NYSE Arca raises fee cap charges for options firms and floor brokers
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This notice changes how much certain NYSE Arca options members pay once they hit monthly fee caps. After a firm reaches the $250,000 monthly cap, the exchange will charge $0.02 per contract instead of $0.01 for manual trades, and it will now also apply that charge to QCC trades. The exchange also raises the combined monthly cap on Floor Broker credits and rebates from $3 million to $5.5 million per Floor Broker firm. The practical impact is on firms, broker-dealers, and Floor Broker firms that trade options on NYSE Arca. These members may face higher post-cap charges, while Floor Broker firms can earn more credits and rebates before hitting the cap. The change is already effective, but the SEC is accepting public comments and can still suspend it.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Raises the post-cap charge for manual options trades from $0.01 to $0.02 per contract.
- Extends that $0.02 per-contract charge to QCC trades once the monthly fee cap is reached.
- Increases the combined monthly Floor Broker credit/rebate cap from $3 million to $5.5 million per Floor Broker firm.
Obligations
What this law requires
NYSE Arca Firms and Broker Dealers that reach the $250,000 Monthly Fee Cap must pay an incremental service fee of $0.02 per contract for Manual Transactions, and this same $0.02 per-contract charge now also applies to QCC transactions.
NYSE Arca options Firms and Broker Dealers that reach the $250,000 Monthly Fee Cap must pay an incremental service fee of $0.02 per contract for Manual transactions, and the same $0.02 per contract charge now also applies to QCC transactions.
NYSE Arca Firms and Broker Dealers must continue to exclude Royalty Fees and Strategy Execution fees/volumes from the calculation of fees toward the Firm Monthly Fee Cap.
The Monthly Fee Cap calculation excludes Royalty Fees and fees or volumes associated with Strategy Executions; these amounts must not be counted toward the $250,000 cap.
Manual executions for Firm Facilitations and for Broker Dealers facilitating a Customer or Professional Customer must continue to be charged at $0.00 per contract, even if the Firm or Broker Dealer has reached the Monthly Fee Cap.