Amend the
Exchange's Fee Schedule Concerning Options Transaction Pricing
June 5, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on May 29, 2026, MEMX LLC (``MEMX'' or the ``Exchange'') filed
with the Securities and Exchange Commission (the ``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing with the Commission a proposed rule change
to amend the Exchange's fee schedule applicable to Members \3\ (the
``Fee Schedule'') pursuant to Exchange Rules 15.1(a) and (c). As is
further described below, the Exchange proposes to amend the MEMX
Options Fee Schedule (the ``Options Fee Schedule'') by eliminating the
Volume Tier 1. The Exchange proposes to implement the changes to the
Options Fee Schedule pursuant to this proposal on June 1, 2026. The
text of the proposed rule change is provided in Exhibit 5.
---------------------------------------------------------------------------
\3\ See Exchange Rule 1.5(p).
---------------------------------------------------------------------------
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 Exchange 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 these 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 aspects of such
statements.
[[Page 35282]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend the Options Fee
Schedule by eliminating the Volume Tier 1.
The Exchange first notes that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. The Exchange is one of only
18 options venues to which market participants may direct their order
flow. Based on publicly available information, no single options
exchange has more than approximately 18.1% of the market share and
currently the Exchange represents only approximately 3.9% of the market
share.\4\ In such a low-concentrated and highly competitive market, no
single options exchange, including the Exchange, possesses significant
pricing power in the execution of option order flow. The Exchange
believes that the ever-shifting market share among the exchanges from
month to month demonstrates that market participants can shift order
flow, discontinue, or reduce use of certain categories of products in
response to fee changes. Accordingly, competitive forces constrain the
Exchange's transaction fees, and market participants can readily trade
on competing venues if they deem pricing levels at those other venues
to be more favorable. The Exchange's Fee Schedule sets forth standard
rebates and rates applied per contract. The Exchange also provides
tiered pricing which provides Members opportunities to qualify for
higher rebates where certain volume criteria and thresholds are met.
---------------------------------------------------------------------------
\4\ Market share percentage calculated as of May 21, 2026. The
Exchange receives and processes data made available through the
consolidated data feeds (i.e., OPRA).
---------------------------------------------------------------------------
Currently, the Exchange offers the Volume Tier 1, which provides
Members an enhanced rebate for executions of contracts that add
liquidity in options where the underlying security is in the Penny
Interval Program (``Penny options'') \5\ that are made in a
Professional \6\ capacity (``Added Professional Penny Volume'').
Specifically, under this tier, the Exchange provides an enhanced rebate
of $0.47 per contract for executions of Added Professional Penny Volume
for Members that qualify for Volume Tier 1 by achieving an ADAV \7\ in
the Customer,\8\ Professional,\9\ Firm,\10\ Away Market Maker,\11\ and/
or Broker-Dealer \12\ capacities in Penny symbols that is equal to or
greater than 0.125% of the equity and ETF option TCV.\13\ Now, the
Exchange proposes to eliminate this tier, as the Exchange no longer
wishes to, nor is required to, maintain such tiered pricing.
---------------------------------------------------------------------------
\5\ MEMX Options provides Fee Code ``P'' for transactions in
Penny options. Fee Codes are provided by the Exchange on the monthly
invoices provided to Options Members.
\6\ As set forth on the Fee Schedule, ``Professional'' applies
to any order for the account of a Professional. The term
``Professional'' means any person or entity that (A) is not a broker
or dealer in securities; and (B) places more than 390 orders in
listed options per day on average during a calendar month for its
own beneficial account(s). All Professional orders shall be
appropriately marked by Options Members. See Exchange Rule 16.1.
MEMX Options provides fee qualifier ``p'' for professional
transactions.
\7\ As proposed, the term ``ADAV'' means the average daily added
volume calculated as the number of contracts added per day. ADAV is
calculated on a monthly basis. The Exchange is proposing to add this
definition under the ``Definitions'' section of the Fee Schedule.
\8\ As set forth on the Fee Schedule, ``Customer'' applies to
any order for the account of a Prioroity Customer. ``Priority
Customer'' shall have the meaning set forth in Rule 16.1 of the MEMX
Rulebook.
\9\ As set forth on the Fee Schedule, ``Professional'' applies
to any order for the account of a Professional. The term
``Professional'' means any person or entity that (A) is not a broker
or dealer in securities; and (B) places more than 390 orders in
listed options per day on average during a calendar month for its
own beneficial account(s). All Professional orders shall be
appropriately marked by Options Members. See Exchange Rule 16.1.
MEMX Options provides fee qualifier ``p'' for professional
transactions.
\10\ As set forth on the Fee Schedule, ``Firm'' applies to any
order for the proprietary account of an OCC clearing member. MEMX
Options provides fee qualifier ``f'' for firm transactions.
\11\ As set forth on the Fee Schedule, ``Away Market Maker''
applies to any order for the account of a market maker on another
options exchange. MEMX Options provides fee qualifier ``a'' for away
market maker transactions.
\12\ As set forth on the Fee Schedule, ``Broker Dealer'' applies
to any order for the account of a broker-dealer, including a foreign
broker dealer. MEMX Options provides fee qualifier ``b'' for broker-
dealer transactions.
\13\ As proposed, the term ``TCV'' means the total consolidated
volume calculated as the volume reported by all exchanges to the
consolidated transaction reporting plan for the month for which the
fees apply. The Exchange is also proposing to add this definition
under the ``Definitions'' section of the Fee Schedule.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal to amend the Options Fee
Schedule is consistent with the provisions of Section 6 of the Act,\14\
in general, and with Sections 6(b)(4) and 6(b)(5) of the Act,\15\ in
particular, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among Options Members and other
persons using its facilities. The Exchange also believes the proposal
furthers the objectives of Section 6(b)(5) of the Act in that it is
designed to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general to protect investors and the
public interest and is not designed to permit unfair discrimination
between customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78f.
\15\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
MEMX Options operates in a highly fragmented and competitive market
in which market participants can readily direct order flow to competing
venues if they deem fee levels at a particular venue to be excessive or
incentives to be insufficient, and the Exchange represents only a small
percentage of the overall market. The Commission and the courts have
repeatedly expressed their 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.'' \16\
---------------------------------------------------------------------------
\16\ Securities Exchange Act Release No. 51808 (June 9, 2005),
70 FR 37496, 37499 (June 29, 2005).
---------------------------------------------------------------------------
Accordingly, competitive forces constrain the Exchange's
transaction fees and rebates, and market participants can readily trade
on competing venues if they deem pricing levels at those other venues
to be more favorable. The Exchange believes the proposal to eliminate
the Volume Tier 1 is reasonable because the Exchange is not required to
maintain this rebate nor provide Members an opportunity to receive
enhanced rebates. The Exchange believes its proposal to eliminate this
rebate is equitable and not unfairly discriminatory because it applies
to all Members (i.e., the rebate will no longer be available to any
Member). The proposed rule change merely results in Members not
receiving an enhanced rebate, which, as noted above, the Exchange is
not required to offer or maintain. Further, the proposed rule change to
eliminate the Volume Tier 1 enables the Exchange to redirect resources
and funding into other programs and tiers intended to incentivize
increased order flow. and competitive pricing structure which the
[[Page 35283]]
Exchange believes would promote price discovery and enhance liquidity
and market quality on the Exchange to the benefit of all Members and
market participants.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposal will result in any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. Rather, as discussed above, the
proposal relates to the elimination of a Volume Tier and as such, does
not have any impact on intra- or inter-market competition because the
proposed change is solely designed to accurately reflect the pricing
that the Exchange currently offers, thereby adding clarity to the Fee
Schedule.
Additionally, the Commission has repeatedly expressed its
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. Specifically,
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.'' \17\ The fact
that this market is competitive has also long been recognized by the
courts. In NetCoalition v. SEC, the D.C. Circuit stated as follows:
``[n]o one disputes that competition for order flow is `fierce.' . . .
As the SEC explained, `[i]n the U.S. national market system, buyers and
sellers of securities, and the broker-dealers that act as their order-
routing agents, have a wide range of choices of where to route orders
for execution'; [and] `no exchange can afford to take its market share
percentages for granted' because `no exchange possesses a monopoly,
regulatory or otherwise, in the execution of order flow from broker
dealers'. . . .''.\18\ Accordingly, the Exchange does not believe its
proposed pricing changes impose any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\17\ Id.
\18\ NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSE-2006-21)).
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \19\ and Rule 19b-4(f)(2) \20\ thereunder.
---------------------------------------------------------------------------
\19\ 15 U.S.C. 78s(b)(3)(A)(ii).
\20\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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#4032352c256d232f2d2d252e3433003325236e272f36"><span class="__cf_email__" data-cfemail="6c1e190009410f0301010902181f2c1f090f420b031a">[email protected]</span></a>. Please include
file number SR-MEMX-2026-15 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-MEMX-2026-15. 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 also 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-MEMX-2026-15 and should be submitted on
or before July 1, 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. 2026-11568 Filed 6-9-26; 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 June 10, 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.