Notice2026-16100
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 To Remove MSCI Related Index Options From Certain Tier Discounts and Incentive Programs and Add a Break-Up Credit for Certain Executions in the Customer Best Execution (“CUBE”) Auction
Primary source
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Published
August 7, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 151 (Friday, August 7, 2026)</title>
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[Federal Register Volume 91, Number 151 (Friday, August 7, 2026)]
[Notices]
[Pages 51199-51201]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-16100]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106035; File No. SR-NYSEAMER-2026-68]
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 To Remove MSCI Related Index
Options From Certain Tier Discounts and Incentive Programs and Add a
Break-Up Credit for Certain Executions in the Customer Best Execution
(``CUBE'') Auction
August 4, 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 July 28, 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'') to remove MSCI related Index Options from
certain tier discounts and incentive programs and adding an MSCI
specific break-up credit for executions in the Customer Best Execution
(``CUBE'') Auction to address a billing system limitation in their
removal. The Exchange proposes to implement the fee changes effective
July 28, 2026.\4\ 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.
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\4\ In addition, the Exchange proposes non-substantive changes
to: (i) delete the Market Maker Sliding Scale chart for the first
half of 2026, which will no longer be effective, as of July 1, 2026;
and (ii) adding a ``.'' at the end of the third full sentence of
Footnote 2 of the Complex CUBE Auction chart of Fee Schedule Section
I.G. (``CUBE Auction Fees & Credits'').
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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
[[Page 51200]]
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 proposes to modify the Fee Schedule to remove MSCI
related Index Options from certain tier discounts and incentive
programs and adding an MSCI specific break-up credit for executions in
the CUBE Auction to address a billing system limitation in their
removal.
The Exchange proposes to implement the fee changes effective July
28, 2026.\5\
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\5\ The Exchange originally filed to amend the Fee Schedule on
July 1, 2026 (SR-NYSEAMER-2026-58). SR-NYSEAMER-2026-58 was
withdrawn on July 14, 2026, and replaced by SR-NYSEAMER-2026-64,
which was withdrawn on July 15, 2026 and replaced by SR-NYSEAMER-
2026-65. SR-NYSEAMER-2026-65 was withdrawn on July 28, 2026 and
replaced by this filing.
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Currently, the Exchange lists a number of index options for which
an MSCI index is the underlying security (i.e., MSCI EAFE Index (MXEA),
MSCI Emerging Markets Index (MXEF), MSCI World Index (MXWLD), MSCI ACWI
Index (MXACW) and MSCI USA Index (MXUSA)) (collectively the ``MSCI
Index Options'').
NYSE American Options Market Makers are eligible for reduced per
contract rates for Electronic options transactions based on the Market
Maker's electronic average daily volume as a percentage of the
TCADV.\6\ The Exchange has initiated a plan to remove MSCI products
from the multiply-listed American tier treatment to ultimately create
MSCI-specific tiers consistent with Index product-specific tier
structures employed at other exchanges, such as CBOE's fee structure
regarding Indexes (SPX, VIX, etc.).\7\
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\6\ See Fee Schedule, Section I. Options Transaction Fees and
Credits, A. Rates for Options transactions (Note 2) and C. NYSE
American Options Market Maker Sliding Scale- Electronic.
\7\ See CBOE Fee Schedule at Cboe_FeeSchedule.pdf.
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As an initial step, the Exchange proposes to exclude MSCI Index
Options from following fees, credits, rebates and incentive programs:
<bullet> A reduction from $0.12 to $0.10 of the per contract
surcharge applied to any Electronic Non-Customer Complex Order that
executes against a Customer Complex Order for ATP Holders that achieve
at least 0.20% of TCADV of Electronic Non-Customer Complex Orders in a
month; \8\
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\8\ See Fee Schedule proposed, Section I. Options Transaction
Fees and Credits, A. Rates for Options transactions, Note 5.
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<bullet> a Non-Penny Rate of $0.80 per contract for Electronic
transactions in the Professional range (as defined in Section I.H.) for
ATP Holders that achieve Tier 3 or higher in the American Customer
Engagement Program (outlined in Section I.E.); \9\
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\9\ See Fee Schedule proposed Section I. Options Transaction
Fees and Credits, A. Rates for Options transactions, Note 8.
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<bullet> Per contract credits under the American Customer
Engagement (``ACE'') Program; \10\
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\10\ See Fee Schedule proposed Section I. Options Transaction
Fees and Credits, E. American Customer Engagement (``ACE'') Program.
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<bullet> Credits payable to the Initiating Participant for each
contract in a Contra Order paired with a CUBE Order that does not trade
with the CUBE Order because it is replaced in the auction, the ACE
Initiating Participant Rebate and the ATP Holder Professional Volume
Incentive Initiating Participant Rebate related to the Single-Leg CUBE
Auction, Complex CUBE Auction, and the AON Single Leg/AON Complex CUBE
Auction; \11\
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\11\ See Fee Schedule proposed Section I. Options Transaction
Fees and Credits, G. CUBE Auction Fees and Credits, Single-Leg CUBE
Auction, Complex CUBE Auction AON Single-Leg or AON Complex CUBE
Auction, tables Notes 1 through 3.
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<bullet> Professional Volume Incentive in which ATP Holders that
achieve Electronic volume in the Professional range are eligible to
receive discounted rates on their total monthly Professional Volume and
credits on their monthly Customer Electronic volume; \12\ and
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\12\ See Fee Schedule proposed Section I. Options Transaction
Fees and Credits, H. Professional Volume Incentive.
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<bullet> Credit via the ACE Program for initiating orders via the
Broadcast Over Liquidity Deliver (``BOLD'') Mechanism.\13\
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\13\ See Fee Schedule proposed Section I. Options Transaction
Fees and Credits, M. BOLD Mechanism Fees & Credits.
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In addition, the Exchange proposes to introduce a $0.60 break up
credit across all CUBE Auctions to address a billing system limitation
that prevents the MSCI Index Options from being excluded from the
existing break-up credit tier treatment.\14\ The proposed credit
($0.60) is in line with break up credits for existing multi-list Non-
Penny equity options, which ranges from $0.50 to $0.75.\15\
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\14\ See Fee Schedule proposed Section I. Options Transactions
Fees and Credits, G. CUBE Auction Fees & Credits.
\15\ See Fee Schedule (i) page 16, Single-Leg CUBE Auction
``Initiating Participant Credit--Non-Penny credit $0.60 per contract
credit with $0.70 tier; (ii) page 18-19 Professional Volume
Incentive Initiating Participant Rebate--All Users Comple CUBE
breakup non-penny tiers of $0.50-&0.75; and (iii) page 19,
Initiating Participant Non-Penny credit of $0.70 for AON Single-Leg
or AON Complex CUBE Auction.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\16\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\17\ 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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\16\ 15 U.S.C. 78f(b).
\17\ 15 U.S.C. 78f(b)(4) and (5).
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As a threshold matter, the Exchange is subject to significant
competitive forces in the market for options securities transaction
services that constrain its pricing determinations in that 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.'' \18\
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\18\ 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.\19\ Therefore, currently no exchange possesses significant
pricing power in the execution of multiply-listed equity and ETF
options order flow. More specifically, in May 2026, the Exchange had
10.37% market share of executed volume of multiply-listed equity and
ETF options order flow. In such a low
[[Page 51201]]
concentrated and highly competitive market, no single options exchange
possesses significant pricing power in the execution of option order
flow.
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\19\ The OCC publishes options and futures volume in a variety
of formats, including daily and monthly volume by exchange,
available at: <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>.
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The Exchange believes that the removal of MSCI Index Options from
certain credit tiers and incentive programs is reasonable, equitable,
and not unfairly discriminatory. Their removal 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 OTP Holders and OTP Firms. Moreover,
the removal is the first stage of a longer term plan to create MSCI
tiers so as to be consistent with the index tiers of other options
exchanges.
In addition, the proposed break up credit is likewise reasonable,
equitable, and not unfairly discriminatory in that, as noted above, it
is consistent with break up credits for existing multi-list Non-Penny
equity options, which range from $0.50 to $0.75.\20\
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\20\ See Fee Schedule supra, Note 14.
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Finally, the removal of MSCI Index Options from certain tiers and
the breakup credit will apply equally to all affected market
participants. As for MSCI Index Options, trading in them 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.
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.
Intramarket Competition. The Exchange believes that the proposed
removal of MSCI Index Options from certain credit tiers and the breakup
credit would not affect intramarket competition because, as noted
above, it would impact all market participants equally and, therefore,
would not impose a disparate burden on competition among market
participants on the Exchange.
Intermarket Competition. The Exchange believes that the removal of
the MSCI Index Options from certain tier credits and incentive programs
would not affect intermarket competition. As noted above, the Exchange
operates in a highly competitive market in which the Exchange must
continually adjust its fees and rebates to remain competitive with
other exchanges and to attract order flow to the Exchange. Moreover,
the removal is the first stage of a longer term plan to create MSCI
tiers so as to be consistent with the index tiers of other 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 is effective upon filing pursuant to
Section 19(b)(3)(A) \21\ of the Act and subparagraph (f)(2) of Rule
19b-4 \22\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\21\ 15 U.S.C. 78s(b)(3)(A).
\22\ 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) \23\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\23\ 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#186a6d747d357b7775757d766c6b586b7d7b367f776e"><span class="__cf_email__" data-cfemail="196b6c757c347a7674747c776d6a596a7c7a377e766f">[email protected]</span></a>. Please include
file number SR-NYSEAMER-2026-68 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-2026-68. 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-2026-68 and should be submitted
on or before August 28, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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\24\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-16100 Filed 8-6-26; 8:45 am]
BILLING CODE 8011-01-P
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