Notice2026-15926
Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Options Regulatory Fee (ORF)
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
August 6, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 150 (Thursday, August 6, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 150 (Thursday, August 6, 2026)]
[Notices]
[Pages 50898-50901]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-15926]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106031; File No. SR-NYSEAMER-2026-69]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Options Regulatory Fee (ORF)
August 3, 2026.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on July 29, 2026, NYSE American LLC (``NYSE American'' or
the ``Exchange'') filed with the Securities and Exchange
[[Page 50899]]
Commission (the ``Commission'') a proposed rule change as described in
Items I and II 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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the NYSE American Options Fee
Schedule (``Fee Schedule'') regarding the Options Regulatory Fee
(``ORF''). 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 Exchange recently adopted a new methodology, effective July 1,
2026, for the assessment and collection of the ORF that assesses ORF
only for options transactions that occur on the Exchange and that are
cleared in the Customer range at The Options Clearing Corporation
(``OCC''), in alignment with other options exchanges.\4\ The purpose of
this filing is to amend the Fee Schedule to (1) make non-substantive
changes to the rule text describing the new ORF methodology to promote
consistency with the language adopted by other options exchanges
describing the same, and (2) in connection with the implementation of
the new ORF methodology (as described in the ORF Methodology Filing),
specify the ORF rate that will be in effect through August 31, 2026,
and the rate that will take effect on September 1, 2026.\5\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 105071 (March 24,
2026), 91 FR 14884 (March 27, 2026) (SR-NYSEAMER-2026-22) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Adopt a New Methodology for Assessment and Collection of the Options
Regulatory Fee (ORF)) (the ``ORF Methodology Filing'').
\5\ The Exchange originally filed to amend the Fee Schedule to
specify the ORF Rate on July 1, 2026 (SR-NYSEAMER-2026-57). SR-
NYSEAMER-2026-57 was withdrawn on July 15, 2026 and replaced by SR-
NYSEAMER-2026-66. SR-NYSEAMER-2026-66 was withdrawn on July 29,
2026, and replaced with this filing.
---------------------------------------------------------------------------
Background
As a general matter, the Exchange may only use regulatory funds
such as the ORF ``to fund the legal, regulatory, and surveillance
operations'' of the Exchange.\6\ More specifically, the ORF is designed
to recover a material portion, but not all, of the Exchange's costs for
the supervision and regulation of ATP Holders' Customer options
business, including the Exchange's regulatory program and legal
expenses associated with Customer options regulation, such as the costs
related to in-house staff, third-party service providers, and
technology that facilitate regulatory functions such as surveillance,
investigation, examinations, and enforcement (collectively, the ``ORF
Costs''). ORF Costs may also include indirect expenses such as human
resources and other administrative costs related to the supervision and
regulation of Customer activity. The Exchange monitors the amount of
ORF collection to ensure that this amount, in combination with other
regulatory fees and fines, does not exceed regulatory costs.
---------------------------------------------------------------------------
\6\ The Exchange considers surveillance operations part of
regulatory operations. The limitation on the use of regulatory funds
also provides that they shall not be distributed. See Thirteenth
Amended and Restated Operating Agreement of NYSE American LLC,
Article IV, Section 4.05 and Securities Exchange Act Release No.
87993 (January 16, 2020), 85 FR 4050 (January 23, 2020) (SR-
NYSEAMER-2020-04).
---------------------------------------------------------------------------
All options transactions must clear via a clearing firm, and such
clearing firms can then choose to pass through all, a portion, or none
of the cost of the ORF to its Customers, i.e., the entering firms. The
Exchange notes that the ORF Costs relating to monitoring ATP Holders
with respect to Customer trading activity are generally higher than the
regulatory costs associated with monitoring ATP Holders that do not
engage in Customer trading activity, which tends to be more automated
and less labor-intensive. By contrast, regulating ATP Holders that
engage in Customer trading activity is generally more labor-intensive
and requires a greater expenditure of human and technical resources as
the Exchange needs to review not only the trading activity on behalf of
Customers, but also the ATP Holder's relationship with its Customers
via more labor-intensive exam-based programs.\7\ As a result, the ORF
Costs associated with administering the Customer component of the
Exchange's overall regulatory program are materially higher than the
costs associated with administering the non-Customer component (e.g.,
ATP Holder proprietary transactions) of its regulatory program.
---------------------------------------------------------------------------
\7\ The Exchange notes that many of the Exchange's market
surveillance programs require the Exchange to look at and evaluate
activity across all options markets, such as surveillance for
position limit violations, manipulation, front-running, and contrary
exercise advice violations/expiring exercise declarations. The
Exchange and other options SROs are parties to a 17d-2 agreement
allocating among the SROs regulatory responsibilities relating to
compliance by the common members with rules for expiring exercise
declarations, position limits, OCC trade adjustments, and Large
Option Position Report reviews. See, e.g., Securities Exchange Act
Release No. 85097 (February 11, 2019), 84 FR 4871 (February 19,
2019).
---------------------------------------------------------------------------
As set forth in the ORF Methodology Filing, effective July 1, 2026,
ORF will be assessed only for executions that occur on the Exchange.
Specifically, the ORF will be collected by OCC on behalf of the
Exchange from ATP Holders and non-ATP Holders for all Customer
transactions executed on the Exchange. ORF will be assessed and
collected on all ultimately cleared Customer contracts, taking into
account adjustments for CMTA that were provided to the Exchange the
same day as the trade.\8\ Further, the Exchange would bill ORF
according to the clearing instructions provided on the execution. The
Exchange proposes to assess ORF based on the clearing instruction
provided on the execution on trade date and would not take into
consideration CMTA changes or transfers that occur at OCC.\9\
---------------------------------------------------------------------------
\8\ Adjustments to CMTA that occur at OCC would not be taken
into account. CMTA transfers that occur at OCC do not necessarily
contain reliable information regarding the exchange on which the
original transaction occurred, and without specific information as
to where such transaction occurred, the Exchange would not be able
to accurately account for CMTA transfers that occur at OCC.
Accordingly, the Exchange proposes to only account for CMTAs that
occur on the Exchange and exclude CMTAs occurring at OCC, consistent
with other options exchanges' proposals.
\9\ Adjustments that were made the same day as the trade on the
Exchange will be taken into account.
---------------------------------------------------------------------------
Because the ORF is based on options transactions volume, the amount
of ORF collected is variable. For example, if options transactions
reported to OCC in a given month increase, the ORF collected from ATP
Holders will likely increase as well. Similarly, if options
transactions reported to OCC in a given month decrease, the ORF
collected from ATP Holders will likely decrease as well. Accordingly,
the Exchange monitors the amount of ORF collected
[[Page 50900]]
to ensure that it does not exceed a material portion of ORF Costs. If
the Exchange determines the amount of ORF collected exceeds or may
exceed a material portion of ORF Costs, the Exchange will, as
appropriate, adjust the ORF by submitting a fee change filing to the
Securities and Exchange Commission (the ``Commission''). The Exchange
will provide at least 30 days' notice to ATP Holders of any change to
the ORF by Trader Update.
Proposed Rule Change
The Exchange proposes to amend the Fee Schedule to make non-
substantive changes to the description of the new ORF methodology to
conform with the language used by other options exchanges to describe
the same. The Fee Schedule currently includes the following description
of the new ORF methodology, as adopted in the ORF Methodology Filing:
The ORF is assessed by the Exchange for options transactions
cleared by OCC in the customer range for executions that occur on
the Exchange. Specifically, the ORF is collected by OCC on behalf of
the Exchange from ATP Holders and non-ATP Holders for all customer
transactions executed on the Exchange. The Exchange will notify
participants via Trader Update of any change in the amount of the
fee at least 30 calendar days prior to the effective date of the
change.
The Exchange proposes to replace that description with the
following text:
The per contract ORF is assessed by the Exchange on each side of
an options transaction cleared by the OCC in the customer range for
executions that occur on the Exchange. The ORF is collected by the
OCC on behalf of the Exchange from either an ATP Holder that was the
clearing firm for the transaction or a non-ATP Holder that was the
clearing firm where an ATP Holder was the executing firm for the
transaction.
This proposed change does not propose any substantive change to the
methodology itself; it is intended only to promote consistency between
the Exchange's Fee Schedule and that of other options exchanges with
respect to the description of the new ORF methodology that has been
adopted by all options exchanges, to alleviate potential confusion
among market participants interpreting the various exchange fee
schedules.
The Exchange also proposes to amend the Fee Schedule to set the ORF
rate under the new ORF methodology. Prior to the Exchange's initial
filing on July 1, 2026, the ORF rate was $0.0026 per contract.
Effective July 1, 2026, in connection with the calculation of ORF
pursuant to the new ORF methodology, the Exchange proposed to set the
ORF rate at $0.0160 per contract.\10\ This proposed change was based on
the Exchange's review of ORF Costs, ORF collections, and options
transaction volume, as well as the Exchange's projections with respect
to regulatory costs, ORF collections, and options transaction volume
going forward under the new ORF methodology that all options exchanges
are adopting for the first time.
---------------------------------------------------------------------------
\10\ On June 1, 2026 (which was at least 30 calendar days prior
to the July 1, 2026 operative date), the Exchange notified ATP
Holders of the change to the ORF methodology and proposed ORF rate
via Trader Update to afford market participants sufficient
opportunity to configure their systems to account for the upcoming
ORF changes. See <a href="https://www.nyse.com/trader-update/history#110000957172">https://www.nyse.com/trader-update/history#110000957172</a>.
---------------------------------------------------------------------------
Subsequent to its initial filing, the Exchange became aware of a
significant reduction in its anticipated regulatory costs due to an
internal structural change. As a result, using the criteria noted
above, the Exchange has determined that, at this time, a lower rate is
more appropriate to ensure that ORF collection does not exceed
regulatory costs. Accordingly, the Exchange now proposes to set the ORF
rate at $0.0050, effective September 1, 2026.\11\
---------------------------------------------------------------------------
\11\ As it did with the initial fee proposal, the Exchange will
provide at least 30 days' notice to ATP Holders of the proposed rate
via Trader Update.
---------------------------------------------------------------------------
The proposed change to the ORF rate was, and is, based on the
Exchange's analysis using the information currently available, but the
Exchange cannot predict whether options volumes will remain at these
levels going forward and projections for ORF Costs are estimated,
preliminary, and may change. The Exchange believes that the proposed
change would set the ORF rate at an appropriate level to help ensure
that the ORF collection, in combination with other regulatory fees and
fines, does not exceed the Exchange's regulatory costs.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) \12\ of the Act, in general, and
Section 6(b)(4) and (5) \13\ of the Act, in particular, in that it is
designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among its members and other persons using its
facilities and does not unfairly discriminate between customers,
issuers, brokers, or dealers.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes the proposed change to adopt a description of
the new ORF methodology that more closely conforms to that used by
other options exchanges is reasonable, equitable, and not unfairly
discriminatory. As noted above, the proposed change is not intended to
effect any substantive changes to the methodology itself, as adopted in
the ORF Methodology Filing, and is intended only to encourage
consistency between the Exchange's Fee Schedule and that of other
options exchanges with respect to the description of the new ORF
methodology that has been adopted by all options exchanges. The
proposed change is designed to help reduce potential confusion from
market participants seeking to understand different exchange fee
schedules. The Exchange also believes that the proposed change is
equitable and not unfairly discriminatory because the revised
description of the ORF methodology (like the current description) would
continue to apply equally to all similarly situated market participants
subject to the ORF.
The Exchange also believes the proposed change to amend the ORF
rate in connection with the implementation of the new ORF methodology
is reasonable, equitable, and not unfairly discriminatory. The Exchange
believes the proposed new ORF rate is reasonable because it is designed
to help ensure that collections from the ORF do not exceed a material
portion of the Exchange's ORF Costs, based on the Exchange's recent
review, analysis, and projections of regulatory costs, ORF collections,
and options transaction volume both historically and going forward
under the new ORF methodology that all options exchanges are adopting
for the first time. As noted above, the proposed change to the ORF rate
is based on information currently available to the Exchange. Although
the Exchange cannot predict whether options volumes will remain at
these levels going forward and projections for future regulatory costs
are estimated, preliminary, and may change, the Exchange believes that
the proposed change would set the ORF rate at an appropriate level to
help ensure that ORF collection, in combination with other regulatory
fees and fines, does not exceed regulatory costs. The Exchange further
believes that the proposed new ORF rate is equitable and not unfairly
discriminatory because it would apply equally to all similarly situated
market participants as described in the ORF Methodology Filing. The
Exchange has also provided all ATP Holders with the appropriate 30
days' advance notice of the planned change to the ORF rate.
[[Page 50901]]
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
Intramarket Competition. The Exchange believes the proposed change
would not impose an undue burden on intramarket competition because the
proposed revisions to the description of the new ORF methodology are
intended only to conform the language in the Fee Schedule with that
used in other options exchanges' fee schedules, to help reduce
potential confusion among market participants. The proposed change to
the ORF rate also would not impose an undue burden on intramarket
competition because, pursuant to the new ORF methodology, the ORF will
be collected by OCC on behalf of the Exchange from ATP Holders and non-
ATP Holders for all Customer transactions executed on the Exchange, and
the proposed ORF rate is designed to help ensure that collections from
the ORF do not exceed a material portion of the Exchange's ORF Costs.
Because the ORF is charged to all ATP Holders and non-ATP Holders on
all of their transactions that clear in the Customer range at the OCC,
the amount of ORF imposed is based on the amount of Customer volume
transacted.
Intermarket Competition. The proposed change is not designed to
address any competitive issues. Rather, the proposed change with
respect to the ORF rate is designed to help the Exchange adequately
fund its regulatory activities while seeking to ensure that total
collections from regulatory fees do not exceed total regulatory costs,
and the proposed change with respect to the Fee Schedule language
describing the new ORF methodology is intended to promote consistency
among the fee schedules of the various options exchanges.
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 has become effective pursuant to Section
19(b)(3)(A) of the Act \14\ and paragraph (f) of Rule 19b-4 \15\
thereunder. 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.
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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#99ebecf5fcb4faf6f4f4fcf7edead9eafcfab7fef6ef"><span class="__cf_email__" data-cfemail="c8babda4ade5aba7a5a5ada6bcbb88bbadabe6afa7be">[email protected]</span></a>. Please include
file number SR-NYSEAMER-2026-69 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-2026-69. 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-2026-69 and should be submitted
on or before August 27, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-15926 Filed 8-5-26; 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 August 6, 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.