Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 82541 

11 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3The following are current Select Symbols within 

Options 7, Section 2: ASHR, DIA, DXJ, EEM, EFA, 

EWJ, EWT, EWW, EWY, EWZ, FAS, FAZ, FXE, FXI, 

FXP, GDX, GLD, HYG, IWM, IYR, KRE, OIH, QID, 

QLD, QQQ, RSX, SDS, SKF, SLV, SRS, SSO, TBT, 

TLT, TNA, TZA, UNG, URE, USO, UUP, UVXY, 

UYG, VXX, XHB, XLB, XLE, XLF, XLI, XLK, XLP, 

XLU, XLV, XLY, XME, XOP, XRT. 

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 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–NYSE–2020–98 and should 

be submitted on or before January 8, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–27836 Filed 12–17–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90655; File No. SR–BX– 

2020–037] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Filing of Proposed 

Rule Change To Amend BX Options 7, 

Section 2 and Section 3 

December 14, 2020. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

1, 2020, Nasdaq BX, Inc. (‘‘BX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III, below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend BX 

Options 7, Section 2, ‘‘BX Options 

Market—Fees and Rebates,’’ and 

Options 7, Section 3, ‘‘BX Options 

Market—Ports and other Services.’’ 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/bx/rules, at the principal office 

of the Exchange, and at the 

Commission’s Public Reference Room. 

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 

Exchange 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 these 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

BX’s Pricing Schedule at Options 7, 

Section 2, ‘‘BX Options Market—Fees 

and Rebates,’’ and Options 7, Section 3, 

‘‘BX Options Market—Ports and other 

Services.’’ Each change will be 

described in detail below. 

Options 7, Section 2 

The Exchange proposes to remove the 

options tier schedules applicable to 

Select Symbols 3 and SPY pricing. With 

this proposal, all pricing within Options 

7, Section 2 would be subject to either 

the Penny Symbol or Non-Penny 

Symbol pricing tier schedules. 

Today, the Exchange assesses fees and 

rebates for Penny Symbols and NonPenny Symbols, excluding Select 

Symbols and SPY. Today, both Select 

Symbols and options overlying ‘‘SPY’’ 

are subject to alternative pricing as 

detailed below. 

Today, the Exchange assesses fees and 

pays rebates for Penny and Non-Penny 

Symbols in accordance with the below 

table and corresponding Penny and 

Non-Penny tier schedules. 

FEES AND REBATES

[per executed contract] 

Customer BX options 

market maker 

Noncustomer 1 Firm 

Penny Symbols (Excluding Options in Select Symbols): 

Rebate to Add Liquidity ............................................................................ # 2 $0.10 N/A N/A 

Fee to Add Liquidity ................................................................................. # 3 0.39 $0.45 $0.45 

Rebate to Remove Liquidity ..................................................................... # N/A N/A N/A 

Fee to Remove Liquidity ........................................................................... N/A # 0.46 0.46 

Non-Penny Symbols: 

Rebate to Add Liquidity ............................................................................ * N/A N/A N/A 

Fee to Add Liquidity ................................................................................. * 5 0.50/0.95 0.98 0.98 

Rebate to Remove Liquidity ..................................................................... * N/A N/A N/A 

Fee to Remove Liquidity ........................................................................... N/A * 0.89 0.89 


khammond on DSKJM1Z7X2PROD with NOTICES
82542 Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 

4 Volume from all products listed on BX Options 

applies to the Select Symbols Options Tiers. 

# PENNY SYMBOLS TIER SCHEDULE

[Excluding select symbols options] 

Rebate to 

add liquidity 

Fee to 

add liquidity 

Rebate 

to remove 

liquidity 

Fee 

to remove 

liquidity 

Fee 

to remove 

liquidity 

When: Customer Customer Customer BX options 

market 

maker 

BX options 

market 

maker 

Trading with: Non-customer 

BX options 

market maker, 

or firm 

Customer Non-customer, 

BX options 

market maker, 

customer, or 

firm 

Customer Non-customer, 

BX options 

market maker, 

or firm 

Tier 1. Participant executes less than 0.05% of total industry customer equity and ETF option ADV contracts per 

month ................................................................................ $0.00 $0.39 $0.00 $0.39 $0.46 

Tier 2. Participant executes 0.05% to less than 0.15% of 

total industry customer equity and ETF option ADV contracts per month ............................................................... 0.10 0.39 0.25 0.39 0.46 

Tier 3. Participant executes 0.15% or more of total industry customer equity and ETF option ADV contracts per 

month ................................................................................ 0.20 0.39 0.35 0.30 0.46 

* NON-PENNY SYMBOLS TIER SCHEDULE

Rebate to 

add liquidity 

Fee to 

add liquidity 

Rebate 

to remove 

liquidity 

Fee 

to remove 

liquidity 

Fee 

to remove 

liquidity 

When: Customer Customer Customer BX options 

market 

maker 

BX options 

market 

maker 

Trading with: Non-customer 

BX options 

market maker, 

or firm 

Customer Non-customer, 

BX options 

market maker, 

customer, or 

firm 

Customer Non-customer, 

BX options 

market maker, 

or firm 

Tier 1. Participant executes less than 0.05% of total industry customer equity and ETF option ADV contracts per 

month ................................................................................ $0.00 $0.85 $0.80 $0.89 $0.89 

Tier 2. Participant executes 0.05% to less than 0.15% of 

total industry customer equity and ETF option ADV contracts per month ............................................................... 0.10 0.85 0.80 0.89 0.89 

Tier 3. Participant executes 0.15% or more of total industry customer equity and ETF option ADV contracts per 

month ................................................................................ 0.20 0.85 0.80 0.60 0.89 

Select Symbols 

With respect to Select Symbols 

Options, the following tier schedule 4

applies today: 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 82543 

5Penny Symbols must comply with the 

requirements for the Penny Interval Program within 

Supplementary Material .01 to Options 3, Section 

3. 

6Among the Select Symbols noted within 

Options 7, Section 2, the following are Penny 

Symbols: ASHR, DIA, EEM, EFA, EWJ, EWW, EWY, 

EWZ, FAS, FXI, GDX, GLD, HYG, IWM, IYR, KRE, 

OIH, QQQ, RSX, SDS, SLV, SSO, TBT, TLT, TNA, 

UNG, USO, UUP, UVXY, VXX, XLB, XLE, XLF, XLI, 

XLK, XLP, XLU, XLV, XLY, XME, XOP, and XRT. 

7Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month receive no Select Symbol 

Rebate to Add Liquidity for Tier 1. Participants that 

executes 0.05% to less than 0.15% of total industry 

customer equity and ETF option ADV contracts per 

month receive a $0.10 per contract Select Symbol 

Rebate to Add Liquidity for Tier 2. Participants that 

execute 0.15% or more of total industry customer 

equity and ETF option ADV contracts per month 

receive a $0.20 per contract Select Symbol Rebate 

to Add Liquidity for Tier 3. Participants that 

execute greater than 10,000 PRISM Agency 

Contracts per month; or Participant executes BX 

Options Market Maker volume of 0.30% or more of 

total industry customer equity and ETF options 

ADV per month receive a $0.25 per contract Select 

Symbol Rebate to Add Liquidity for Tier 4. 

8Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month receive no Select Symbol 

Rebate to Remove Liquidity for Tier 1. Participants 

that executes 0.05% to less than 0.15% of total 

industry customer equity and ETF option ADV 

contracts per month receive a $0.25 per contract 

Select Symbol Rebate to Remove Liquidity for Tier 

2. Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month receive a $0.37 per contract 

Select Symbol Rebate to Remove Liquidity for Tier 

3. Participants that execute greater than 10,000 

PRISM Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month receive a $0.37 

per contract Select Symbol Rebate to Remove 

Liquidity for Tier 4. 

9Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would receive no Penny 

Symbol Rebate to Add Liquidity in Tier 1. 

Participants that execute 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month would receive a $0.10 per 

contract Penny Symbol Rebate to Add Liquidity in 

Tier 2. Participants that execute 0.15% or more of 

total industry customer equity and ETF option ADV 

contracts per month would receive a $0.20 per 

contract Penny Symbol Rebate to Add Liquidity in 

Tier 3. 

10Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would receive no Penny 

Symbol Rebate to Remove Liquidity in Tier 1. 

Participants that execute 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month would receive a $0.25 per 

contract Penny Symbol Rebate to Remove Liquidity 

in Tier 2. Participants that execute 0.15% or more 

of total industry customer equity and ETF option 

ADV contracts per month will would receive a 

Continued 

SELECT SYMBOLS OPTIONS TIER SCHEDULE

Rebate to 

add liquidity 

Fee to 

add liquidity 

Rebate 

to remove 

liquidity 

Fee 

to remove 

liquidity 

Fee 

to remove 

liquidity 

When: Customer Customer Customer BX options 

market 

maker 

BX options 

market 

maker 

Trading with: Non-customer 

BX options 

market maker, 

or firm 

Customer Non-customer, 

BX options 

market maker, 

customer, or 

firm 

Customer Non-customer, 

BX options 

market maker, 

or firm 

Tier 1. Participant executes less than 0.05% of total industry customer equity and ETF option ADV contracts per 

month ................................................................................ $0.00 $0.44 $0.00 $0.42 $0.14 

Tier 2. Participant executes 0.05% to less than 0.15% of 

total industry customer equity and ETF option ADV contracts per month ............................................................... 0.10 0.44 0.25 0.42 0.10 

Tier 3. Participant executes 0.15% or more of total industry customer equity and ETF option ADV contracts per 

month ................................................................................ 0.20 0.40 0.37 0.39 0.04 

Tier 4. Participant executes greater than 10,000 PRISM 

Agency Contracts per month; or Participant executes 

BX Options Market Maker volume of 0.30% or more of 

total industry customer equity and ETF options ADV per 

month ................................................................................ 0.25 0.29 0.37 0.25 0.00 

The Exchange proposes to remove the 

Select Symbols Options Tier Schedule 

and corresponding notes and instead 

assess each Select Symbol as either a 

Penny 5 or Non-Penny Symbol. 

Among the Select Symbols noted 

within Options 7, Section 2, the 

following are Penny Symbols: ASHR, 

DIA, EEM, EFA, EWJ, EWW, EWY, 

EWZ, FAS, FXI, GDX, GLD, HYG, IWM, 

IYR, KRE, OIH, QQQ, RSX, SDS, SLV, 

SSO, TBT, TLT, TNA, UNG, USO, UUP, 

UVXY, VXX, XLB, XLE, XLF, XLI, XLK, 

XLP, XLU, XLV, XLY, XME, XOP, and 

XRT. Among the Select Symbols noted 

within Options 7, Section 2, the 

following are Non-Penny Symbols: DXJ, 

EWT, FAZ, FXE, FXP, QID, QLD, SKF, 

SRS, SSO, TZA, URE, UYG, and XHB. 

Select Symbols to be Priced as Penny 

Symbols 

With respect to the impact on pricing 

for the above-referenced Select 

Symbols,6 which would be priced as 

Penny Symbols with this proposal, the 

Exchange notes the below changes in 

pricing. 

Customers 

Today, Customers are paid Rebates to 

Add Liquidity in Select Symbols when 

trading against Non-Customers, BX 

Options Market Makers or Firms which 

range from $0.00 to $0.25 per contract.7

Today, Customers are paid a Rebate to 

Remove Liquidity in Select Symbols 

when trading against Non-Customers, 

BX Options Market Makers, Customers 

or Firms which range from $0.00 to 

$0.37 per contract.8 Today, the 

Customer Fee to Add Liquidity in Select 

Symbols when contra to another 

Customer is $0.33 per contract. 

With this proposal, Customers would 

receive a Penny Symbol Rebate to Add 

Liquidity when trading against a NonCustomer, BX Options Market Maker or 

Firm which ranges from $0.00 to $0.20 

per contract.9 With this proposal, 

Customers would receive a Penny 

Symbol Rebate to Remove Liquidity 

when trading against a Non-Customer, 

BX Options Market Maker, Customer or 

Firm which ranges from $0.00 to $0.35 

per contract.10 With this proposal, 


khammond on DSKJM1Z7X2PROD with NOTICES
82544 Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 

$0.35 per contract Penny Symbol Rebate to Remove 

Liquidity in Tier 3. 

11Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a $0.39 per contract 

Penny Symbol Fee to Add Liquidity in Tier 1. 

Participants that execute 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month would pay a $0.39 per 

contract Penny Symbol Fee to Add Liquidity in Tier 

2. Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month would pay a $0.39 per contract 

Penny Symbol Fee to Add Liquidity in Tier 3. 

12Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.44 per contract in Tier 1. 

Participants that executes 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month pay a Select Symbol Fee 

to Add Liquidity of $0.44 per contract in Tier 2. 

Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.40 per contract in Tier 3. 

Participants that execute greater than 10,000 PRISM 

Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month pay a Select 

Symbol Fee to Add Liquidity of $0.29 per contract 

in Tier 4. 

13Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Remove Liquidity of $0.42 per contract in Tier 1. 

Participants that executes 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month pay a Select Symbol Fee 

to Remove Liquidity of $0.42 per contract in Tier 

2. Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Remove Liquidity of $0.39 per contract in Tier 3. 

Participants that execute greater than 10,000 PRISM 

Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month pay a Select 

Symbol Fee to Remove Liquidity of $0.25 per 

contract in Tier 4. 

14Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.14 per contract in Tier 1. 

Participants that executes 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month pay a Select Symbol Fee 

to Add Liquidity of $0.10 per contract in Tier 2. 

Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.04 per contract in Tier 3. 

Participants that execute greater than 10,000 PRISM 

Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month pay no Select 

Symbol Fee to Add Liquidity in Tier 4. 

15Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a Penny Symbol Fee 

to Remove Liquidity of $0.39 per contract in Tier 

1. Participants that execute 0.05% to less than 

0.15% of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.39 per 

contract in Tier 2. Participants that execute 0.15% 

or more of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.30 per 

contract in Tier 3. 

16Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a Penny Symbol Fee 

to Remove Liquidity of $0.46 per contract in Tier 

1. Participants that execute 0.05% to less than 

0.15% of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.46 per 

contract in Tier 2. Participants that execute 0.15% 

or more of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.46 per 

contract in Tier 3. 

17Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month receive no Select Symbol 

Rebate to Add Liquidity for Tier 1. Participants that 

executes 0.05% to less than 0.15% of total industry 

customer equity and ETF option ADV contracts per 

month receive a $0.10 per contract Select Symbol 

Rebate to Add Liquidity for Tier 2. Participants that 

execute 0.15% or more of total industry customer 

equity and ETF option ADV contracts per month 

receive a $0.20 per contract Select Symbol Rebate 

to Add Liquidity for Tier 3. Participants that 

execute greater than 10,000 PRISM Agency 

Contracts per month; or Participant executes BX 

Options Market Maker volume of 0.30% or more of 

total industry customer equity and ETF options 

ADV per month receive a $0.25 per contract Select 

Symbol Rebate to Add Liquidity for Tier 4. 

Customers would pay a Penny Symbol 

Fee to Add Liquidity when trading 

against a Customer of $0.39 per contract, 

regardless of the tier.11 With this 

proposal, Customers would not pay a 

Penny Symbol Fee to Remove Liquidity. 

BX Options Market Makers 

Today, BX Options Market Makers 

pay a Fee to Add Liquidity in Select 

Symbols when trading against a 

Customer which ranges from $0.44 to 

$0.29 per contract.12 Today, BX Options 

Market Makers pay a Fee to Remove 

Liquidity in Select Symbols when 

trading against a Customer which ranges 

from $0.42 to $0.25 per contract.13

Today, BX Options Market Makers pay 

a Fee to Remove Liquidity in Select 

Symbols when trading against a Firm, 

Non-Customer, or BX Options Market 

Maker of $0.46 per contract. Today, BX 

Options Market Makers pay a Fee to 

Add Liquidity in Select Symbols when 

trading against a Non-Customer, BX 

Options Market Maker or Firm which 

ranges from $0.14 to $0.00 per 

contract.14

With this proposal, BX Options 

Market Makers would receive a Penny 

Symbol Rebate to Add Liquidity of 

$0.10 per contract only when the BX 

Options Market Maker is contra to a 

Non-Customer, Firm, or BX Options 

Market Maker. With this proposal, BX 

Options Market Makers would receive 

no Penny Symbol Rebate to Remove 

Liquidity. With this proposal, BX 

Options Market Makers would pay a 

$0.39 per contract Penny Symbol Fee to 

Add Liquidity only when the BX 

Options Market Maker is contra to a 

Customer. With this proposal, BX 

Options Market Makers would pay a 

Penny Symbol Fee to Remove Liquidity 

when trading against a Customer which 

ranges from $0.39 to $0.30 per 

contract.15 With this proposal, BX 

Options Market Makers would pay a 

Penny Symbol Fee to Remove Liquidity 

when trading against a Non-Customer, 

BX Options Market Maker or Firm of 

$0.46 per contract, regardless of the 

tier.16

Non-Customers 

Today, Non-Customers pay a Fee to 

Add Liquidity and a Fee to Remove 

Liquidity in Select Symbols of $0.46 per 

contract, regardless of counterparty. 

Today, Non-Customers receive no Select 

Symbol rebates. 

With this proposal, Non-Customers 

would receive no Penny Symbol Rebate 

to Add Liquidity and no Penny Symbol 

Rebate to Remove Liquidity. With this 

proposal, Non-Customers would pay a 

Penny Symbol Fee to Add Liquidity of 

$0.45 per contract. With this proposal, 

Non-Customers would pay a Penny 

Symbol Fee to Remove Liquidity of 

$0.46 per contract. 

Firms 

Today, Firms pay a Select Symbol Fee 

to Add Liquidity and a Fee to Remove 

Liquidity of $0.37 per contract, 

regardless of counterparty. Today, Firms 

receive no Select Symbol rebates. 

With this proposal, Firms would 

receive no Penny Symbol Rebate to Add 

Liquidity and no Penny Symbol Rebate 

to Remove Liquidity. With this 

proposal, Firms would pay a Penny 

Symbol Fee to Add Liquidity of $0.45 

per contract. With this proposal, Firms 

would pay a Penny Symbol Fee to 

Remove Liquidity of $0.46 per contract. 

Select Symbols To Be Priced as NonPenny Symbols 

With respect to the impact on pricing 

for Select Symbols which would be 

priced as Non-Penny Symbols (DXJ, 

EWT, FAZ, FXE, FXP, QID, QLD, SKF, 

SRS, SSO, TZA, URE, UYG, and XHB) 

with this proposal, the Exchange notes 

the below changes in pricing. 

Customers 

Today, Customers are paid Rebates to 

Add Liquidity in Select Symbols when 

trading against Non-Customers, BX 

Options Market Makers or Firms which 

range from $0.00 to $0.25 per contract.17

Today, Customers are paid a Rebate to 

Remove Liquidity in Select Symbols 

when trading against Non-Customers, 

BX Options Market Makers, Customers 

or Firms which range from $0.00 to 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 82545 

18Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month receive no Select Symbol 

Rebate to Remove Liquidity for Tier 1. Participants 

that executes 0.05% to less than 0.15% of total 

industry customer equity and ETF option ADV 

contracts per month receive a $0.25 per contract 

Select Symbol Rebate to Remove Liquidity for Tier 

2. Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month receive a $0.37 per contract 

Select Symbol Rebate to Remove Liquidity for Tier 

3. Participants that execute greater than 10,000 

PRISM Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month receive a $0.37 

per contract Select Symbol Rebate to Remove 

Liquidity for Tier 4. 

19Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would receive no Non-Penny 

Symbol Rebate to Add Liquidity in Tier 1. 

Participants that execute 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month would receive a $0.10 per 

contract Non-Penny Symbol Rebate to Add 

Liquidity in Tier 2. Participants that execute 0.15% 

or more of total industry customer equity and ETF 

option ADV contracts per month will would receive 

a $0.20 per contract Non-Penny Symbol Rebate to 

Add Liquidity in Tier 3. 

20Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would receive a Non-Penny 

Symbol Rebate to Remove Liquidity of $0.80 per 

contract in Tier 1. Participants that execute 0.05% 

to less than 0.15% of total industry customer equity 

and ETF option ADV contracts per month would 

receive a Non-Penny Symbol Rebate to Remove 

Liquidity of $0.80 per contract in Tier 2. 

Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month would receive a Non-Penny 

Symbol Rebate to Remove Liquidity of $0.80 per 

contract in Tier 3. 

21Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a Non-Penny 

Symbol Fee to Add Liquidity of $0.85 per contract 

in Tier 1. Participants that execute 0.05% to less 

than 0.15% of total industry customer equity and 

ETF option ADV contracts per month would pay a 

Non-Penny Symbol Fee to Add Liquidity of $0.85 

per contract in Tier 2. Participants that execute 

0.15% or more of total industry customer equity 

and ETF option ADV contracts per month would 

pay a Non-Penny Symbol Fee to Add Liquidity of 

$0.85 per contract in Tier 3. 

22Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.44 per contract in Tier 1. 

Participants that executes 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month pay a Select Symbol Fee 

to Add Liquidity of $0.44 per contract in Tier 2. 

Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.40 per contract in Tier 3. 

Participants that execute greater than 10,000 PRISM 

Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month pay a Select 

Symbol Fee to Add Liquidity of $0.29 per contract 

in Tier 4. 

23Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Remove Liquidity of $0.42 per contract in Tier 1. 

Participants that executes 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month pay a Select Symbol Fee 

to Remove Liquidity of $0.42 per contract in Tier 

2. Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Remove Liquidity of $0.39 per contract in Tier 3. 

Participants that execute greater than 10,000 PRISM 

Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month pay a Select 

Symbol Fee to Remove Liquidity of $0.25 per 

contract in Tier 4. 

24Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.14 per contract in Tier 1. 

Participants that executes 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month pay a Select Symbol Fee 

to Add Liquidity of $0.10 per contract in Tier 2. 

Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.04 per contract in Tier 3. 

Participants that execute greater than 10,000 PRISM 

Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month pay no Select 

Symbol Fee to Add Liquidity in Tier 4. 

25Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a Non-Penny 

Symbol Fee to Remove Liquidity of $0.89 per 

contract in Tier 1. Participants that execute 0.05% 

to less than 0.15% of total industry customer equity 

and ETF option ADV contracts per month would 

pay a Non-Penny Symbol Fee to Remove Liquidity 

of $0.89 per contract in Tier 2. Participants that 

execute 0.15% or more of total industry customer 

equity and ETF option ADV contracts per month 

would pay a Non-Penny Symbol Fee to Remove 

Liquidity of $0.60 per contract in Tier 3. 

26Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a Non-Penny 

Symbol Fee to Remove Liquidity of $0.89 per 

contract in Tier 1. Participants that execute 0.05% 

to less than 0.15% of total industry customer equity 

and ETF option ADV contracts per month would 

pay a Non-Penny Symbol Fee to Remove Liquidity 

of $0.89 per contract in Tier 2. Participants that 

execute 0.15% or more of total industry customer 

equity and ETF option ADV contracts per month 

would pay a Non-Penny Symbol Fee to Remove 

Liquidity of $0.89 per contract in Tier 3. 

$0.37 per contract.18 Today, the 

Customer Fee to Add Liquidity in Select 

Symbols when contra to another 

Customer is $0.33 per contract. 

With this proposal, Customers would 

receive a Non-Penny Symbol Rebate to 

Add Liquidity when trading against a 

Non-Customer, BX Options Market 

Maker or Firm which ranges from $0.00 

to $0.20 per contract.19 With this 

proposal, Customers would receive a 

Non-Penny Symbol Rebate to Remove 

Liquidity when trading against a NonCustomer, BX Options Market Maker, 

Customer or Firm of $0.80 per contract, 

regardless of the tier.20 With this 

proposal, Customers would pay a NonPenny Symbol Fee to Add Liquidity 

when trading against a Customer of 

$0.85 per contract, regardless of the 

tier.21 With this proposal, Customers 

would not pay a Non-Penny Symbol Fee 

to Remove Liquidity. 

BX Options Market Makers 

Today, BX Options Market Makers 

pay a Fee to Add Liquidity in Select 

Symbols when trading against a 

Customer which ranges from $0.44 to 

$0.29 per contract.22 Today, BX Options 

Market Makers pay a Fee to Remove 

Liquidity in Select Symbols when 

trading against a Customer which ranges 

from $0.42 to $0.25 per contract.23

Today, BX Options Market Makers pay 

a Fee to Remove Liquidity in Select 

Symbols when trading against a Firm, 

Non-Customer, or BX Options Market 

Maker of $0.46 per contract. Today, BX 

Options Market Makers pay a Fee to 

Add Liquidity in Select Symbols when 

trading against a Non-Customer, BX 

Options Market Maker or Firm which 

ranges from $0.14 to $0.00 per 

contract.24

With this proposal, BX Options 

Market Makers would receive no NonPenny Symbol Rebate to Add Liquidity 

or Non-Penny Rebate to Remove 

Liquidity. With this proposal, BX 

Options Market Makers would pay a 

$0.50 per contract Non-Penny Symbol 

Fee to Add Liquidity when trading 

against a BX Options Market Maker, 

Non-Customer or Firm and a $0.95 per 

contract Non-Penny Symbol Fee to Add 

Liquidity when trading against a 

Customer. With this proposal, BX 

Options Market Makers would pay a 

Non-Penny Symbol Fee to Remove 

Liquidity when trading against a 

Customer which ranges from $0.89 to 

$0.60 per contract.25 With this proposal, 

BX Options Market Makers would pay 

a Non-Penny Symbol Fee to Remove 

Liquidity when trading against a NonCustomer, BX Options Market Maker, or 

Firm of $0.89 per contract, regardless of 

the tier.26

Non-Customers 

Today, Non-Customers pay a Fee to 

Add Liquidity and a Fee to Remove 

Liquidity in Select Symbols of $0.46 per 

contract, regardless of counterparty. 

Today, Non-Customers receive no Select 

Symbol rebates. 

With this proposal, Non-Customers 

would receive no Non-Penny Symbol 

Rebate to Add Liquidity or Non-Penny 

Symbol Rebate to Remove Liquidity. 

With this proposal, Non-Customers 

would pay a Non-Penny Symbol Fee to 

Add Liquidity of $0.98 per contract. 

With this proposal, Non-Customers 

would pay a Non-Penny Symbol Fee to 

Remove Liquidity of $0.89 per contract. 


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82546 Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 

27Tier 1 Participants that remove less than 500 

SPY Options contracts per day in the customer 

range receive a $0.01 per contract rebate. Tier 2 

Participants that remove 500 to not more than 999 

SPY Options contracts per day in the customer 

range receive a $0.10 per contract rebate. Tier 3 

Participants that removes 1000 to not more than 

1999 SPY Options contracts per day in the customer 

range receive a $0.35 per contract rebate. Tier 4 

Participants that remove 2000 to not more than 

3999 SPY Options contracts per day in the customer 

range receive a $0.43 per contract rebate. Tier 5 

Participants that remove more than 3999 SPY 

Options contracts per day in the customer range 

receive a $0.52 per contract rebate. 

28Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would receive no Penny 

Symbol Rebate to Add Liquidity in Tier 1. 

Participants that execute 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month would receive a $0.10 per 

contract Penny Symbol Rebate to Add Liquidity in 

Tier 2. Participants that execute 0.15% or more of 

total industry customer equity and ETF option ADV 

contracts per month would receive a $0.20 per 

contract Penny Symbol Rebate to Add Liquidity in 

Tier 3. 29Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would receive no Penny 

Symbol Rebate to Remove Liquidity in Tier 1. 

Participants that execute 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month would receive a $0.25 per 

contract Penny Symbol Rebate to Remove Liquidity 

in Tier 2. Participants that execute 0.15% or more 

of total industry customer equity and ETF option 

ADV contracts per month will would receive a 

$0.35 per contract Penny Symbol Rebate to Remove 

Liquidity in Tier 3. 

30Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a $0.39 per contract 

Penny Symbol Fee to Add Liquidity in Tier 1. 

Participants that execute 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month would pay a $0.39 per 

contract Penny Symbol Fee to Add Liquidity in Tier 

2. Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month would pay a $0.39 per contract 

Penny Symbol Fee to Add Liquidity in Tier 3. 

31Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a Penny Symbol Fee 

to Remove Liquidity of $0.39 per contract in Tier 

1. Participants that execute 0.05% to less than 

0.15% of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.39 per 

contract in Tier 2. Participants that execute 0.15% 

or more of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.30 per 

contract in Tier 3. 

Firms 

Today, Firms pay a Select Symbol Fee 

to Add Liquidity and a Fee to Remove 

Liquidity of $0.37 per contract, 

regardless of counterparty. Today, Firms 

receive no Select Symbol rebates. 

With this proposal, Firms would 

receive no Non-Penny Symbol Rebate to 

Add Liquidity or Non-Penny Symbol 

Rebate to Remove Liquidity. With this 

proposal, Firms would pay a Non-Penny 

Symbol Fee to Add Liquidity of $0.98 

per contract. With this proposal, Firms 

would pay a Non-Penny Symbol Fee to 

Remove Liquidity of $0.89 per contract. 

SPY 

Today, the SPY Options Tier 

Schedule is as follows: 

SPY OPTIONS TIER SCHEDULE

Rebate to remove liquidity 

(per contract) 

Applied to: Customer 

Trading with: Non-customer, BX options 

market maker, customer, 

or firm 

Tier 1. Participant removes less than 500 SPY Options contracts per day in the customer range ......................... $0.01 

Tier 2. Participant removes 500 to not more than 999 SPY Options contracts per day in the customer range ..... 0.10 

Tier 3. Participant removes 1000 to not more than 1999 SPY Options contracts per day in the customer range 0.35 

Tier 4. Participant removes 2000 to not more than 3999 SPY Options contracts per day in the customer range 0.43 

Tier 5. Participant removes more than 3999 SPY Options contracts per day in the customer range ..................... 0.52 

With respect to the impact on pricing 

for SPY, with this proposal, SPY would 

be priced as a Penny Symbol the 

Exchange notes the below changes in 

pricing. 

Customers 

Today, SPY pays Customer Rebates to 

Remove Liquidity ranging from $0.01 to 

$0.52 per contracts when trading against 

a Non-Customer, BX Options Market 

Maker, Customer or Firm.27 Today, 

Customers pay SPY Fees to Add 

Liquidity of $0.38 per contract when 

contra to another Customer. Today, 

Customers pay no SPY fee or receive a 

SPY rebate for Customer SPY Options 

that add liquidity when contra to a 

Firm, BX Options Market Maker or NonCustomer. 

With this proposal, Customers would 

receive a Penny Symbol Rebate to Add 

Liquidity when trading against a NonCustomer, BX Options Market Maker or 

Firm which ranges from $0.00 to $0.20 

per contract.28 With this proposal, 

Customers would receive a Penny 

Symbol Rebate to Remove Liquidity 

when trading against a Non-Customer, 

BX Options Market Maker, Customer or 

Firm which ranges from $0.00 to $0.35 

per contract.29 With this proposal, 

Customers would pay a Penny Symbol 

Fee to Add Liquidity when trading 

against a Customer of $0.39 per contract, 

regardless of the tier.30 With this 

proposal, Customers would not pay a 

Penny Symbol Fee to Remove Liquidity. 

BX Options Market Makers 

Today, with SPY, BX Options Marker 

Makers are paid no rebates. BX Options 

Market Makers pay a SPY Fee to 

Remove Liquidity of $0.44 per contract 

when trading against a Firm, NonCustomer, or BX Options Market Maker. 

Today, BX Options Market Makers pay 

a SPY Fee to Add Liquidity and a SPY 

Fee to Remove Liquidity of $0.39 per 

contract when trading against a 

Customer. Finally, today, BX Options 

Market Makers pay a SPY Fee to Add 

Liquidity of $0.14 per contract when 

trading against a Firm, BX Options 

Market Maker or Non Customer. 

With this proposal, BX Options 

Market Makers would receive a Penny 

Symbol Rebate to Add Liquidity of 

$0.10 per contract only when the BX 

Options Market Maker is contra to a 

Non-Customer, Firm, or BX Options 

Market Maker. With this proposal, BX 

Options Market Makers would receive 

no Penny Symbol Rebate to Remove 

Liquidity. With this proposal, BX 

Options Market Makers would pay a 

$0.39 per contract Penny Symbol Fee to 

Add Liquidity only when the BX 

Options Market Maker is contra to a 

Customer. With this proposal, BX 

Options Market Makers would pay a 

Penny Symbol Fee to Remove Liquidity 

when trading against a Customer which 

ranges from $0.39 to $0.30 per 

contract.31 With this proposal, BX 

Options Market Makers would pay a 

Penny Symbol Fee to Remove Liquidity 

when trading against a Non-Customer, 


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Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 82547 

32Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a Penny Symbol Fee 

to Remove Liquidity of $0.46 per contract in Tier 

1. Participants that execute 0.05% to less than 

0.15% of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.46 per 

contract in Tier 2. Participants that execute 0.15% 

or more of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.46 per 

contract in Tier 3. 

33 15 U.S.C. 78 f(b). 

34 15 U.S.C. 78f(b)(4) and (5). 

35NetCoalition v. SEC, 615 F.3d 525, 539 (DC Cir. 

2010) (quoting Securities Exchange Act Release No. 

59039 (December 2, 2008), 73 FR 74770, 74782–83 

(December 9, 2008) (SR–NYSEArca-2006–21)). 

36Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) 

(‘‘Regulation NMS Adopting Release’’). 

37Among the Select Symbols noted within 

Options 7, Section 2, the following are Penny 

Symbols: ASHR, DIA, EEM, EFA, EWJ, EWW, EWY, 

EWZ, FAS, FXI, GDX, GLD, HYG, IWM, IYR, KRE, 

OIH, QQQ, RSX, SDS, SLV, SSO, TBT, TLT, TNA, 

UNG, USO, UUP, UVXY, VXX, XLB, XLE, XLF, XLI, 

XLK, XLP, XLU, XLV, XLY, XME, XOP, and XRT. 

38Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would receive no Penny 

Symbol Rebate to Add Liquidity in Tier 1. 

Participants that execute 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month would receive a $0.10 per 

contract Penny Symbol Rebate to Add Liquidity in 

Tier 2. Participants that execute 0.15% or more of 

total industry customer equity and ETF option ADV 

contracts per month would receive a $0.20 per 

contract Penny Symbol Rebate to Add Liquidity in 

Tier 3. 

39Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month receive no Select Symbol 

Rebate to Add Liquidity for Tier 1. Participants that 

executes 0.05% to less than 0.15% of total industry 

customer equity and ETF option ADV contracts per 

month receive a $0.10 per contract Select Symbol 

Rebate to Add Liquidity for Tier 2. Participants that 

execute 0.15% or more of total industry customer 

equity and ETF option ADV contracts per month 

Continued 

BX Options Market Maker or Firm of 

$0.46 per contract, regardless of the 

tier.32

Non-Customers 

Today, Non-Customers pay a SPY Fee 

to Add Liquidity and a SPY Fee to 

Remove Liquidity of $0.44 per contract, 

regardless of counterparty. Today, NonCustomers receive no SPY rebates. 

With this proposal, Non-Customers 

would receive no Penny Symbol Rebate 

to Add Liquidity and no Penny Symbol 

Rebate to Remove Liquidity. With this 

proposal, Non-Customers would pay a 

Penny Symbol Fee to Add Liquidity of 

$0.45 per contract. With this proposal, 

Non-Customers would pay a Penny 

Symbol Fee to Remove Liquidity of 

$0.46 per contract. 

Firms 

Today, Firms pay a SPY Fee to Add 

Liquidity and a SPY Fee to Remove 

Liquidity of $0.41 per contract, 

regardless of counterparty. Today, Firms 

receive no SPY rebates. 

With this proposal, Firms would 

receive no Penny Symbol Rebate to Add 

Liquidity and no Penny Symbol Rebate 

to Remove Liquidity. With this 

proposal, Firms would pay a Penny 

Symbol Fee to Add Liquidity of $0.45 

per contract. With this proposal, Firms 

would pay a Penny Symbol Fee to 

Remove Liquidity of $0.46 per contract. 

The Exchange believes that this 

proposal will simplify its transaction 

fees and rebates by classifying pricing 

for all options symbols as either Penny 

or Non-Penny Symbols. 

Technical Amendments 

The Exchange proposes to remove 

footnote 4, which is currently reserved, 

and renumber current footnote 5 as new 

footnote 4 within Options 7, Section 2. 

The Exchange also proposes to remove 

‘‘(excluding Select Symbols Options)’’ 

from the Fees and Rebates table within 

Options 7, Section 2(1) and from the 

Penny Symbols Tier Schedule title as 

that exclusion is no longer necessary 

because this proposal removes that 

pricing. 

Options 7, Section 3 

The Exchange proposes to amend 

Options 7, Section 3, ‘‘BX Options 

Market—Ports and other Services,’’ to 

remove obsolete text which reflects 

timeframes which have passed. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,33 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,34 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees, and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The Exchange’s proposed changes to 

its Pricing Schedule are reasonable in 

several respects. As a threshold matter, 

the Exchange is subject to significant 

competitive forces in the market for 

options securities transaction services 

that constrain its pricing determinations 

in that market. The fact that this market 

is competitive has long been recognized 

by the courts. In NetCoalition v. 

Securities and Exchange Commission, 

the D.C. Circuit stated as follows: ‘‘[n]o 

one disputes that competition for order 

flow is ‘fierce.’ . . . As the SEC 

explained, ‘[i]n the U.S. national market 

system, buyers and sellers of securities, 

and the broker-dealers that act as their 

order-routing agents, have a wide range 

of choices of where to route orders for 

execution’; [and] ‘no exchange can 

afford to take its market share 

percentages for granted’ because ‘no 

exchange possesses a monopoly, 

regulatory or otherwise, in the execution 

of order flow from broker 

dealers’. . ..’’ 35

The Commission and the courts have 

repeatedly expressed their preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. In Regulation NMS, while 

adopting a series of steps to improve the 

current market model, the Commission 

highlighted the importance of market 

forces in determining prices and SRO 

revenues and, also, recognized that 

current regulation of the market system 

‘‘has been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 36

Numerous indicia demonstrate the 

competitive nature of this market. For 

example, clear substitutes to the 

Exchange exist in the market for options 

security transaction services. The 

Exchange is only one of sixteen options 

exchanges to which market participants 

may direct their order flow. Within this 

environment, market participants can 

freely and often do shift their order flow 

among the Exchange and competing 

venues in response to changes in their 

respective pricing schedules. As such, 

the proposal represents a reasonable 

attempt by the Exchange to increase its 

liquidity and market share relative to its 

competitors. 

Options 7, Section 2 

Select Symbols To Be Priced as Penny 

Symbols 

With respect to pricing certain Select 

Symbols,37 which would be priced as 

Penny Symbols with this proposal, the 

Exchange believes that its proposal is 

reasonable, equitable and not unfairly 

discriminatory for the reasons which 

follow. 

Customers 

While this proposal would offer 

Customers lower Rebates to Add 

Liquidity in Select Symbols when 

trading against Non-Customers, BX 

Options Market Makers, Customer, or 

Firms which range from $0.00 to $0.20 

per contract,38 instead of ranging from 

$0.00 to $0.25 per contract 39 (no Tier 4 


khammond on DSKJM1Z7X2PROD with NOTICES
82548 Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 

receive a $0.20 per contract Select Symbol Rebate 

to Add Liquidity for Tier 3. Participants that 

execute greater than 10,000 PRISM Agency 

Contracts per month; or Participant executes BX 

Options Market Maker volume of 0.30% or more of 

total industry customer equity and ETF options 

ADV per month receive a $0.25 per contract Select 

Symbol Rebate to Add Liquidity for Tier 4. 

40Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would receive no Penny 

Symbol Rebate to Remove Liquidity in Tier 1. 

Participants that execute 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month would receive a $0.25 per 

contract Penny Symbol Rebate to Remove Liquidity 

in Tier 2. Participants that execute 0.15% or more 

of total industry customer equity and ETF option 

ADV contracts per month will would receive a 

$0.35 per contract Penny Symbol Rebate to Remove 

Liquidity in Tier 3. 

41Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month receive no Select Symbol 

Rebate to Remove Liquidity for Tier 1. Participants 

that executes 0.05% to less than 0.15% of total 

industry customer equity and ETF option ADV 

contracts per month receive a $0.25 per contract 

Select Symbol Rebate to Remove Liquidity for Tier 

2. Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month receive a $0.37 per contract 

Select Symbol Rebate to Remove Liquidity for Tier 

3. Participants that execute greater than 10,000 

PRISM Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month receive a $0.37 

per contract Select Symbol Rebate to Remove 

Liquidity for Tier 4. 

42Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a $0.39 per contract 

Penny Symbol Fee to Add Liquidity in Tier 1. 

Participants that execute 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month would pay a $0.39 per 

contract Penny Symbol Fee to Add Liquidity in Tier 

2. Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month would pay a $0.39 per contract 

Penny Symbol Fee to Add Liquidity in Tier 3. 

43Today, Customers pay no Select Symbol Fee To 

Remove Liquidity. 

44Today, BX Options Market Makers receive no 

Select Symbol Rebate to Remove Liquidity. 

45Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.44 per contract in Tier 1. 

Participants that executes 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month pay a Select Symbol Fee 

to Add Liquidity of $0.44 per contract in Tier 2. 

Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.40 per contract in Tier 3. 

Participants that execute greater than 10,000 PRISM 

Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month pay a Select 

Symbol Fee to Add Liquidity of $0.29 per contract 

in Tier 4. 

46Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a Penny Symbol Fee 

to Remove Liquidity of $0.39 per contract in Tier 

1. Participants that execute 0.05% to less than 

0.15% of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.39 per 

contract in Tier 2. Participants that execute 0.15% 

or more of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.30 per 

contract in Tier 3. 

47Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Remove Liquidity of $0.42 per contract in Tier 1. 

Participants that executes 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month pay a Select Symbol Fee 

to Remove Liquidity of $0.42 per contract in Tier 

2. Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Remove Liquidity of $0.39 per contract in Tier 3. 

Participants that execute greater than 10,000 PRISM 

Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month pay a Select 

Symbol Fee to Remove Liquidity of $0.25 per 

contract in Tier 4. 

48Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a Penny Symbol Fee 

to Remove Liquidity of $0.46 per contract in Tier 

1. Participants that execute 0.05% to less than 

0.15% of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.46 per 

contract in Tier 2. Participants that execute 0.15% 

or more of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.46 per 

contract in Tier 3. 

rebate of $0.25 per contract as was the 

case for Select Symbols with this 

proposal), as well as lower Rebates to 

Remove Liquidity in Select Symbols 

when trading against Non-Customers, 

BX Options Market Makers, or Firms 

which range from $0.00 to $0.35 per 

contract,40 instead of $0.00 to $0.37 per 

contract,41 (no Tier 3 and 4 rebate of 

$0.37 per contracts as it was for Select 

Symbols with this proposal), the 

Exchange believes that these rebates 

will continue to incentivize Participants 

to bring Customer liquidity to BX. While 

the Customer Fee to Add Liquidity in 

Select Symbols when contra to another 

Customer would increase from $0.33 to 

$0.39 per contract, regardless of the tier 

for Select Symbols,42 the Exchange 

believes that the fee remains 

competitive and will continue to attract 

order flow to BX to the benefit of all 

market participants. With this proposal, 

Customers would continue to pay no 

Penny Symbol Fee To Remove 

Liquidity.43

All pricing would be uniformly 

assessed to Participants for Penny 

Symbols. Customers would continue to 

receive favorable pricing as compared to 

other market participants because 

Customer liquidity enhances liquidity 

on the Exchange for the benefit of all 

market participants. Specifically, 

Customer liquidity benefits all market 

participants by providing more trading 

opportunities which attracts market 

makers. An increase in the activity of 

these market participants (particularly 

in response to pricing) in turn facilitates 

tighter spreads which may cause an 

additional corresponding increase in 

order flow from other market 

participants. 

BX Options Market Makers 

With this proposal, BX Options 

Market Makers would receive a Penny 

Symbol Rebate to Add Liquidity of 

$0.10 per contract only when the BX 

Options Market Maker is contra to a 

Non-Customer, Firm, or BX Options 

Market Maker. Today, BX Options 

Market Makers receive no Select Symbol 

Rebate to Add Liquidity. This rebate 

will incentivize Participants to send 

order flow to BX. With this proposal, BX 

Options Market Makers would continue 

to receive no Rebate to Remove 

Liquidity.44 With this proposal, BX 

Options Market Makers would pay a 

$0.39 per contract Penny Symbol Fee to 

Add Liquidity only when the BX 

Options Market Maker is contra to a 

Customer as compared to the Select 

Symbol Fee to Add Liquidity for BX 

Options Market Makers which ranges 

from $0.44 to $0.29 per contract,45 as 

such some Participants will pay a higher 

Penny Symbol Fee to Add Liquidity 

while some Participants will pay a 

lower Penny Symbol Fee to Add 

Liquidity. The Exchange believes that 

the fee remains competitive and will 

continue to attract order flow to BX to 

the benefit of all market participants. 

With this proposal, BX Options Market 

Makers would pay a Penny Symbol Fee 

to Remove Liquidity when trading 

against a Customer which ranges from 

$0.39 to $0.30 per contract.46 These fees 

are lower than the current Select 

Symbol Fees to Remove Liquidity when 

trading against a Customer which range 

from $0.42 to $0.25 per contract.47 The 

Exchange believes that these lower fees 

will attract a greater amount of liquidity 

to BX. With this proposal, BX Options 

Market Makers would pay a Penny 

Symbol Fee to Remove Liquidity when 

trading against a Non-Customer, BX 

Options Market Maker or Firm of $0.46 

per contract, regardless of the tier.48

This proposed Penny Symbol Fee to 

Remove Liquidity is the same as the 

current Fee to Remove Liquidity in 

Select Symbols when trading against a 

Firm, Non-Customer, or BX Options 

Market Maker of $0.46 per contract. 

With this proposal BX Options Market 

Makers pay no Penny Symbol Fee to 

Add Liquidity when contra to a NonCustomer, BX Options Market Maker or 

Firm. Today, BX Options Market Makers 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 82549 

49Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.14 per contract in Tier 1. 

Participants that executes 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month pay a Select Symbol Fee 

to Add Liquidity of $0.10 per contract in Tier 2. 

Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.04 per contract in Tier 3. 

Participants that execute greater than 10,000 PRISM 

Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month pay no Select 

Symbol Fee to Add Liquidity in Tier 4. 

50See Options 2, Section 5. 

51See Options 2, Section 4. 

52Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month receive no Select Symbol 

Rebate to Add Liquidity for Tier 1. Participants that 

executes 0.05% to less than 0.15% of total industry 

customer equity and ETF option ADV contracts per 

month receive a $0.10 per contract Select Symbol 

Rebate to Add Liquidity for Tier 2. Participants that 

execute 0.15% or more of total industry customer 

equity and ETF option ADV contracts per month 

receive a $0.20 per contract Select Symbol Rebate 

to Add Liquidity for Tier 3. Participants that 

execute greater than 10,000 PRISM Agency 

Contracts per month; or Participant executes BX 

Options Market Maker volume of 0.30% or more of 

total industry customer equity and ETF options 

ADV per month receive a $0.25 per contract Select 

Symbol Rebate to Add Liquidity for Tier 4. 

53Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would receive no Non-Penny 

Symbol Rebate to Add Liquidity in Tier 1. 

Participants that execute 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month would receive a $0.10 per 

contract Non-Penny Symbol Rebate to Add 

Liquidity in Tier 2. Participants that execute 0.15% 

or more of total industry customer equity and ETF 

option ADV contracts per month will would receive 

a $0.20 per contract Non-Penny Symbol Rebate to 

Add Liquidity in Tier 3. 

54Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would receive a Non-Penny 

Symbol Rebate to Remove Liquidity of $0.80 per 

contract in Tier 1. Participants that execute 0.05% 

to less than 0.15% of total industry customer equity 

and ETF option ADV contracts per month would 

receive a Non-Penny Symbol Rebate to Remove 

Liquidity of $0.80 per contract in Tier 2. 

Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month would receive a Non-Penny 

Symbol Rebate to Remove Liquidity of $0.80 per 

contract in Tier 3. 

55Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month receive no Select Symbol 

Rebate to Remove Liquidity for Tier 1. Participants 

that executes 0.05% to less than 0.15% of total 

industry customer equity and ETF option ADV 

contracts per month receive a $0.25 per contract 

Select Symbol Rebate to Remove Liquidity for Tier 

2. Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month receive a $0.37 per contract 

Select Symbol Rebate to Remove Liquidity for Tier 

3. Participants that execute greater than 10,000 

PRISM Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month receive a $0.37 

per contract Select Symbol Rebate to Remove 

Liquidity for Tier 4. 

56Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a Non-Penny 

Symbol Fee to Add Liquidity of $0.85 per contract 

in Tier 1. Participants that execute 0.05% to less 

than 0.15% of total industry customer equity and 

ETF option ADV contracts per month would pay a 

Non-Penny Symbol Fee to Add Liquidity of $0.85 

per contract in Tier 2. Participants that execute 

0.15% or more of total industry customer equity 

and ETF option ADV contracts per month would 

pay a Non-Penny Symbol Fee to Add Liquidity of 

$0.85 per contract in Tier 3. 

pay a Fee to Add Liquidity in Select 

Symbols when trading against a NonCustomer, BX Options Market Maker or 

Firm which ranges from $0.14 to $0.00 

per contract 49 which would be reduced 

to no fee and attract further liquidity to 

BX. 

All pricing would be uniformly 

assessed to Participants for Penny 

Symbols. BX Options Market Makers 

add value through continuous quoting 50

and are subject to additional 

requirements and obligations 51 that 

other market participants are not. 

Incentivizing Market Makers to provide 

greater liquidity benefits all market 

participants through the quality of order 

interaction. 

Non-Customers 

With this proposal, Non-Customers 

would receive no Penny Symbol Rebate 

to Add Liquidity and no Penny Symbol 

Rebate to Remove Liquidity, as is the 

case today under Select Symbol pricing. 

With this proposal, Non-Customers 

would pay a Penny Symbol Fee to Add 

Liquidity of $0.45 per contract, this fee 

is lower than the current Select Symbol 

Fee to Add Liquidity of $0.46 per 

contract, regardless of counterparty, and 

will attract liquidity to BX. With this 

proposal, Non-Customers would pay a 

Penny Symbol Fee to Remove Liquidity 

of $0.46 per contract that is the same as 

the current Select Symbol Fee to 

Remove Liquidity in Select Symbols of 

$0.46 per contract, regardless of 

counterparty. All pricing would be 

uniformly assessed to Participants for 

Penny Symbols. 

Firms 

With this proposal, Firms would 

receive no Penny Symbol Rebate to Add 

Liquidity and no Penny Symbol Rebate 

to Remove Liquidity, as is the case 

today under Select Symbol pricing. 

With this proposal, Firms would pay a 

Penny Symbol Fee to Add Liquidity of 

$0.45 per contract which is higher than 

the current Select Symbol Firm Fee to 

Add Liquidity of $0.37 per contract, 

regardless of counterparty. With this 

proposal, Firms would pay a Penny 

Symbol Fee to Remove Liquidity of 

$0.46 per contract which is higher than 

the current Select Symbol Firm Fee to 

Remove Liquidity of $0.37 per contract, 

regardless of counterparty. Despite the 

fact that the Penny Symbol Fees to Add 

and Remove Liquidity will be higher, 

the Exchange believes that the fees 

remain competitive and will continue to 

attract order flow to BX to the benefit of 

all market participants. All pricing 

would be uniformly assessed to 

Participants for Penny Symbols. 

Select Symbols To Be Priced as NonPenny Symbols 

With respect to pricing for Select 

Symbols that would be priced as NonPenny Symbols (DXJ, EWT, FAZ, FXE, 

FXP, QID, QLD, SKF, SRS, SSO, TZA, 

URE, UYG, and XHB) with this 

proposal, the Exchange believes that its 

proposal is reasonable, equitable and 

not unfairly discriminatory for the 

reasons which follow. The Exchange 

notes that, today, Select Symbol pricing 

is aligned closer to Penny Symbol 

pricing because the Select Symbols 

noted above which are proposed to be 

priced as Non-Penny Symbols were 

once in the Penny Pilot Program and 

these symbols are currently not in the 

Penny Interval Program. 

Customers 

While this proposal would offer 

Customers lower Non-Penny Symbol 

Rebates to Add Liquidity when trading 

against a Non-Customer, BX Options 

Market Maker or Firm which would 

range from $0.00 to $0.25 per contract,52

instead of ranging from $0.00 to $0.20 

per contract 53 (no Tier 4 rebate of $0.25 

per contract as was the case for Select 

Symbols with this proposal), the 

Exchange believes that these rebates 

will continue to incentivize Participants 

to bring Customer liquidity to BX. With 

this proposal, Customers would receive 

an increased Non-Penny Symbol Rebate 

to Remove Liquidity when trading 

against a Non-Customer, BX Options 

Market Maker, Customer or Firm of 

$0.80 per contract, regardless of the 

tier,54 as compared to the current Rebate 

to Remove Liquidity in Select Symbols 

when trading against Non-Customers, 

BX Options Market Makers, Customers 

or Firms which range from $0.00 to 

$0.37 per contract.55 The Exchange 

believes that these rebates will continue 

to incentivize Participants to bring 

Customer liquidity to BX. With this 

proposal, Customers would pay an 

increased Non-Penny Symbol Fee to 

Add Liquidity when trading against a 

Customer of $0.85 per contract, 

regardless of the tier,56 as compared to 

the current Customer Fee to Add 

Liquidity in Select Symbols when 


khammond on DSKJM1Z7X2PROD with NOTICES
82550 Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 

57Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.14 per contract in Tier 1. 

Participants that executes 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month pay a Select Symbol Fee 

to Add Liquidity of $0.10 per contract in Tier 2. 

Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.04 per contract in Tier 3. 

Participants that execute greater than 10,000 PRISM 

Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month pay no Select 

Symbol Fee to Add Liquidity in Tier 4. 

58Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.44 per contract in Tier 1. 

Participants that executes 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month pay a Select Symbol Fee 

to Add Liquidity of $0.44 per contract in Tier 2. 

Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Add Liquidity of $0.40 per contract in Tier 3. 

Participants that execute greater than 10,000 PRISM 

Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month pay a Select 

Symbol Fee to Add Liquidity of $0.29 per contract 

in Tier 4. 

59Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a Non-Penny 

Symbol Fee to Remove Liquidity of $0.89 per 

contract in Tier 1. Participants that execute 0.05% 

to less than 0.15% of total industry customer equity 

and ETF option ADV contracts per month would 

pay a Non-Penny Symbol Fee to Remove Liquidity 

of $0.89 per contract in Tier 2. Participants that 

execute 0.15% or more of total industry customer 

equity and ETF option ADV contracts per month 

would pay a Non-Penny Symbol Fee to Remove 

Liquidity of $0.60 per contract in Tier 3. 

60Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Remove Liquidity of $0.42 per contract in Tier 1. 

Participants that executes 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month pay a Select Symbol Fee 

to Remove Liquidity of $0.42 per contract in Tier 

2. Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month pay a Select Symbol Fee to 

Remove Liquidity of $0.39 per contract in Tier 3. 

Participants that execute greater than 10,000 PRISM 

Agency Contracts per month; or Participant 

executes BX Options Market Maker volume of 

0.30% or more of total industry customer equity 

and ETF options ADV per month pay a Select 

Symbol Fee to Remove Liquidity of $0.25 per 

contract in Tier 4. 

61Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a Non-Penny 

Symbol Fee to Remove Liquidity of $0.89 per 

contract in Tier 1. Participants that execute 0.05% 

to less than 0.15% of total industry customer equity 

and ETF option ADV contracts per month would 

pay a Non-Penny Symbol Fee to Remove Liquidity 

of $0.89 per contract in Tier 2. Participants that 

execute 0.15% or more of total industry customer 

equity and ETF option ADV contracts per month 

would pay a Non-Penny Symbol Fee to Remove 

Liquidity of $0.89 per contract in Tier 3. 

62See Options 2, Section 5. 

63See Options 2, Section 4. 

contra to another Customer of $0.33 per 

contract. Despite the fact that the NonPenny Symbol Fee to Add and Remove 

Liquidity will be higher, the Exchange 

believes that the fees remain 

competitive and will continue to attract 

order flow to BX to the benefit of all 

market participants. With this proposal, 

Customers would continue not pay a 

Non-Penny Symbol Fee to Remove 

Liquidity. 

All pricing would be uniformly 

assessed to Participants for Non-Penny 

Symbols. Customers would continue to 

receive favorable pricing as compared to 

other market participants because 

Customer liquidity enhances liquidity 

on the Exchange for the benefit of all 

market participants. Specifically, 

Customer liquidity benefits all market 

participants by providing more trading 

opportunities which attracts market 

makers. An increase in the activity of 

these market participants (particularly 

in response to pricing) in turn facilitates 

tighter spreads which may cause an 

additional corresponding increase in 

order flow from other market 

participants. 

BX Options Market Makers 

With this proposal, BX Options 

Market Makers would receive no NonPenny Symbol Rebate to Add Liquidity 

or Non-Penny Rebate to Remove 

Liquidity, as is the case today under 

Select Symbols as well. With this 

proposal, BX Options Market Makers 

would pay a $0.50 per contract NonPenny Symbol Fee to Add Liquidity 

when trading against a BX Options 

Market Maker, Non-Customer or Firm 

and a $0.95 per contract Non-Penny 

Symbol Fee to Add Liquidity when 

trading against a Customer. Currently, 

BX Options Market Makers pay a Fee to 

Add Liquidity in Select Symbols when 

trading against a Non-Customer, BX 

Options Market Maker or Firm which 

ranges from $0.14 to $0.00 per 

contract 57 and BX Options Market 

Makers pay a Fee to Add Liquidity in 

Select Symbols when trading against a 

Customer which ranges from $0.44 to 

$0.29 per contract.58 Despite the fact 

that the Non-Penny Symbol Fees to Add 

Liquidity will be higher, the Exchange 

believes that the fees remain 

competitive and will continue to attract 

order flow to BX to the benefit of all 

market participants. With this proposal, 

BX Options Market Makers would pay 

a Non-Penny Symbol Fee to Remove 

Liquidity when trading against a 

Customer which ranges from $0.89 to 

$0.60 per contract.59 This fee would be 

higher than the current BX Options 

Market Makers pay a Fee to Remove 

Liquidity in Select Symbols when 

trading against a Customer which ranges 

from $0.42 to $0.25 per contract.60 Also, 

with this proposal, BX Options Market 

Makers would pay a Non-Penny Symbol 

Fee to Remove Liquidity when trading 

against a Non-Customer, BX Options 

Market Maker, or Firm of $0.89 per 

contract, regardless of the tier.61 This fee 

would be higher than the current BX 

Options Market Makers pay a Fee to 

Remove Liquidity in Select Symbols 

when trading against a Firm, NonCustomer, or BX Options Market Maker 

of $0.46 per contract. Despite the fact 

that the Non-Penny Symbol Fees to 

Remove Liquidity will be higher, the 

Exchange believes that the fees remain 

competitive and will continue to attract 

order flow to BX to the benefit of all 

market participants. 

All pricing would be uniformly 

assessed to Participants for Non-Penny 

Symbols. BX Options Market Makers 

add value through continuous quoting 62

and are subject to additional 

requirements and obligations 63 that 

other market participants are not. 

Incentivizing Market Makers to provide 

greater liquidity benefits all market 

participants through the quality of order 

interaction. 

Non-Customers 

With this proposal, Non-Customers 

would receive no Non-Penny Symbol 

Rebate to Add Liquidity or Non-Penny 

Symbol Rebate to Remove Liquidity as 

is the case today for Select Symbols. 

With this proposal, Non-Customers 

would pay an increased Non-Penny 

Symbol Fee to Add Liquidity of $0.98 

per contract as compared to the current 

Non-Customer Fee to Add Liquidity in 

Select Symbols of $0.46 per contract, 

regardless of counterparty. Also, with 

this proposal, Non-Customers would 

pay an increased Non-Penny Symbol 

Fee to Remove Liquidity of $0.89 per 

contract as compared to the current 

Non-Customer Fee to Remove Liquidity 

in Select Symbols of $0.46 per contract, 

regardless of counterparty. Despite the 

fact that the Non-Penny Symbol Fees to 

Add and Remove Liquidity will be 

higher, the Exchange believes that the 

fees remain competitive and will 

continue to attract order flow to BX to 

the benefit of all market participants. 

All pricing would be uniformly assessed 

to Participants for Non-Penny Symbols. 

Firms 

With this proposal, Firms would 

receive no Non-Penny Symbol Rebate to 

Add Liquidity or Non-Penny Symbol 

Rebate to Remove Liquidity as is the 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 82551 

64Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would receive no Penny 

Symbol Rebate to Add Liquidity in Tier 1. 

Participants that execute 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month would receive a $0.10 per 

contract Penny Symbol Rebate to Add Liquidity in 

Tier 2. Participants that execute 0.15% or more of 

total industry customer equity and ETF option ADV 

contracts per month would receive a $0.20 per 

contract Penny Symbol Rebate to Add Liquidity in 

Tier 3. 

65Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would receive no Penny 

Symbol Rebate to Remove Liquidity in Tier 1. 

Participants that execute 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month would receive a $0.25 per 

contract Penny Symbol Rebate to Remove Liquidity 

in Tier 2. Participants that execute 0.15% or more 

of total industry customer equity and ETF option 

ADV contracts per month will would receive a 

$0.35 per contract Penny Symbol Rebate to Remove 

Liquidity in Tier 3. 

66Tier 1 Participants that remove less than 500 

SPY Options contracts per day in the customer 

range receive a $0.01 per contract rebate. Tier 2 

Participants that remove 500 to not more than 999 

SPY Options contracts per day in the customer 

range receive a $0.10 per contract rebate. Tier 3 

Participants that removes 1000 to not more than 

1999 SPY Options contracts per day in the customer 

range receive a $0.35 per contract rebate. Tier 4 

Participants that remove 2000 to not more than 

3999 SPY Options contracts per day in the customer 

range receive a $0.43 per contract rebate. Tier 5 

Participants that remove more than 3999 SPY 

Options contracts per day in the customer range 

receive a $0.52 per contract rebate. 

67Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a $0.39 per contract 

Penny Symbol Fee to Add Liquidity in Tier 1. 

Participants that execute 0.05% to less than 0.15% 

of total industry customer equity and ETF option 

ADV contracts per month would pay a $0.39 per 

contract Penny Symbol Fee to Add Liquidity in Tier 

2. Participants that execute 0.15% or more of total 

industry customer equity and ETF option ADV 

contracts per month would pay a $0.39 per contract 

Penny Symbol Fee to Add Liquidity in Tier 3. 

68Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a Penny Symbol Fee 

to Remove Liquidity of $0.39 per contract in Tier 

1. Participants that execute 0.05% to less than 

0.15% of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.39 per 

contract in Tier 2. Participants that execute 0.15% 

or more of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.30 per 

contract in Tier 3. 

case for Select Symbols. With this 

proposal, Firms would pay an increased 

Non-Penny Symbol Fee to Add 

Liquidity of $0.98 per contract as 

compared to the current Firm Fee to 

Add Liquidity in Select Symbols of 

$0.37 per contract, regardless of 

counterparty. With this proposal, Firms 

would pay an increased Non-Penny 

Symbol Fee to Remove Liquidity of 

$0.89 per contract as compared to the 

current Firm Fee to Remove Liquidity in 

Select Symbols of $0.37 per contract, 

regardless of counterparty. Despite the 

fact that the Non-Penny Symbol Fees to 

Add and Remove Liquidity will be 

higher, the Exchange believes that the 

fees remain competitive and will 

continue to attract order flow to BX to 

the benefit of all market participants. 

All pricing would be uniformly assessed 

to Participants for Non-Penny Symbols. 

SPY 

With respect to the impact on pricing 

for SPY that would be priced as a Penny 

Symbol with this proposal, the 

Exchange believes that its proposal is 

reasonable, equitable and not unfairly 

discriminatory for the reasons which 

follow. 

Customers 

With this proposal Customers would 

receive higher Penny Symbol Rebates to 

Add Liquidity when trading against a 

Non-Customer, BX Options Market 

Maker or Firm which range from $0.00 

to $0.20 per contract.64 Today, 

Customers receive no rebate when add 

liquidity in SPY when trading against a 

Non-Customer, BX Options Market 

Maker or Firm. The Exchange believes 

that these increased rebates will 

incentivize Participants to bring 

Customer liquidity to BX. With this 

proposal, Customers would receive a 

lower Penny Symbol Rebate to Remove 

Liquidity when trading against a NonCustomer, BX Options Market Maker, 

Customer or Firm which ranges from 

$0.00 to $0.35 per contract.65 Today, 

Customers receive a SPY Rebate to 

Remove Liquidity when trading against 

a Non-Customer, BX Options Market 

Maker, Customer or Firm which ranges 

from $0.01 to $0.52 per contracts when 

trading against a Non-Customer, BX 

Options Market Maker, Customer or 

Firm.66 Despite the fact that the Penny 

Symbol Rebates to Remove Liquidity in 

will be lower, the Exchange believes 

that the fees remain competitive and 

will continue to attract order flow to BX 

to the benefit of all market participants. 

With this proposal, Customers would 

pay an increased Penny Symbol Fee to 

Add Liquidity when trading against a 

Customer of $0.39 per contract, 

regardless of the tier,67 as compared to 

the current Customer SPY Fees to Add 

Liquidity of $0.38 per contract when 

contra to another Customer. Despite the 

fact that the Penny Symbol Fees to Add 

Liquidity when contra to another 

Customer will be higher than the SPY 

Fee to Add Liquidity when contra to a 

Customer, the Exchange believes that 

the fees remain competitive and will 

continue to attract order flow to BX to 

the benefit of all market participants. 

With this proposal, t will be no Fee to 

Add Liquidity when contra to Firm, BX 

Options Market Maker or Non 

Customer, as is the case today. With this 

proposal, Customers would not pay a 

Penny Symbol Fee to Remove Liquidity 

as is the case for SPY today. 

All pricing would be uniformly 

assessed to Participants for Penny 

Symbols. Customers would continue to 

receive favorable pricing as compared to 

other market participants because 

Customer liquidity enhances liquidity 

on the Exchange for the benefit of all 

market participants. Specifically, 

Customer liquidity benefits all market 

participants by providing more trading 

opportunities which attracts market 

makers. An increase in the activity of 

these market participants (particularly 

in response to pricing) in turn facilitates 

tighter spreads that may cause an 

additional corresponding increase in 

order flow from other market 

participants. 

BX Options Market Makers 

With this proposal, BX Options 

Market Makers would receive a new 

Penny Symbol Rebate to Add Liquidity 

of $0.10 per contract only when the BX 

Options Market Maker is contra to a 

Non-Customer, Firm, or BX Options 

Market Maker, while currently BX 

Options Market Makers receive no 

rebates in SPY. This new rebate will 

incentivize Participants to bring 

liquidity to BX. With this proposal, BX 

Options Market Makers would receive 

no Penny Symbol Rebate to Remove 

Liquidity, as is the case today for SPY. 

With this proposal, BX Options Market 

Makers would pay a $0.39 per contract 

Penny Symbol Fee to Add Liquidity 

only when the BX Options Market 

Maker is contra to a Customer which is 

the same as the current BX Options 

Market Makers SPY Fee to Add 

Liquidity of $0.39 per contract when 

trading against a Customer. With this 

proposal, the Exchange would not 

assess a Penny Symbol Fee to Add 

Liquidity when trading against a Firm, 

BX Options Market Maker or Non 

Customer as compared to today, where 

a BX Options Market Maker pays a SPY 

Fee to Add Liquidity of $0.14 per 

contract when trading against a Firm, 

BX Options Market Maker or Non 

Customer. The removal of this fee 

should incentivize BX Participants to 

send order flow to BX. 

With this proposal, BX Options 

Market Makers would pay a Penny 

Symbol Fee to Remove Liquidity when 

trading against a Customer which ranges 

from $0.39 to $0.30 per contract,68 as 

compared to the current BX Options 


khammond on DSKJM1Z7X2PROD with NOTICES
82552 Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 

69Participants that executes less than 0.05% of 

total industry customer equity and ETF option ADV 

contracts per month would pay a Penny Symbol Fee 

to Remove Liquidity of $0.46 per contract in Tier 

1. Participants that execute 0.05% to less than 

0.15% of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.46 per 

contract in Tier 2. Participants that execute 0.15% 

or more of total industry customer equity and ETF 

option ADV contracts per month would pay a 

Penny Symbol Fee to Remove Liquidity of $0.46 per 

contract in Tier 3. 

70See Options 2, Section 5. 

71See Options 2, Section 4. 

72Among the Select Symbols noted within 

Options 7, Section 2, the following are Penny 

Symbols: ASHR, DIA, EEM, EFA, EWJ, EWW, EWY, 

EWZ, FAS, FXI, GDX, GLD, HYG, IWM, IYR, KRE, 

OIH, QQQ, RSX, SDS, SLV, SSO, TBT, TLT, TNA, 

UNG, USO, UUP, UVXY, VXX, XLB, XLE, XLF, XLI, 

XLK, XLP, XLU, XLV, XLY, XME, XOP, and XRT. 

73See Options 2, Section 5. 

74See Options 2, Section 4. 

Market Maker Fee to Remove Liquidity 

in SPY Options of $0.39 per contract 

when trading with Customer. With this 

proposal, the fee will be lower in certain 

cases depending on the volume tier 

achieved and may attract higher volume 

to the Exchange in an effort to obtain the 

lower fee. With this proposal, BX 

Options Market Makers would pay an 

increased Penny Symbol Fee to Remove 

Liquidity when trading against a NonCustomer, BX Options Market Maker or 

Firm of $0.46 per contract, regardless of 

the tier,69 as compared to the current BX 

Options Market Makers pay a SPY Fee 

to Remove Liquidity of $0.44 per 

contract when trading against a Firm, 

Non-Customer, or BX Options Market 

Maker. Despite the fact that the Penny 

Symbol Fee to Remove Liquidity will be 

higher, the Exchange believes that the 

fees remain competitive and will 

continue to attract order flow to BX to 

the benefit of all market participants. 

All pricing would be uniformly 

assessed to Participants for Penny 

Symbols. BX Options Market Makers 

add value through continuous quoting 70

and are subject to additional 

requirements and obligations 71 that 

other market participants are not. 

Incentivizing Market Makers to provide 

greater liquidity benefits all market 

participants through the quality of order 

interaction. 

Non-Customers 

With this proposal, Non-Customers 

would receive no Penny Symbol Rebate 

to Add Liquidity and no Penny Symbol 

Rebate to Remove Liquidity, as is the 

case today for SPY. With this proposal, 

Non-Customers would pay an increased 

Penny Symbol Fee to Add Liquidity of 

$0.45 per contract as compared to the 

current Non-Customers SPY Fee to Add 

Liquidity of $0.44 per contract, 

regardless of counterparty. With this 

proposal, Non-Customers would pay an 

increased Penny Symbol Fee to Remove 

Liquidity of $0.46 per contract as 

compared to the current Non-Customers 

SPY Fee to Remove Liquidity of $0.44 

per contract, regardless of counterparty. 

Despite the fact that the Penny Symbol 

Fees to Add and Remove Liquidity will 

be higher, the Exchange believes that 

the fees remain competitive and will 

continue to attract order flow to BX to 

the benefit of all market participants. 

All pricing would be uniformly assessed 

to Participants for Penny Symbols. 

Firms 

With this proposal, Firms would 

receive no Penny Symbol Rebate to Add 

Liquidity and no Penny Symbol Rebate 

to Remove Liquidity, as is the case 

today with SPY. With this proposal, 

Firms would pay an increased Penny 

Symbol Fee to Add Liquidity of $0.45 

per contract as compared to the current 

Firm SPY Fee to Add Liquidity of $0.41 

per contract, regardless of counterparty. 

With this proposal, Firms would pay an 

increased Penny Symbol Fee to Remove 

Liquidity of $0.46 per contract as 

compared to the current Firm SPY Fee 

to Remove Liquidity of $0.41 per 

contract, regardless of counterparty. 

Despite the fact that the Penny Symbol 

Fees to Add and Remove Liquidity will 

be higher, the Exchange believes that 

the fees remain competitive and will 

continue to attract order flow to BX to 

the benefit of all market participants. 

All pricing would be uniformly assessed 

to Participants for Penny Symbols. 

Technical Amendments 

The Exchange’s proposal to make 

technical amendments to footnote 4 and 

renumber current footnote within 

Options 7, Section 2, and remove 

‘‘(excluding Select Symbols Options)’’ 

from Options 7, Section 2(1) are 

reasonable, equitable and not unfairly 

discriminatory. 

Options 7, Section 3 

The Exchange’s proposal to amend 

Options 7, Section 3, ‘‘BX Options 

Market—Ports and other Services,’’ is 

reasonable, equitable and not unfairly 

discriminatory as the rule text is 

obsolete in that the text reflects 

timeframes which have passed. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Inter-Market Competition 

The proposal does not impose an 

undue burden on inter-market 

competition. The Exchange believes its 

proposal remains competitive with 

other options markets and will offer 

market participants with another choice 

of where to transact options. The 

Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive, or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

fees to remain competitive with other 

exchanges that have been exempted 

from compliance with the statutory 

standards applicable to exchanges. 

Because competitors are free to modify 

their own fees in response, and because 

market participants may readily adjust 

their order routing practices, the 

Exchange believes that the degree to 

which fee changes in this market may 

impose any burden on competition is 

extremely limited. 

Intra-market Competition 

The proposed amendments do not 

impose an undue burden on intramarket competition. 

Options 7, Section 2 

Select Symbols To Be Priced as Penny 

Symbols 

With respect to pricing certain Select 

Symbols,72 which would be priced as 

Penny Symbols with this proposal, the 

Exchange believes that its proposal does 

not impose an undue burden on 

competition. 

All pricing would be uniformly 

assessed to Participants for Penny 

Symbols. Customers would continue to 

receive favorable pricing as compared to 

other market participants because 

Customer liquidity enhances liquidity 

on the Exchange for the benefit of all 

market participants. Specifically, 

Customer liquidity benefits all market 

participants by providing more trading 

opportunities which attracts market 

makers. An increase in the activity of 

these market participants (particularly 

in response to pricing) in turn facilitates 

tighter spreads which may cause an 

additional corresponding increase in 

order flow from other market 

participants. BX Options Market Makers 

add value through continuous quoting 73

and are subject to additional 

requirements and obligations 74 that 

other market participants are not. 

Incentivizing Market Makers to provide 

greater liquidity benefits all market 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 82553 

75See Options 2, Section 5. 

76See Options 2, Section 4. 

77See Options 2, Section 5. 

78See Options 2, Section 4. 

79 15 U.S.C. 78s(b)(3)(A)(ii). 80 17 CFR 200.30–3(a)(12). 

participants through the quality of order 

interaction. 

Select Symbols to be Priced as NonPenny Symbols 

With respect to pricing for Select 

Symbols which would be priced as NonPenny Symbols (DXJ, EWT, FAZ, FXE, 

FXP, QID, QLD, SKF, SRS, SSO, TZA, 

URE, UYG, and XHB) with this 

proposal, the Exchange believes that its 

proposal does not impose an undue 

burden on competition. 

All pricing would be uniformly 

assessed to Participants for Non-Penny 

Symbols. Customers would continue to 

receive favorable pricing as compared to 

other market participants because 

Customer liquidity enhances liquidity 

on the Exchange for the benefit of all 

market participants. Specifically, 

Customer liquidity benefits all market 

participants by providing more trading 

opportunities which attracts market 

makers. An increase in the activity of 

these market participants (particularly 

in response to pricing) in turn facilitates 

tighter spreads which may cause an 

additional corresponding increase in 

order flow from other market 

participants. All pricing would be 

uniformly assessed to Participants for 

Non-Penny Symbols. BX Options 

Market Makers add value through 

continuous quoting 75 and are subject to 

additional requirements and 

obligations 76 that other market 

participants are not. Incentivizing 

Market Makers to provide greater 

liquidity benefits all market participants 

through the quality of order interaction. 

SPY 

With respect to the impact on pricing 

for SPY which would be priced as a 

Penny Symbol with this proposal, the 

Exchange believes that its proposal does 

not impose an undue burden on 

competition. 

All pricing would be uniformly 

assessed to Participants for Penny 

Symbols. Customers would continue to 

receive favorable pricing as compared to 

other market participants because 

Customer liquidity enhances liquidity 

on the Exchange for the benefit of all 

market participants. Specifically, 

Customer liquidity benefits all market 

participants by providing more trading 

opportunities which attracts market 

makers. An increase in the activity of 

these market participants (particularly 

in response to pricing) in turn facilitates 

tighter spreads which may cause an 

additional corresponding increase in 

order flow from other market 

participants. BX Options Market Makers 

add value through continuous quoting 77

and are subject to additional 

requirements and obligations 78 that 

other market participants are not. 

Incentivizing Market Makers to provide 

greater liquidity benefits all market 

participants through the quality of order 

interaction. 

Technical Amendments 

The Exchange’s proposal to make 

technical amendments to footnote 4 and 

renumber current footnote within 

Options 7, Section 2, and remove 

‘‘(excluding Select Symbols Options)’’ 

from Options 7, Section 2(1) do not 

impose an undue burden on 

competition. 

Options 7, Section 3 

The Exchange’s proposal to amend 

Options 7, Section 3, ‘‘BX Options 

Market—Ports and other Services,’’ does 

not impose an undue burden on 

competition as the rule text is obsolete 

in that the text reflects timeframes 

which have passed. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.79

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

BX–2020–037 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–BX–2020–037. 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 (http://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 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–BX–2020–037 and should 

be submitted on or before January 8, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.80

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–27838 Filed 12–17–20; 8:45 am] 

BILLING CODE 8011–01–P 


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