Federal Register #SRMEMX202621

SEC Notice: MEMX LLC Proposed Rule Change for Options Regulatory Fee (ORF) Methodology

The Securities and Exchange Commission (SEC) has issued a notice regarding MEMX LLC's proposed rule change to update the Options Regulatory Fee (ORF) methodology for MEMX Options transactions. - Government Buyer: - United States Securities and Exchange Commission (SEC) - OEM/Vendor: - MEMX LLC (the only OEM/vendor mentioned) - Products/Services Requested: - Assessment and collection of the Options Regulatory Fee (ORF) for customer options transactions executed on MEMX Options - New ORF rate set at $0.0200 per contract side (previously $0.0015) - Fee applies to all customer options transactions cleared by the Options Clearing Corporation (OCC) for executions on MEMX Options - Excludes firm and market maker accounts - Unique/Notable Requirements: - ORF is designed to recover a material portion of MEMX's regulatory costs (supervision, surveillance, investigations, policy, rulemaking, interpretive, and enforcement activities) - MEMX will notify Members of any ORF changes at least 30 calendar days before the effective date - ORF revenues will be monitored to ensure they do not exceed 75% of total regulatory costs - Includes non-substantive amendments to the Options Fee Schedule for clarity and codifies notification practices

Description

The Securities and Exchange Commission has filed a notice regarding MEMX LLC's proposed rule change to establish the Options Regulatory Fee (ORF) under a new methodology for transactions on the exchange. The proposal sets the ORF rate at $0.0200 per contract side effective immediately, replacing the previous rate of $0.0015. The fee is designed to recover a material portion of the costs related to the supervision and regulation of Members' customer options business. The Exchange will notify Members of any fee changes at least 30 days prior to the effective date and will monitor revenues to ensure they do not exceed 75% of total regulatory costs.

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