Federal Register #SR-NYSEARCA-2026-65

SEC Notice: NYSE Arca Rule Change for Monthly Customer Activity Review

This notice from the Securities and Exchange Commission (SEC) outlines a proposed rule change by NYSE Arca, Inc. affecting options trading compliance. - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - No Original Equipment Manufacturers (OEMs) or commercial vendors are involved, as this is a regulatory action - Products/Services Requested: - No products or commercial services are being procured - Regulatory service: Amendment to Rule 1 requiring Options Trading Permit (OTP) Holders and OTP Firms to review customer activity monthly (previously quarterly) to determine Professional Customer order status - Designation changes must occur within five days after each month - Unique/Notable Requirements: - The review period for customer activity is shortened from quarterly to monthly - The change is intended to expedite the Professional Customer designation process without increasing workflow burden for OTP Holders and Firms - No procurement of goods or services, no part numbers, and no purchase quantities are specified

Description

The Securities and Exchange Commission has filed a proposed rule change by NYSE Arca, Inc. to amend Rule 1 to require Options Trading Permit (OTP) Holders and OTP Firms to review customer activity on a monthly basis rather than quarterly. This change shortens the timeframe for determining whether orders should be represented as Professional Customer orders, requiring changes within five days after the end of each calendar month instead of after each calendar quarter. The proposal aims to ensure more timely and consistent application of the Professional Customer designation without increasing the current workflow for OTP Holders and OTP Firms.

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