7746 Federal Register / Vol. 89, No. 24 / Monday, February 5, 2024 / Notices 

1See Docket No. RM2018–3, Order Adopting 

Final Rules Relating to Non-Public Information, 

June 27, 2018, Attachment A at 19–22 (Order No. 

4679). 

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

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed 

pricing changes on November 28, 2023 (SR–MRX– 

2023–23) to be effective on December 1, 2023. On 

December 5, 2023, the Exchange withdrew SR– 

MRX–2023–23 and replaced it with SR–MRX– 

2023–25. On January 16, 2023, the Exchange 

withdrew SR–MRX–2023–25 and submitted this 

filing. 

Service request, the title of each Postal 

Service request, the request’s acceptance 

date, and the authority cited by the 

Postal Service for each request. For each 

request, the Commission appoints an 

officer of the Commission to represent 

the interests of the general public in the 

proceeding, pursuant to 39 U.S.C. 505 

(Public Representative). Section II also 

establishes comment deadline(s) 

pertaining to each request. 

The public portions of the Postal 

Service’s request(s) can be accessed via 

the Commission’s website (http://

www.prc.gov). Non-public portions of 

the Postal Service’s request(s), if any, 

can be accessed through compliance 

with the requirements of 39 CFR 

3011.301.1

The Commission invites comments on 

whether the Postal Service’s request(s) 

in the captioned docket(s) are consistent 

with the policies of title 39. For 

request(s) that the Postal Service states 

concern Market Dominant product(s), 

applicable statutory and regulatory 

requirements include 39 U.S.C. 3622, 39 

U.S.C. 3642, 39 CFR part 3030, and 39 

CFR part 3040, subpart B. For request(s) 

that the Postal Service states concern 

Competitive product(s), applicable 

statutory and regulatory requirements 

include 39 U.S.C. 3632, 39 U.S.C. 3633, 

39 U.S.C. 3642, 39 CFR part 3035, and 

39 CFR part 3040, subpart B. Comment 

deadline(s) for each request appear in 

section II. 

II. Docketed Proceeding(s) 

1. Docket No(s).: CP2023–45; Filing 

Title: USPS Notice of Amendment to 

Priority Mail, First-Class Package 

Service & Parcel Select Contract 4, Filed 

Under Seal; Filing Acceptance Date: 

January 30, 2024; Filing Authority: 39 

CFR 3035.105; Public Representative: 

Almaroof Agoro; Comments Due: 

February 7, 2024. 

2. Docket No(s).: MC2024–170 and 

CP2024–176; Filing Title: USPS Request 

to Add Priority Mail & USPS Ground 

Advantage Contract 177 to Competitive 

Product List and Notice of Filing 

Materials Under Seal; Filing Acceptance 

Date: January 30, 2024; Filing Authority: 

39 U.S.C. 3642, 39 CFR 3040.130 

through 3040.135, and 39 CFR 3035.105; 

Public Representative: Samuel 

Robinson; Comments Due: February 7, 

2024. 

3. Docket No(s).: MC2024–171 and 

CP2024–177; Filing Title: USPS Request 

to Add Priority Mail & USPS Ground 

Advantage Contract 178 to Competitive 

Product List and Notice of Filing 

Materials Under Seal; Filing Acceptance 

Date: January 30, 2024; Filing Authority: 

39 U.S.C. 3642, 39 CFR 3040.130 

through 3040.135, and 39 CFR 3035.105; 

Public Representative: Christopher C. 

Mohr; Comments Due: February 7, 2024. 

4. Docket No(s).: MC2024–172 and 

CP2024–178; Filing Title: USPS Request 

to Add Priority Mail & USPS Ground 

Advantage Contract 179 to Competitive 

Product List and Notice of Filing 

Materials Under Seal; Filing Acceptance 

Date: January 30, 2024; Filing Authority: 

39 U.S.C. 3642, 39 CFR 3040.130 

through 3040.135, and 39 CFR 3035.105; 

Public Representative: Christopher C. 

Mohr; Comments Due: February 7, 2024. 

5. Docket No(s).: MC2024–173 and 

CP2024–179; Filing Title: USPS Request 

to Add Priority Mail Express, Priority 

Mail & USPS Ground Advantage 

Contract 44 to Competitive Product List 

and Notice of Filing Materials Under 

Seal; Filing Acceptance Date: January 

30, 2024; Filing Authority: 39 U.S.C. 

3642, 39 CFR 3040.130 through 

3040.135, and 39 CFR 3035.105; Public 

Representative: Christopher C. Mohr; 

Comments Due: February 7, 2024. 

6. Docket No(s).: MC2024–174 and 

CP2024–180; Filing Title: USPS Request 

to Add Priority Mail Express, Priority 

Mail, USPS Ground Advantage & Parcel 

Select Contract 4 to Competitive 

Product List and Notice of Filing 

Materials Under Seal; Filing Acceptance 

Date: January 30, 2024; Filing Authority: 

39 U.S.C. 3642, 39 CFR 3040.130 

through 3040.135, and 39 CFR 3035.105; 

Public Representative: Christopher C. 

Mohr; Comments Due: February 7, 2024. 

This Notice will be published in the 

Federal Register. 

Jennie L. Jbara, 

Alternate Certifying Officer. 

[FR Doc. 2024–02188 Filed 2–2–24; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99451; File No. SR–MRX– 

2024–02] 

Self-Regulatory Organizations; Nasdaq 

MRX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Options 7, 

Section 6 

January 30, 2024. 

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 January 

16, 2024, Nasdaq MRX, LLC (‘‘MRX’’ 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 its 

Rules at Options 7, Section 6, Ports and 

Other Services.3

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/mrx/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 

Options 7, Section 6, Ports and Other 

Services. Specifically, the Exchange 

proposes to amend the monthly caps for 


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Federal Register / Vol. 89, No. 24 / Monday, February 5, 2024 / Notices 7747 

4 ‘‘Specialized Quote Feed’’ or ‘‘SQF’’ is an 

interface that allows Market Makers to connect, 

send, and receive messages related to quotes, 

Immediate-or-Cancel Orders, and auction responses 

to the Exchange. Features include the following: (1) 

options symbol directory messages (e.g., underlying 

and complex instruments); (2) system event 

messages (e.g., start of trading hours messages and 

start of opening); (3) trading action messages (e.g., 

halts and resumes); (4) execution messages; (5) 

quote messages; (6) Immediate-or-Cancel Order 

messages; (7) risk protection triggers and purge 

notifications; (8) opening imbalance messages; (9) 

auction notifications; and (10) auction responses. 

The SQF Purge Interface only receives and notifies 

of purge requests from the Market Maker. Market 

Makers may only enter interest into SQF in their 

assigned options series. Immediate-or-Cancel 

Orders entered into SQF are not subject to the (i) 

Order Price Protection, Market Order Spread 

Protection, and Size Limitation Protection in 

Options 3, Section 15(a)(1)(A), (1)(B), and (2)(B) 

respectively, for single leg orders, or (ii) Complex 

Order Price Protection as defined in Options 3, 

Section 16(c)(1) for Complex Orders. See 

Supplementary Material .03(c) to Options 3, Section 

7. 

5SQF Purge is a specific port for the SQF 

interface that only receives and notifies of purge 

requests from the Market Maker. Dedicated SQF 

Purge Ports enable Market Makers to seamlessly 

manage their ability to remove their quotes in a 

swift manner. The SQF Purge Port is designed to 

assist Market Makers in the management of, and 

risk control over, their quotes. Market Makers may 

utilize a purge port to reduce uncertainty and to 

manage risk by purging all quotes in their assigned 

options series. Of note, Market Makers may only 

enter interest into SQF in their assigned options 

series. Additionally, the SQF Purge Port may be 

utilized by a Market Maker in the event that the 

Member has a system issue and determines to purge 

its quotes from the order book. 

6Today, 63% of Market Makers cap their SQF 

Ports and SQF Purge Ports on MRX. The Exchange 

notes that of the Market Makers currently registered 

on MRX, there is a mix of size of Market Makers 

that cap. 

7For example, a Market Maker may desire to 

utilize multiple SQF Ports for accounting purposes, 

to measure performance, for regulatory reasons or 

other determinations that are specific to that 

Member. 8MRX Market Makers have various regulatory 

requirements as provided for in Options 2, Section 

4. Additionally, MRX Market Makers have certain 

quoting requirements with respect to their assigned 

options series as provided in Options 2, Section 5. 

SQF Ports are the only quoting protocol available 

on MRX and only Market Makers may utilize SQF 

Ports. The same is true for SQF Purge Ports. 

9See Securities Exchange Act Release No. 96120 

(October 21, 2022), 87 FR 65105 (October 27, 2022) 

(SR–MRX–2022–21) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

To Amend Options 7 in Connection With a 

Technology Migration). 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(4) and (5). 

12NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. 

Cir. 2010) (quoting Securities Exchange Act Release 

No. 59039 (December 2, 2008), 73 FR 74770, 74782– 

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

13Securities Exchange Act Release No. 51808 

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

(‘‘Regulation NMS Adopting Release’’). 

SQF Ports 4 and SQF Purge Ports.5 The 

Exchange also proposes to remove 

unnecessary rule text from Options 7, 

Section 6 related to a technology 

migration. Both changes are explained 

below. 

Today, MRX assesses $1,250 per port, 

per month for an SQF Port as well as an 

SQF Purge Port. Today, MRX waives 

one SQF Port fee per Market Maker per 

month. Also, today, SQF Ports and SQF 

Purge Ports are subject to a monthly cap 

of $17,500, which cap is applicable to 

Market Makers. 

At this time, the Exchange proposes to 

increase the SQF Port and SQF Purge 

Port monthly cap fee of $17,500 per 

month to $27,500 per month.6 The 

Exchange is not amending the $1,250 

per port, per month SQF Port and SQF 

Purge Port fees and the Exchange would 

continue to waive one SQF Port fee per 

Market Maker per month. As is the case 

today, the Exchange would not assess a 

Member an SQF Port or SQF Purge Port 

fee beyond the monthly cap once the 

Member has exceeded the monthly cap 

for the respective month. Despite 

increasing the monthly cap for SQF 

Ports and SQF Purge Ports from $17,500 

per month to $27,500 per month, the 

Exchange will continue to offer 

Members the opportunity to cap their 

SQF Port and SQF Purge Port fees so 

that they would not be assessed these 

fees beyond the cap. Further, an MRX 

Market Maker requires only one SQF 

Port to submit quotes in its assigned 

options series into MRX. An MRX 

Market Maker may submit all quotes 

through one SQF Port and utilize one 

SQF Purge Port to view its purge 

requests. While a Market Maker may 

elect to obtain multiple SQF Ports and 

SQF Purge Ports to organize its 

business,7 only one SQF Port and SQF 

Purge Port is necessary for a Market 

Maker to fulfill its regulatory quoting 

obligations.8

The Exchange proposes to remove the 

italicized language in Options 7, Section 

6 related to a technology migration that 

took place in 2022. In 2022, MRX filed 

a pricing change 9 to permit Members to 

request certain duplicative ports at no 

additional cost, from November 1, 2022 

through December 30, 2022, to facilitate 

a technology migration. The rule text 

related to the 2022 technology migration 

is no longer necessary because the 

migration is complete and the pricing is 

no longer applicable. At this time, the 

Exchange proposes to remove this rule 

text. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with section 6(b) 

of the Act,10 in general, and furthers the 

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

of the Act,11 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 proposed pricing change to 

increase the monthly cap applicable to 

SQF Ports and SQF Purge Ports is 

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 brokerdealers 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’. . . .’’ 12

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.’’ 13

Numerous indicia demonstrate the 

competitive nature of this market. 

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. 

The proposed pricing change to 

increase the SQF Port and SQF Purge 

Port monthly cap from $17,500 per 

month to $27,500 per month is 

reasonable because despite the increase 

in the monthly cap, the Exchange will 

continue to offer Members the 

opportunity to cap their SQF Port and 

SQF Purge Port fees so that they would 

not be assessed these fees beyond the 

cap. Additionally, an MRX Market 

Maker requires only one SQF Port to 

submit quotes in its assigned options 


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7748 Federal Register / Vol. 89, No. 24 / Monday, February 5, 2024 / Notices 

14For example, a Market Maker or may desire to 

utilize multiple SQF Ports for accounting purposes, 

to measure performance, for regulatory reasons or 

other determinations that are specific to that 

Member. 

15MRX Market Makers have various regulatory 

requirements as provided for in Options 2, Section 

4. Additionally, MRX Market Makers have certain 

quoting requirements with respect to their assigned 

options series as provided in Options 2, Section 5. 

SQF Ports are the only quoting protocol available 

on MRX and only Market Makers may utilize SQF 

Ports. 

16See Options 2, Sections 4 and 5. 

17See Options 3, Section 8. 

18See Options 7, Section 5, E. 

19See Options 7, Section 5, F. 

20See Securities Exchange Act Release No. 95412 

(June 23, 2022), 87 FR 38786 (June 29, 2022) (SR– 

NYSEArca–2022–36). NYSE Arca proposed to 

increase both the monthly fee per Market Maker 

OTP and the number of issues covered by each 

additional OTP because, among other reasons, the 

number of issues traded on the Exchange has 

increased significantly in recent years. 

21 Id at 38788. 22 Id at 38790. 

series into MRX. An MRX Market Maker 

may submit all quotes through one SQF 

Port and utilize one SQF Purge Port to 

view its purge requests. While a Market 

Maker may elect to obtain multiple SQF 

Ports and SQF Purge Ports to organize 

its business,14 only one SQF Port and 

SQF Purge Port is necessary for a Market 

Maker to fulfill its regulatory quoting 

obligations.15 Additionally, the 

Exchange believes that the caps are 

reasonable for two reasons. 

First, SQF Ports are a secure method 

for Market Makers to submit quotes into 

the Exchange’s match engine and for the 

Exchange to send messages related to 

those quotes to Market Makers. MRX 

must manage the security and message 

traffic, among other things, for each 

port. Utilizing the cap to manage a 

Market Maker’s costs while also 

managing the quantity of SQF Ports 

issued on MRX has led the Exchange to 

select $27,500 as the amended monthly 

cap for SQF Ports and SQF Purge Ports. 

By capping the ports at a different level, 

the Exchange is considering the message 

traffic and message rates associated with 

the current number of outstanding ports 

and its ability to process messages. The 

ability to have a cap and amend that cap 

permits the Exchange to scale its needs 

with respect to processing messages in 

an efficient manner. 

Second, the Exchange notes that 

multiple ports are not necessary, 

however, to the extent that some Market 

Makers elect to obtain multiple ports, 

the Exchange is offering to cap their 

total port cost at $27,500 per month. 

MRX believes the existence of a cap 

allows for efficiencies and permits 

Market Makers to increase their number 

of ports beyond the cap. The cap levels 

the playing field by allowing those 

Market Makers that want to obtain a 

larger number of ports to do so with the 

certainty of a fee cap. Without the cap, 

MRX Market Makers may pay more to 

obtain multiple ports on MRX. 

The Exchange’s proposed pricing 

change to increase the SQF Port and 

SQF Purge Port monthly cap from 

$17,500 per month to $27,500 per 

month is equitable and not unfairly 

discriminatory because the Exchange 

would uniformly not assess any Market 

Makers that exceeded the proposed 

monthly cap any SQF Port and SQF 

Purge Port fees for that month beyond 

the cap. Market Makers are the only 

market participants that are assessed 

SQF Port and SQF Purge Port fees 

because they are the only market 

participants that are permitted to quote 

on the Exchange. Unlike other market 

participants, Market Makers are subject 

to market making and quoting 

obligations.16 These liquidity providers 

are critical market participants in that 

they are the only market participants 

that provide liquidity to MRX on a 

continuous basis. In addition, the 

Exchange notes that Lead Market 

Makers are required to submit quotes in 

the Opening Process to open an options 

series.17 Market Makers are subject to a 

number of fees, unlike other market 

participants. Market Makers pay 

separate Membership Fees,18 and CMM 

Trading Right Fees,19 in addition to 

other fees paid by other market 

participants. Providing Market Makers a 

means to cap their cost related to 

quoting and enabling all Market Makers 

to acquire SQF Ports and SQF Purge 

Ports at no cost beyond a certain dollar 

amount enables these market 

participants to provide the necessary 

liquidity to MRX at lower costs. 

In 2022, NYSE Arca, Inc. (‘‘NYSE 

Arca’’) proposed to restructure fees 

relating to OTPs for Market Makers.20 In 

that rule change,21 NYSE Arca argued 

that, 

Market Makers serve a unique and 

important function on the Exchange (and 

other options exchanges) given the quotedriven nature of options markets. Because 

options exchanges rely on actively quoting 

Market Makers to facilitate a robust 

marketplace that attracts order flow, options 

exchanges must attract and retain Market 

Makers, including by setting competitive 

Market Maker permit fees. Stated otherwise, 

changes to Market Maker permit fees can 

have a direct effect on the ability of an 

exchange to compete for order flow. The 

Exchange also believes that the number of 

options exchanges on which Market Makers 

can effect option transactions also ensures 

competition in the marketplace and 

constrains the ability of exchanges to charge 

supracompetitive fees for access to its market 

by Market Makers. 

Further, NYSE ARCA noted that,22

The Exchange further believes that its 

ability to set Market Maker permit fees is 

constrained by competitive forces based on 

the fact that Market Makers can, and have, 

chosen to terminate their status as a Market 

Maker if they deem Market Maker permit fees 

to be unreasonable or excessive. Specifically, 

the Exchange notes that a BOX participant 

modified its access to BOX in connection 

with the implementation of a proposed 

change to BOX’s Market Maker permit fees. 

The Exchange has also observed that another 

options exchange group experienced 

decreases in market share following its 

proposed modifications of its access fees 

(including Market Maker trading permit fees), 

suggesting that market participants 

(including Market Makers) are sensitive to 

changes in exchanges’ access fees and may 

respond by shifting their order flow 

elsewhere if they deem the fees to be 

unreasonable or excessive. 

There is no requirement, regulatory or 

otherwise, that any Market Maker connect to 

and access any (or all of) the available 

options exchanges. The Exchange also is not 

aware of any reason why a Market Maker 

could not cease being a permit holder in 

response to unreasonable price increases. 

The Exchange does not assess any 

termination fee for a Market Maker to drop 

its OTP, nor is the Exchange aware of any 

other costs that would be incurred by a 

Market Maker to do so. 

The Exchange likewise believes that 

its ability to cap SQF Port and SQF 

Purge fees is constrained by competitive 

forces and that its proposed 

modifications to the SQF Port and SQF 

Purge Fee cap is reasonably designed in 

consideration of the competitive 

environment in which the Exchange 

operates, by balancing the value of the 

enhanced benefits available to Market 

Makers due to the current level of 

activity on the Exchange with a fee 

structure that will continue to incent 

Market Makers to support increased 

liquidity, quote competition, and 

trading opportunities on the Exchange, 

for the benefit of all market participants. 

The Exchange’s proposal to remove 

the italicized language in Options 7, 

Section 6 related to a technology 

migration that took place in 2022 is 

reasonable, equitable and not unfairly 

discriminatory because the rule text 

related to the technology migration is no 

longer necessary because the migration 

is complete and the fees are no longer 

applicable. No Member is subject to the 

pricing described for the 2022 

technology migration. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 


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Federal Register / Vol. 89, No. 24 / Monday, February 5, 2024 / Notices 7749 

23See Securities Exchange Act Release No. 95412 

(June 23, 2022), 87 FR 38786 (June 29, 2022) (SR– 

NYSEArca–2022–36). 

24See Securities Exchange Act No. 96824 

(February 7, 2023), 88 FR 8975 (February 10, 2023) 

(SR–MRX–2023–05) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

To Amend MRX Options 7, Section 6). 

25 Id at 8976. 

26See Options 2, Sections 4 and 5. 

27See Options 3, Section 8. 

28See Options 7, Section 5, E. 

29See Options 7, Section 5, F. 30 15 U.S.C. 78s(b)(3)(A)(ii). 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Intermarket Competition 

The proposal does not impose an 

undue burden on intermarket 

competition. The Exchange believes its 

proposal remains competitive with 

other options markets who also offer 

order entry protocols. 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. In such 

an environment, the Exchange must 

continually adjust its fees to remain 

competitive with other 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. Other exchanges 

have been permitted to amend certain 

costs attributed to Market Makers.23

Further, in 2022, MRX proposed a 

monthly cap for SQF Ports and SQF 

Purge Ports of 17,500.24 MRX noted in 

its rule change that, ‘‘Only one SQF 

quote protocol is required for an MRX 

Market Maker to submit quotes into 

MRX and to meet its regulatory 

requirements.’’ 25

If the Commission were to apply a 

different standard of review this 

proposal than it applied to other 

exchange fee filings, where Market 

Maker fees were increased and port fee 

caps were established, it would create a 

burden on competition such that it 

would impair MRX’s ability to compete 

among other options markets. 

Intramarket Competition 

The Exchange’s proposed pricing 

change to increase the SQF Port and 

SQF Purge Port monthly cap from 

$17,500 per month to $27,500 per 

month does not impose an undue 

burden on competition because the 

Exchange would uniformly not assess 

any Market Makers that exceeded the 

proposed monthly cap any SQF Port 

and SQF Purge Port fees for that month 

beyond the cap. Market Makers are the 

only market participants that are 

assessed SQF Port and SQF Purge Port 

fees because they are the only market 

participants that are permitted to quote 

on the Exchange. Unlike other market 

participants, Market Makers are subject 

to market making and quoting 

obligations.26 These liquidity providers 

are critical market participants in that 

they are the only market participants 

that provide liquidity to MRX on a 

continuous basis. In addition, the 

Exchange notes that Lead Market 

Makers are required to submit quotes in 

the Opening Process to open an options 

series.27 Market Makers are subject to a 

number of fees, unlike other market 

participants. Market Makers pay 

separate Membership Fees,28 and CMM 

Trading Right Fees,29 in addition to 

other fees paid by other market 

participants. Providing Market Makers a 

means to cap their cost related to 

quoting and enabling all Market Makers 

to acquire SQF Ports and SQF Purge 

Ports at no cost beyond a certain dollar 

amount enables these market 

participants to provide the necessary 

liquidity to MRX at lower costs. 

Therefore, because Market Makers fulfill 

a unique role on the Exchange, are the 

only market participant required to 

submit quotes as part of their 

obligations to operate on the Exchange, 

and, in light of that role, they are 

eligible for certain incentives. The 

proposed SQF Port and SQF Purge Fee 

cap is designed to continue to incent 

Market Makers to quote on MRX, 

thereby promoting liquidity, quote 

competition, and trading opportunities. 

The Exchange’s proposal to remove 

the italicized language in Options 7, 

Section 6 related to a technology 

migration that took place in 2022 does 

not impose an undue burden on 

competition because the rule text 

related to the technology migration is no 

longer necessary because the migration 

is complete and the fees are no longer 

applicable. No Member is subject to the 

pricing described for the 2022 

technology migration. 

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.30 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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

MRX–2024–02 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–MRX–2024–02. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 


lotter on DSK11XQN23PROD with NOTICES1
7750 Federal Register / Vol. 89, No. 24 / Monday, February 5, 2024 / Notices 

31 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The Exchange originally filed to amend the Fee 

Schedule on January 2, 2024 (NYSEAmer–2023–69) 

[sic] and withdrew such filing on January 12, 2024 

(SR–NYSEAmer–2024–05) [sic], which latter filing 

the Exchange withdrew on January 25, 2024. 

5See Fee Schedule, Section III.E.1., Floor Broker 

Fixed Cost Prepayment Incentive Program (the ‘‘FB 

Prepay Program’’). ‘‘Eligible Fixed Costs’’ include 

monthly ATP Fees, the Floor Access Fee, and 

certain monthly Floor communication, 

connectivity, equipment and booth or podia fees, as 

set forth in the table in Section III.E.1. The 

Exchange notes that the FB Prepay Program is 

currently structured similarly to the Floor Broker 

prepayment program offered by its affiliated 

exchange, NYSE Arca, Inc. (‘‘NYSE Arca’’). See 

NYSE Arca Options Fee Schedule, FLOOR BROKER 

FIXED COST PREPAYMENT INCENTIVE 

PROGRAM (the ‘‘FB Prepay Program’’). 

6See Fee Schedule, Section III.E.2., Floor Broker 

Manual Billable Incentive Program. 

7See Fee Schedule, Section III.E. The Exchange 

proposes to remove the preamble to Section III.E., 

which relates to the Exchange’s already-completed 

migration to the Pillar trading platform, because the 

text is no longer applicable and its removal would 

add clarity to the Fee Schedule. See proposed Fee 

Schedule, Section III.E. 

8See Fee Schedule, Section III.E (providing, in 

relevant part, that the notification ‘‘email to enroll 

in the Program must originate from an officer of the 

Floor Broker organization and, except as provided 

for below, represents a binding commitment 

through the end of the following calendar year.’’). 

The Exchange proposes to modify Section III.E. of 

the Fee Schedule to remove the now obsolete 

phrase ‘‘except as provided for below,’’ as there is 

no exception to the notification requirement, which 

modification will add clarity, transparency, and 

internal consistency to the Fee Schedule. See 

proposed Fee Schedule, Section III.E. 

9To effect the proposed change to eliminate the 

Floor Broker Manual Billable Incentive Program 

and related rebates, the Exchange proposes to delete 

in its entirety Section III.E.2. of the Fee Schedule. 

In addition, for consistency, the Exchange proposes 

to delete from the Table of Contents reference to 

this Section III.E.2., which is currently (and 

erroneously) listed as ‘‘Reserved’’. See proposed Fee 

Schedule, Table of Contents. 

10See proposed Fee Schedule, Section III.E.1 

(excluding QCC transactions from volume 

calculation ‘‘unless otherwise specified’’), which 

would add clarity, transparency, and internal 

consistency to the Fee Schedule. For certain volume 

thresholds (i.e., those based solely on ‘‘manual 

billable sides’’), the Exchange proposes to continue 

to exclude QCC volume from the calculation of 

eligible volume for rebates paid through the Manual 

Billable Rebate Program because Floor Brokers 

would continue to be eligible for separate credits 

and rebates for QCC transactions through the QCC 

Billable Bonus Rebate. 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–MRX–2024–02 and should be 

submitted on or before February 26, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–02162 Filed 2–2–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99449; File No. SR– 

NYSEAMER–2024–06] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Modify the NYSE 

American Options Fee Schedule 

January 30, 2024. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on January 

25, 2024, NYSE American LLC (‘‘NYSE 

American’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to modify the 

NYSE American Options Fee Schedule 

(‘‘Fee Schedule’’). The Exchange 

proposes to implement the fee change 

effective January 25, 2024.4 The 

proposed rule change is available on the 

Exchange’s website at www.nyse.com, at 

the principal office of the Exchange, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this filing [sic] to 

amend the Fee Schedule in a number of 

ways as described herein. The Exchange 

proposes to implement the rule change 

on January 25, 2024. 

First, the Exchange proposes to 

modify the Fee Schedule to remove 

reference to costs that are no longer 

charged and are therefore inapplicable. 

Specifically, the Exchange proposes to 

modify the Fee Schedule to remove 

‘‘Login’’ costs from Sections III.E.1 and 

IV and to remove ‘‘Floor Broker 

Handheld’’ costs from Section IV. 

Next, the Exchange proposes to 

modify the Floor Broker Fixed Cost 

Prepayment Incentive Program (the ‘‘FB 

Prepay Program’’ or ‘‘Program’’), a 

prepayment incentive program that 

allows Floor Brokers to prepay certain 

of their annual Eligible Fixed Costs in 

exchange for the opportunity to qualify 

for certain volume rebates.5 Specifically, 

the Manual Billable Volume Rebate is 

designed to encourage Floor Brokers to 

increase their monthly volume in 

billable manual contract sides to qualify 

for a rebate; increasing volumes qualify 

the Floor Broker for a higher level of 

rebate. Additional rebates may be 

earned by meeting the qualification 

levels of the Floor Broker Manual 

Billable Incentive Program.6

Participating Floor Brokers receive their 

rebates payable on a monthly basis.7

Floor Brokers that wish to participate in 

the FB Prepay Program for the following 

calendar year must notify the Exchange 

no later than the last business day of 

December in the current year.8

The Exchange proposes to eliminate 

the Floor Broker Manual Billable 

Incentive Program and accompanying 

monthly rebates 9 and instead provide 

Floor Brokers participating in the FB 

Prepay Program with enhanced 

opportunities for monthly rebates based 

on manual billable transaction volume 

(the ‘‘Manual Billable Rebate Program’’) 

and the QCC Billable Bonus Rebate. The 

calculation of volume on which rebates 

earned through the Manual Billable 

Rebate Program would be paid is based 

on transactions for which at least one 

side is subject to manual transaction 

fees and excludes volume from QCC 

transactions, unless otherwise 

specified.10 The Exchange proposes to 


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