Federal Register #SRPhlx202638

SEC Notice: Nasdaq PHLX and NYSE American Propose Options Fee and Program Changes

This notice details proposed rule changes by Nasdaq PHLX LLC and NYSE American LLC regarding options trading fees: - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors: - Nasdaq PHLX LLC (self-regulatory organization and exchange) - NYSE American LLC (self-regulatory organization and exchange) - Products/Services Requested: - Options Regulatory Fee (ORF) adjustment by Nasdaq PHLX LLC - Decrease from $0.0150 to $0.0080 per contract side - Applies to options transactions cleared by OCC for member and non-member organizations - Manual Billable Program modifications by NYSE American LLC - Renaming of the Manual Billable Rebate Program - Adjustments to rebate structures - Addition of a Floor Broker credit under the Firm Monthly Fee Cap - Unique or Notable Requirements: - ORF Regulatory Revenue will be capped at 82% of Options Regulatory Costs to ensure compliance - Rule text for ORF collection methodology will be clarified - NYSE American's changes include new incentives for Floor Brokers - No hardware, software, or product part numbers are requested; these are regulatory fee and incentive program changes.

Description

The Securities and Exchange Commission (SEC) published a notice regarding a proposed rule change by Nasdaq PHLX LLC to amend the exchange's Options Regulatory Fee (ORF). The proposal includes decreasing the ORF rate effective July 1, 2026, from $0.0150 to $0.0080 per contract side and a non-substantive amendment to the rule text describing the ORF collection methodology. The rule change is effective immediately upon filing and aims to ensure that ORF Regulatory Revenue does not exceed a material portion of Options Regulatory Costs, specifically capping revenue at 82% of costs. The notice invites public comments on the proposed change.

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