Notice2026-19638
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the NYSE Arca Options Fee Schedule To Modify the Broker QCC Credit and Manual Billable Rebate Program
Primary source
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Published
September 25, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 185 (Friday, September 25, 2026)</title>
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[Federal Register Volume 91, Number 185 (Friday, September 25, 2026)]
[Notices]
[Pages 61006-61009]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19638]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106465; File No. SR-NYSEARCA-2026-98]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the NYSE
Arca Options Fee Schedule To Modify the Broker QCC Credit and Manual
Billable Rebate Program
September 22, 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 September 14, 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
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'') by modifying the credit available to brokers
submitting Qualified Contingent Cross (``QCC'') transactions and the
Manual Billable Rebate Program that is part of the Floor Broker Fixed
Cost Prepayment Incentive Program (the ``FB Prepay Program''). The
Exchange proposes to implement the fee changes effective September 14,
2026. 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 proposes to amend the NYSE Arca Options Fee Schedule
(``Fee Schedule'') by modifying the credit available to brokers
submitting QCC transactions and the Manual Billable Rebate Program that
is part of the FB Prepay Program. The Exchange proposes to implement
the fee changes effective September 14, 2026.\4\
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\4\ The Exchange originally filed to amend the Fee Schedule on
September 1, 2026 (SR-NYSEARCA-2026-90). SR-NYSEARCA-2026-90 was
withdrawn on September 14, 2026, and replaced by this filing.
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Submitting Broker QCC Credits
The Exchange offers submitting brokers a per contract credit of
$0.16 for customer vs. non-customer electronic QCC transactions, and a
per contract credit of $0.22 for non-customer vs. non-customer
electronic QCC
[[Page 61007]]
transactions.\5\ In addition, the Exchange offers additional, per
contract, submitting broker credits based upon volume as set forth in
the following chart: \6\
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\5\ See Fee Schedule NYSE Arca OPTIONS: TRADE-ELATED CHARGES FOR
STANDARD OPTIONS, QUALIFIED CONTINTINGENT CROSS (``QCC'')
TRANSACTION FEES AND CREDITS.
\6\ See Fee Schedule NYSE Arca OPTIONS: TRADE-RELATED CHARGES
FOR STANDARD OPTIONS, TRANSACTION FEE FOR ELECTRONIC EXECUTIONS--PER
CONTRACT.
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Customer vs. Non-customer
non-customer vs. non-
Tier Qualifying volume QCC customer QCC
transaction transaction
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QCC Tier 1.................................... Achieve 1.5 million QCC ($0.01) ($0.03)
contracts per month.
QCC Tier 2.................................... Achieve 3.5 million QCC (0.02) (0.08)
contracts per month.
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The Exchange proposes to amend the additional submitting broker QCC
credit for both customer vs. non-customer QCC transactions and non-
customer vs. non-customer QCC transactions by lowering the qualifying
volumes: (i) 1.5 million QCC contracts to 1 million QCC contracts for
Tier 1; and (ii) 3.5 million QCC contracts to 3 million for Tier 2. The
Exchange also proposes to lower the available Tier 1 credit for non-
customer vs. non-customer QCC contracts from $0.03 per contract to
$0.01 per contract.
While the overall credit available to submitting brokers for non-
customer vs. non-customer QCC transactions who achieve more than 1
million contracts per month will be lowered from $0.25 to $0.23, such
brokers will be entitled to the Tier 2 credit of ($0.08) earlier (i.e.,
upon achieving 3 million contracts per month, rather than 3.5 million).
Also, for customer vs. non-customer QCC transactions, submitting
brokers will be entitled to both the existing Tier 1 credit of ($0.01)
and the Tier 2 credit of ($0.02) earlier (i.e., upon achieving 1
million contracts and 3 million contracts per month, rather than 1.5
million and 3.5 million, respectively). Thus, the Exchange believes
that the credit structure for QCC transactions will continue to
incentivize market participants in directing QCC transactions to the
Exchange and, perhaps, increase such activity by making both a slightly
modified Tier 1 and the existing Tier 2 credits more easily accessible.
The Exchange further believes that such increased activity will
benefit all market participants, as the enhanced credit structure could
promote market depth, price discovery and improvement, and enhanced
order execution opportunities.
Manual Billable Rebate Program
Floor Brokers that participate in the FB Prepay Program are
eligible for rebates under the Manual Billable Rebate Program, payable
monthly on transactions where at least one side is subject to manual
transaction fees.\7\
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\7\ See Fee Schedule NYSE Arca OPTIONS: TRADE-RELATED CHARGES
FOR STANDARD OPTIONS, FLOOR BROKER FIXED COST PREPAYMENT INCENTIVE
PROGRAM (the ``FB PREPAY PROGRAM'').
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The Manual Billable Rebate Program provides a base rebate of $0.08
per billable side on manual billable volume. Floor Brokers that achieve
more than 500,000 manual billable sides in a month are eligible for an
additional $0.02 per billable side, payable retroactively to the first
billable side.
Additional rebates are also available under the Manual Billable
Rebate Program. Floor Brokers that achieve the aforementioned QCC Tier
2 may also earn the greater of: (i) $0.01 per billable side if the
Floor Broker executes at least 10% of the QCC Tier 2 volume requirement
in manual billable sides; or (ii) $0.02 per billable side if the Floor
Broker executes at least 20% of the QCC Tier 2 volume requirement in
manual billable sides. To maintain the same thresholds given the
proposed changes to the requirements of QCC Tier 1 and QCC Tier 2, the
Exchange proposes non-substantive changes to this section of the
program. Specifically, Floor Brokers that exceed the new QCC Tier 2 by
500,000 QCC contracts would earn the greater of: (i) $0.01 per billable
side if the Floor Broker executes at least 35% of the new QCC Tier 1
volume requirement in manual billable sides; or (ii) $0.02 per billable
side if the Floor Broker executes at least 70% of the new QCC Tier 1
volume requirement in manual billable sides. This is a non-substantive
change in that it does not change eligibility standards or the amount
of the rebate available to participants.
The Exchange proposes similar non-substantive changes to the
requirements for an additional rebate of $0.01 per manual billable side
and an additional rebate of $0.01 per non-customer vs. non-customer QCC
contract. Currently, these rebates are earned when FB Prepay Program
participants exceed the aggregate of the QCC Tier 1 and QCC Tier 2
qualifications in combined manual billable and QCC billable contracts.
Under the proposal, Floor Brokers that exceed the aggregate QCC Tier 1
and QCC Tier 2 qualifications by an additional 1 million combined
manual billable and QCC billable contracts would receive these
additional rebates. This is a non-substantive change in that it does
not change eligibility standards or the amount of the rebate available
to participants.
These proposed changes are not substantive, as they do not alter
the eligibility standards for the relevant additional rebates under the
FB Prepay Program or, more specifically, the Manual Billable Rebate
Program. The rebates, which were established to incentivize Floor
Brokers to direct their order flow to the Exchange, including in QCC
contracts, will continue to function as intended by increasing
liquidity to the benefit of all market participants. Such increased
liquidity could promote market depth, price discovery and improvement,
and enhance order execution opportunities for all market participants.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\8\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\9\ 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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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4) and (5).
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[[Page 61008]]
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.'' \10\
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\10\ 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 [sic] 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.\11\ Therefore, currently no exchange possesses significant
pricing power in the execution of multiply-listed equity and ETF
options order flow. More specifically, in July 2026, the Exchange had
10.01% market share of executed volume of multiply-listed equity and
ETF options order flow. In such a low concentrated and highly
competitive market, no single options exchange possesses significant
pricing power in the execution of option order flow.
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\11\ 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 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. In response to this
competitive marketplace, the Exchange proposes to adjust its submitting
broker QCC credit structure and make corresponding changes to its
Manual Billable Rebate Program to create more trading opportunities on
the Exchange for all market participants. Greater liquidity benefits
all market participants on the Exchange and increased order flow would
increase opportunities for execution of other trading interest.
The Exchange also believes the adjustments are an equitable
allocation of its fees and credits because it is based on the amount
and type of business transacted on the Exchange. The Exchange further
believes that the changes do not unfairly discriminate against market
participants. All brokers can try to earn the proposed credit for
submitting QCC order and Floor Brokers can avail themselves to manual
rebates, if they want. The credit and the rebate are intended to
attract more activity to the Exchange. This increased order flow would
continue to make the Exchange a more competitive venue. Thus, the
Exchange believes the proposed rule change would improve market quality
for all market participants on the Exchange and, accordingly, attract
more order flow to the Exchange thereby improving market-wide quality
and price discovery.
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 credit adjustment and corresponding
changes to its Manual Billable Rebate Program are designed to attract
order flow to the Exchange and would apply equally to all similarly
situated market participants and encourage robust liquidity to the
benefit of all market participants. All brokers can try to earn the
proposed credit for submitting QCC orders and Floor Brokers can avail
themselves to manual rebates, if they want.
Intermarket Competition. The Exchange operates in a highly
competitive market in which market participants can readily favor one
of the other 17 competing option exchanges if they deem fee levels at a
particular venue 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. Therefore, currently no
exchange possesses significant pricing power in the execution of
multiply listed equity and ETF options order flow. More specifically,
in July 2026, the Exchange had 10.01% market share of executed volume
of multiply listed equity and ETF options order flow.
The aim of the proposed changes is to attract more QCC orders to
the Exchange, which 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,
improve market-wide quality and price discovery.
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) \12\ of the Act and subparagraph (f)(2) of Rule
19b-4 \13\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\14\ 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#1e6c6b727b337d7173737b706a6d5e6d7b7d30797168"><span class="__cf_email__" data-cfemail="255750494008464a4848404b5156655640460b424a53">[email protected]</span></a>. Please include
file number SR-NYSEARCA-2026-98 on the subject line.
[[Page 61009]]
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-2026-98. 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-2026-98 and should be submitted
on or before October 16, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-19638 Filed 9-24-26; 8:45 am]
BILLING CODE 8011-01-P
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