[Federal Register Volume 90, Number 128 (Tuesday, July 8, 2025)]
[Notices]
[Pages 30184-30185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-12617]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103371; File No. SR-NYSEARCA-2025-46]
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 Restructure the Presentation of the
Manual Billable Rebate Program
July 2, 2025.
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 June 26, 2025, 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 modify the NYSE Arca Options Fee Schedule
(``Fee Schedule'') to restructure the description of the Manual
Billable Rebate Program. The Exchange proposes to implement this change
effective June 26, 2025.\4\ The proposed rule change is available on
the Exchange's website at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
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\4\ On June 11, 2025, the Exchange filed to amend the Fee
Schedule (NYSEARCA-2025-43) and withdrew such filing on June 26,
2025.
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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 purpose of this filing is to modify the Fee Schedule to
restructure the description of the Manual Billable Rebate Program (the
``Rebate Program'') to improve the readability of the Fee Schedule.
The Rebate Program is available to participants in the Floor Broker
Fixed Cost Prepayment Incentive Program (the ``FB Prepay Program''),
which is an incentive program that allows Floor Brokers to that prepay
certain of their annual Eligible Fixed Costs to be eligible for the
Rebate Program.\5\
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\5\ Manual billable volume includes transactions for which at
least one side is subject to manual transaction fees and excludes
QCCs, transactions described in Endnote 12, and any volume
calculated to achieve Strategy Cap, regardless of whether this cap
is achieved. See Fee Schedule, Floor Broker Fixed Cost Prepayment
Incentive Program (the ``FB Prepay Program'').
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FB Prepay Participants receive a ``base'' rebate on manual billable
volume of ($0.08) per billable side, plus a ``bonus'' rebate of ($0.02)
per billable side if they achieve more than 500,000 billable sides in a
month, payable back to the first billable side.\6\
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\6\ See id.
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In addition to the base and bonus rebates, FB Prepay Participants
may earn another rebate tied to ``Submitting Broker QCC Credits.'' \7\
Specifically, FB Participants that ``[a]chieve 3.5 million QCC
contracts per month'' (``QCC Tier 2'') are eligible to earn one of the
two rebates as shown below.
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\7\ See Fee Schedule, Additional Submitting Broker QCC Credits
(available to Floor Brokers that achieve QCC Tier 1 or QCC Tier 2).
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A ($0.01) rebate per billable side if they achieve QCC
Tier 2, plus execute manual billable sides equal to at least 10% of the
QCC Tier 2 volume requirement (i.e., execute at least 350,000 manual
billable sides); or
A ($0.02) rebate per billable side if they achieve QCC
Tier 2, plus execute manual billable sides equal to at least 20% of the
QCC Tier 2 volume requirement (i.e., execute at least 700,000 manual
billable sides).\8\
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\8\ See Fee Schedule, Floor Broker Fixed Cost Prepayment
Incentive Program (the ``FB Prepay Program'').
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A Floor Broker may only receive one of these two rebates tied to
QCC Tier 2, retroactive to the first billable side.\9\
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\9\ The Exchange currently places a $3,000,000 per firm, monthly
maximum limit on the rebates earned through the Manual Billable
Rebate Program when combined with Submitting Broker QCC Credits See
Fee Schedule, FB Prepay Program, endnote 17.
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Currently, the Exchange describes the Rebate Program, including the
base and bonus rebates, in an introductory paragraph that is followed
by a visual representation of these same rebates in a table titled
``Manual Billable Rebate Program'' (the ``Table''). To reduce potential
investor confusion, the Exchange proposes to remove the title of the
Table (as redundant and unnecessary); to remove from the Table text
that repeats the description of rebates already included in the
introductory paragraph; and to correct a typographical error as
described below.
First, because the base and bonus rebates are described in both the
introductory paragraph and the Table, the Exchange proposes remove the
repetitive title of the Table together with the rows that (again)
describe the base and bonus rebates.\10\ Consistent with this change,
the Exchange proposes to modify the introductory paragraph to remove
the clause stating ``[a]s shown in the table below. . .''.\11\
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\10\ See proposed Fee Schedule, FB Prepay Program.
\11\ See id.
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The Exchange also proposes to modify the Table by capitalizing each
word in the column setting forth the ``Rebate per Billable Side'' and,
in that latter column, removing the word ``Additional'' in reference to
the rebates associated with achieving QCC Tier 2.
Finally, regarding the table setting forth the ``Additional
Submitting Broker QCC Credits,'' the Exchange proposes to relocate that
text so that it appears as the title of the table rather than as a
column heading and to re-name that column ``Qualifying Volume,'' which
would add clarity, transparency, and internal consistency to the Fee
Schedule. The Exchange believes these streamlining changes will add
clarity and transparency to the Fee Schedule making it easier for
investors to navigate and understand.
The Exchange is not proposing any substantive change to the FB
Prepay Program or the Rebate Program.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\12\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\13\ 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
[[Page 30185]]
facilities and does not unfairly discriminate between customers,
issuers, brokers or dealers.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes that the proposed rule change to restructure
the presentation of the Rebate Program by deleting repetitive text and
correcting a typographical error, is reasonable, equitable, and not
unfairly discriminatory because such change would reduce the potential
for investor confusion regarding rebates available to Floor Brokers
participating in the FB Prepay Program, thus improving the readability
of the Fee Schedule.
The proposed rule change is equitable and not unfairly
discriminatory because it would impact all similarly situated market
participants (i.e., FB Prepay Participants) on an equal basis. The
Exchange believes that the proposed change would promote investor
protection and public interest because the restructured rule text would
enhance and improve the readability of the Fee Schedule thus reducing
any potential confusion regarding rebates available to all Floor
Brokers participating in the FB Prepay Program.
The Exchange is not proposing any substantive change to the FB
Prepay Program or the Rebate Program.
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 changes would impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Instead, as discussed above, the proposed change
relates solely to restructuring the description of the Rebate Program
and, accordingly, would not have any impact on intramarket or
intermarket competition. The proposed change is designed to improve the
readability of the Fee Schedule and to reduce (or avoid) any potential
confusion regarding rebates available to Floor Brokers participating in
the FB Prepay Program.
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) \14\ of the Act and subparagraph (f)(2) of Rule
19b-4 \15\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 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) \16\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\16\ 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
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-NYSEARCA-2025-46 on the subject line.
Paper Comments
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-2025-46. 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 (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also 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-2025-46 and should
be submitted on or before July 29, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-12617 Filed 7-7-25; 8:45 am]
BILLING CODE 8011-01-P