Notice2026-19727
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the NYSE Arca Options Fee Schedule To Amend the Exchange's Port Fees
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
September 28, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 186 (Monday, September 28, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 186 (Monday, September 28, 2026)]
[Notices]
[Pages 61268-61271]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19727]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106477; File No. SR-NYSEARCA-2026-100]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Modify the
NYSE Arca Options Fee Schedule To Amend the Exchange's Port Fees
September 23, 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 17, 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
[[Page 61269]]
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 modify the NYSE Arca Options Fee Schedule
(``Fee Schedule'') to amend the Exchange's port fees. The Exchange
proposes implementing the fee change effective September 17, 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 modify the Fee Schedule to amend the
Exchange's port fees.\4\ The Exchange proposes to implement the fee
change effective September 17, 2026.\5\
---------------------------------------------------------------------------
\4\ See Fee Schedule, Floor Broker Fixed Cost Repayment
Incentive Program (the ``FB Prepay Program), Port Fees. The Exchange
last modified its port fees as of March 3, 2025, to increase the
port fees for Order/Quote Entry Ports by up to 13.3% to account for
inflation that had occurred since 2017. See Securities Exchange Act
Release No. 102551 (March 10, 2025), 90 FR 12194 (March 14, 2025)
(SR-NYSEARCA-2025-21) (``NYSE Arca, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change To Increase Port
Fees''). Prior to that, the Exchange had not increased port fees for
Order/Quote Entry Ports since 2014.
\5\ The Exchange originally filed to amend the Fee Schedule on
July 31, 2026 (SR-NYSEARCA-2026-83). SR-NYSEARCA-2026-83 was
withdrawn on August 11, 2026, and replaced by SR-NYSEARCA-2026-86.
SR-NYSEARCA-2026-86 was withdrawn on August 25, 2026 and replaced by
SR-NYSEARCA-88. SR-NYSEARCA-2026-88 was withdrawn on September 8,
2026 and replaced by SR-NYSEARCA-2026-95. SR-NYSEARCA-2026-95 was
withdrawn on September 17, 2026 and replaced by this filing.
---------------------------------------------------------------------------
The Exchange makes available ports that provide connectivity for
OTP Holders \6\ and OTP Firms \7\ to connect to the Exchange's trading
systems (``Order/Quote Entry Ports'') and charges a monthly fee of $510
per port for the first 40 ports and $170 for each additional port.\8\
For purposes of calculating the number of Order/Quote Entry Ports, the
Exchange aggregates the ports of affiliates.\9\ The Exchange proposes
to modify this fee structure to maintain the monthly $510 per port fee
for the first 40 Order/Quote Entry Ports and the monthly $170 per port
fee for Order/Quote Entry Ports 41-300, but add varying fee levels for
additional ports 301 and above. Specifically, the Exchange proposes the
following fee structure: \10\
---------------------------------------------------------------------------
\6\ Pursuant to Rule 1 Definitions, the term ``OTP Holder''
shall refer to a natural person, in good standing, who has been
issued an OTP, or has been named as a Nominee. An OTP Holder must be
a registered broker or dealer pursuant to Section 15 of the
Securities Exchange Act of 1934, or a nominee or an associated
person of a registered broker or dealer that has been approved by
the Exchange to conduct business on the Exchange's Trading
Facilities. An OTP Holder will have status as a ``member'' of the
NYSE Arca, Inc. as that term is defined in Section 3 of the
Securities Exchange Act of 1934, as amended.
\7\ Pursuant to Rule 1 Definitions, the term ``OTP Firm'' shall
refer to a sole proprietorship, partnership, corporation, limited
liability company or other organization in good standing who holds
an OTP or upon whom an individual OTP Holder has conferred trading
privileges on the Exchange's Trading Facilities pursuant to and in
compliance with these Rules. An OTP Firm must be a registered broker
or dealer pursuant to Section 15 of the Securities Exchange Act of
1934. An OTP Firm will have status as a ``member'' of the NYSE Arca,
Inc. as that term is defined in Section 3 of the Securities Exchange
Act of 1934, as amended.
\8\ See Fee Schedule, Floor Broker Fixed Cost Repayment
Incentive Program (the ``FB Prepay Program), Port Fees.
\9\ Id.
\10\ See proposed Fee Schedule Floor Broker Fixed Cost Repayment
Incentive Program (the ``FB Prepay Program), Port Fees.
<bullet> Ports 1-40: $510 per port per month
<bullet> Ports 41-300: $170 per port per month
<bullet> Ports 301-1000: $250 per port per month
<bullet> Ports 1001 and greater: $510 per port per month
The Exchange's proposal addresses the fact that ports consume a
finite shared capacity across OTP Holders and OTP Firms and the
aggregate footprint drives the infrastructure that the Exchange must
engineer, provision, staff and periodically expand to maintain
performance. As the number of ports in use grows, the Exchange must
dedicate additional capacity and expense to meet this demand. The
proposed fee for the use of more than 300 ports reflects this reality
and is intended to encourage OTP Holders and OTP Firms to size their
port usage efficiently.
While the Exchange's proposal increases the fees for the use of
more than 300 ports, the Exchange's overall port fees remain lower than
the similar port fees charged by Cboe Exchange, Inc. (``Cboe''), Nasdaq
PHLX, LLC (``PHLX'') and The Nasdaq Stock Market LLC (``Nasdaq''), as
detailed in the following chart:
------------------------------------------------------------------------
Monthly fee
Exchange Type of product/service (per port)
------------------------------------------------------------------------
Cboe *......................... 1st to 5th FIX Logical $750
Port.
6th or more FIX Logical 800
Port.
PHLX **........................ SQF Port Fee ***....... 1,185
FIX Port Fee........... 650
Nasdaq ****.................... FIX Port Fee........... 650
------------------------------------------------------------------------
* See CBOE Fee Schedule Available at Cboe_FeeSchedule.pdf.
** See PHLX Options 7 Pricing Schedule, Section 9B(1) FIX Port Fee and
PHLX Options 7 Pricing Schedule, Section 9(B)(3) SQF Port Fee
available at Rules [verbar] Nasdaq PHLX.
*** PHLX's SQF ports are specifically designed for Market Makers to send
and receive quote/related messages, whereas FIX ports are their
general-purpose order entry/related ports. Pursuant to the PHLX
Options Pricing Schedule, a Market Maker may not subscribe to more
than 250 ports. See PHLX Options 7 Pricing Schedule, Section 9(B)(3),
supra.
**** See Nasdaq Options 7 Pricing Schedule, Section 3(i)(1) Nasdaq
Options Market--Ports and Other Services available at Rules [verbar]
The Nasdaq Stock Market.
As set forth on the chart, the Exchange's proposed port fee is less
than that imposed by similarly situated options exchanges.
Specifically, the monthly fees that the Exchange will continue to
charge for the use of ports 1 through 40 ($510 per port) and 41 through
300 ($170 per port) will remain lower than the fees charged by Cboe,
[[Page 61270]]
PHLX and Nasdaq for the same number of ports. Similarly, the proposed
new monthly tiers for ports 301-1,000 ($250 per port) and more than
1,001 ($510 per port) are lower than the fees charged by Cboe and
Nasdaq for the same number of ports, $800 and $650, respectively.
PHLX
In general, the Exchange's FIX port allows ATP Holders to send
simple and complex orders, quotes and other messages using FIX
protocols.\11\ While it does not include the sending of quotes,\12\
PHLX's FIX Ports are analogous to the Exchange's FIX Ports in that they
that allow PHLX participants to connect, send, and receive messages
related to orders to and from PHLX, which include the following: (1)
execution messages; (2) order messages; and (3) risk protection
triggers and cancel notifications.\13\
---------------------------------------------------------------------------
\11\ See generally, NYSE Pillar Options FIX Gateway Protocol
Specification.
\12\ Market Maker quotes are sent to PHLX via SQF port fees. See
PHLX Options 3, Section 7, Supplementary Materials .03(C).
\13\ See PHLX Options 3, Section 7, Supplementary Materials
.03(A).
---------------------------------------------------------------------------
Notwithstanding this difference, PHLX charges a higher monthly FIX
port fee than the one proposed by the Exchange, regardless of the
number of ports being used. For ports 1 through 40, PHLX charges $140
more per month per port than the Exchange. The difference increases for
ports 41 through 300 and ports 301 through 1000, where PHLX charges
$480 and $400 more than the Exchange per month per port, respectively.
For more than 1,000 ports, PHLX continues to charge higher per month
per port fee than that proposed by the Exchange ($650 compared to
$510).
Nasdaq
While it does not include the sending of quotes,\14\ Nasdaq FIX
Ports are analogous to the Exchange's FIX Ports in that they that allow
Nasdaq participants to connect, send, and receive messages related to
orders to and from Nasdaq, which include the following: (1) execution
messages; (2) order messages; and (3) risk protection triggers and
cancel notifications.\15\
---------------------------------------------------------------------------
\14\ Market Maker quotes are sent to Nasdaq via SQF port fees.
See Nasdaq Options 3, Section 7, Supplementary Materials .03(C).
\15\ See Nasdaq Options 3, Section 7, Supplementary Materials
.03(A).
---------------------------------------------------------------------------
Notwithstanding this difference, Nasdaq charges a higher monthly
FIX port fee than the one proposed by the Exchange, regardless of the
number of ports being used. For ports 1 through 40, Nasdaq charges $140
more per month per port than the Exchange. The difference increases for
ports 41 through 300 and ports 301 through 1000, where Nasdaq charges
$480 and $400 more than the Exchange per month per port, respectively.
For more than 1,000 ports, Nasdaq continues to charge higher per month
per port fee than that proposed by the Exchange ($650 compared to
$510).
Cboe
Cboe charges higher Logical Port fees than the FIX Port fees
proposed by the Exchange. Cboe's Logical Ports are analogous to the
Exchange's FIX Ports. In general, a FIX Port allows an ATP Holder to
send simple and complex orders, as well as other messages, to the
Exchange using the FIX protocol.\16\
---------------------------------------------------------------------------
\16\ See generally, NYSE Pillar Options FIX Gateway Protocol
Specification.
---------------------------------------------------------------------------
Cboe Logical Ports allow for order entry and other messages to be
sent to Cboe by participants.\17\ Cboe charges $750 per month per port
for the first through fifth port and $800 per port per month for each
port above that, while the Exchange's highest proposed tier is only
$510 per port per month.
---------------------------------------------------------------------------
\17\ See, generally, Cboe Titanium U.S. Options FIX
Specification, available at <a href="https://cdn.cboe.com/resources/membership/US_Options_FIX_Specification.pdf">https://cdn.cboe.com/resources/membership/US_Options_FIX_Specification.pdf</a>.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\18\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act.\19\ 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. The charges are aligned with,
albeit lower than, industry fee practices and are directly related to
the resources expended and costs related to an OTP Holder or OTP Firm's
use of a greater number of ports.
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78f(b).
\19\ 15 U.S.C. 78f(b)(4) & (5).
---------------------------------------------------------------------------
The Proposed Rule Change Is Reasonable
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.'' \20\
---------------------------------------------------------------------------
\20\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (S7-10-04) (``Reg NMS
Adopting Release'').
---------------------------------------------------------------------------
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.\21\ Therefore, currently no exchange possesses significant
pricing power in the execution of multiply-listed equity and ETF
options order flow. More specifically, in June 2026, the Exchange had
10.41% 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.
---------------------------------------------------------------------------
\21\ 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>.
---------------------------------------------------------------------------
In addition, even with the proposed increase, the Exchange's Order/
Quote Entry Ports fees are comparatively low, vis-a-vis industry peer
standards. Moreover, the proposed structural fee changes are narrowly
targeted to the increased level of resources expended and costs
associated with an OTP Holder's or OTP Firm's increase in the number of
Exchange ports employed. Specifically, as noted above, ports consume a
finite shared capacity across OTP Holders and OTP Firms and the
aggregate footprint drives the infrastructure that the Exchange must
engineer, provision, staff and periodically expand to maintain
performance. As the number of ports in use grows, the Exchange must
dedicate additional capacity and expense to meet this demand. The
proposed fee for the use of more than 300 ports reflects this reality
and is intended to encourage OTP Holders and OTP Firms to size their
port usage efficiently.
The Proposed Fees Are Equitably Allocated and Not Unfairly
Discriminatory
The Exchange believes that the proposed fee change is equitably
allocated and not unfairly discriminatory because it would apply to all
OTP Holders and OTP Firms that
[[Page 61271]]
utilize Order/Quote Entry Ports to connect to the Exchange in the same
manner and are not targeted at a specific type or category or market
participant engaged in any particular trading strategy. The Exchange
also believes that the proposal represents an equitable allocation of
reasonable dues, fees and other charges because it will be assessed
uniformly across all market participants and is narrowly targeted to
the increased level of resources expended and costs associated with an
OTP Holder's or OTP Firm's increase in the number of Exchange ports
employed. The proposed fee will be assessed solely based on the number
of FIX Ports an entity selects and not on any other distinction applied
by the Exchange, allowing all OTP Holders and OTP Firms the ability to
access all matching engines.
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
fees do not put any market participants at a relative disadvantage
compared to other market participants. Port fees are based on the
number of ports utilized by OTP Holder and OTP Firms. The proposed port
fees would not impose a barrier to entry to smaller OTP Holders and OTP
Firms as such participants would only be charged for their relative use
of Exchange resources (i.e., the number of ports). To the extent that
there is an increase, it will be assessed uniformly across all market
participants and are narrowly targeted to the increased level of
resources expended and costs associated with an OTP Holder's or OTP
Firm's increase in the number of Exchange ports employed.
Intermarket Competition. The Exchange believes that the proposed
fees do not impose a burden on competition that is not necessary or
appropriate. The Exchange believes that the proposed Port fees do not
place certain market participants at a relative disadvantage to other
market participants because they will apply to all OTP Holders and OTP
Firms in the same manner and are not targeted at a specific type or
category of market participant engaged in any particular trading
strategy. The proposed fees do not depend on any distinctions between
market participants. The proposed fee will be assessed solely based on
the number of FIX Ports an entity selects and not on any other
distinction applied by the Exchange.
The Exchange operates in a highly competitive market in which OTP
Holders and OTP Firms can determine whether to connect directly to the
Exchange based on the value received compared to the cost of doing so.
Should any OTP Holder or OTP Firm find the proposed port fees
unattractive, OTP Holder or OTP Firm has numerous alternative trading
venues to which they may connect and on which they may participate.
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) \22\ of the Act and subparagraph (f)(2) of Rule
19b-4 \23\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
---------------------------------------------------------------------------
\22\ 15 U.S.C. 78s(b)(3)(A).
\23\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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) \24\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\24\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
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#4c3e392029612f2321212922383f0c3f292f622b233a"><span class="__cf_email__" data-cfemail="1664637a733b75797b7b737862655665737538717960">[email protected]</span></a>. Please include
file number SR-NYSEARCA-2026-100 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-NYSEARCA-2026-100. 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-2026-100 and should be
submitted on or before October 19, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
---------------------------------------------------------------------------
\25\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-19727 Filed 9-25-26; 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 September 28, 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.