90798 Federal Register / Vol. 89, No. 222 / Monday, November 18, 2024 / Notices 

24 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. 

4See proposed Fee Schedule, Sections III.E.1 and 

I.F. (providing, in relevant, part that Floor Broker 

credits paid for QCC trades and rebates paid 

through the Manual Billable Rebate Program shall 

not combine to exceed $2,500,000 per month per 

Floor Broker firm). The Exchange notes that the 

Manual Billable Rebate Program is available only to 

Floor Brokers that participate in the FB Prepay 

Program. See Fee Schedule, Section III.E.1. As such, 

the proposed increase to the QCC Cap would 

likewise encourage more Floor Brokers to 

participate in this Program. 

5The Exchange notes that the Manual Billable 

Rebate Program is available only to Floor Brokers 

that participate in the FB Prepay Program. See Fee 

Schedule, Section III.E.1. As such, the proposed 

increase to the QCC Cap would likewise encourage 

more Floor Brokers to participate in this Program. 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(4) and (5). 

8See Securities Exchange Act Release No. 51808 

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

(S7–10–04) (‘‘Reg NMS Adopting Release’’). 

9The OCC publishes options and futures volume 

in a variety of formats, including daily and monthly 

volume by exchange, available here: https://

www.theocc.com/Market-Data/Market-DataReports/Volume-and-Open-Interest/MonthlyWeekly-Volume-Statistics. 

10Based on a compilation of OCC data for 

monthly volume of equity-based options and 

monthly volume of equity-based ETF options, see 

id., the Exchanges market share in equity-based 

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

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

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

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–NYSENAT–2024–28 and should be 

submitted on or before December 9, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–26747 Filed 11–15–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101586; File No. SR– 

NYSEAMER–2024–66] 

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 

November 12, 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 

November 1, 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. 

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 to increase the 

maximum combined credits and rebates 

available to Floor Brokers for qualifying 

Qualified Contingent Cross Trades 

(‘‘QCCs’’). The Exchange proposes to 

implement the rule change on 

November 1, 2024. 

The Exchange proposes to modify 

Section I.F. and Section III.E.1. to 

increase the maximum combined Floor 

Broker credits and rebates paid through 

the Manual Billable Rebate Program, 

respectively, for qualifying QCCs to 

$2,750,000 per month per Floor Broker 

firm, an increase from the current 

monthly amount of 2,500,000 (the 

‘‘Maximum Combined Rebate/Credit’’ or 

‘‘QCC Cap’’).4 The proposed increase is 

designed to encourage Floor Broker 

firms to continue to direct transactions 

to the Exchange, despite increasing 

industry volumes making it less difficult 

to attain the maximum rebate. By 

increasing the QCC Cap, Floor Brokers 

are eligible to achieve more QCC credits 

and rebates, thus making the Exchange 

a more attractive venue for QCC 

transactions.5

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,6 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,7 in particular, 

because it provides for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members, 

issuers and other persons using its 

facilities and does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. 

The proposed change [sic] to the Fee 

Schedule are reasonable, equitable, and 

not unfairly discriminatory. 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 Commission has repeatedly 

expressed its preference for competition 

over regulatory intervention in 

determining prices, products, and 

services in the securities markets. In 

Regulation NMS, 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.’’ 8

There are currently 17 [sic] registered 

options exchanges competing for order 

flow. Based on publicly-available 

information, and excluding index-based 

options, no single exchange has more 

than 16% of the market share of 

executed volume of multiply-listed 

equity and ETF options trades.9

Therefore, currently no exchange 

possesses significant pricing power in 

the execution of multiply-listed equity & 

ETF options order flow. More 

specifically, in September of 2024, the 

Exchange had 7.64% market share of 

executed volume of multiply-listed 

equity & ETF options trades.10 In such 


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Federal Register / Vol. 89, No. 222 / Monday, November 18, 2024 / Notices 90799 

options increased from 7.31% for the month of 

September 2023 to 7.64% for the month of 

September 2024. 

11See Reg NMS Adopting Release, supra note 8, 

at 37499. 

12See note 9, supra. 

13See note 10, supra. 

a low-concentrated and highly 

competitive market, no single options 

exchange possesses significant pricing 

power in the execution of option 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 remain competitive and to 

continue to attract QCC transactions to 

the Exchange. 

The Exchange believes that the 

proposed increase of the QCC Cap is 

reasonable, equitable, and not unfairly 

discriminatory because it is intended to 

encourage Floor Brokers to direct QCC 

transactions to the Exchange. The 

Exchange believes the proposed 

increase to the QCC Cap is reasonable 

given that increasing industry volumes 

make it less difficult to attain the QCC 

Cap. Floor Brokers that exceed the 

monthly QCC Cap may be incentivized 

to direct additional QCC volume (in that 

same month) away from the Exchange to 

another venue that offers more favorable 

pricing. 

The proposed change is intended to 

encourage the role performed by Floor 

Brokers in facilitating the execution of 

orders via open outcry, a function 

which the Exchange wishes to support 

for the benefit of all market participants. 

Floor Brokers have the option to execute 

QCC transactions on the Exchange to 

earn the various proposed credits and 

rebates or not. The credits and rebates 

for QCC transactions (and whether a 

Floor Broker exceeds the increased QCC 

Cap) are based on the amount and type 

of business a Floor Broker transacts on 

the Exchange and are available—and 

apply equally to all similarly situated 

Floor Brokers. As such, the proposed 

increase to the QCC Cap is an equitable 

allocation of its fees and credits that is 

not unfairly discriminatory. 

To the extent that the proposed 

changes attract more volume to the 

Exchange, this increased order flow 

would continue to make the Exchange a 

more competitive venue for order 

execution, which, in turn, promotes just 

and equitable principles of trade and 

removes impediments to and perfects 

the mechanism of a free and open 

market and a national market system. 

The Exchange notes that all market 

participants stand to benefit from any 

increase in volume by Floor Brokers, 

which could promote market depth, 

facilitate tighter spreads and enhance 

price discovery, to the extent the 

proposed change encourages Floor 

Brokers to utilize the Exchange as a 

primary trading venue, and may lead to 

a corresponding increase in order flow 

from other market participants. In 

addition, any increased liquidity on the 

Exchange would result in enhanced 

market quality for all participants. 

Finally, the Exchange believes that it 

is subject to significant competitive 

forces, as described below in the 

Exchange’s statement regarding the 

burden on competition. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act, the Exchange does not believe 

that the proposed rule change would 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

Instead, as discussed above, the 

Exchange believes that the proposed 

changes would encourage the 

submission of additional liquidity to a 

public exchange, thereby promoting 

market depth, price discovery and 

transparency and enhancing order 

execution opportunities for all market 

participants. As a result, the Exchange 

believes that the proposed change 

furthers the Commission’s goal in 

adopting Regulation NMS of fostering 

integrated competition among orders, 

which promotes ‘‘more efficient pricing 

of individual stocks for all types of 

orders, large and small.’’ 11

Intramarket Competition. The 

proposed increase of the QCC Cap 

would apply equally to all similarlysituated Floor Brokers and is design 

[sic] to continue to incent Floor Brokers 

to execute QCC transactions on the 

Exchange. To the extent that the 

proposed change achieves its purpose in 

attracting more Floor Broker volume to 

the Exchange, this increased order flow 

would continue to make the Exchange a 

more competitive venue for, among 

other things, order execution. Thus, the 

Exchange believes the proposed rule 

changes would improve market quality 

for all market participants on the 

Exchange and, therefore, attract more 

order flow to the Exchange, thereby 

improving market-wide quality and 

price discovery. To the extent that there 

is an additional competitive burden on 

non-Floor Brokers, the Exchange 

believes that any such burden would be 

appropriate because Floor Brokers serve 

an important function in facilitating the 

execution of orders and price discovery 

for all market participants. 

Intermarket Competition. The 

Exchange operates in a highly 

competitive market in which market 

participants can readily favor one of the 

17 competing option exchanges 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 and to attract order flow to 

the Exchange. Based on publiclyavailable information, and excluding 

index-based options, no single exchange 

has more than 16% of the market share 

of executed volume of multiply-listed 

equity and ETF options trades.12

Therefore, no exchange possesses 

significant pricing power in the 

execution of multiply-listed equity and 

ETF options order flow. More 

specifically, in September 2024 the 

Exchange had less than 8% market 

share of executed volume of multiplylisted equity and ETF options trades.13

The Exchange believes that the 

proposed change reflects this 

competitive environment because it 

modifies the Exchange’s fees and credits 

in a manner designed to continue to 

incent Floor Brokers to direct trading 

interest (particularly QCC transactions) 

to the Exchange, to provide liquidity 

and to attract order flow. To the extent 

that Floor Brokers are encouraged to try 

to meet the QCC Cap and/or 

incentivized to utilize the Exchange as 

a primary trading venue for all 

transactions, all of the Exchange’s 

market participants should benefit from 

the improved market quality and 

increased opportunities for price 

improvement. The Exchange notes that 

it operates in a highly competitive 

market in which market participants can 

readily favor competing venues. In such 

an environment, the Exchange must 

continually review, and consider 

adjusting, its fees and credits to remain 

competitive with other exchanges. For 

the reasons described above, the 

Exchange believes that the proposed 

rule change reflects this competitive 

environment. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 


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90800 Federal Register / Vol. 89, No. 222 / Monday, November 18, 2024 / Notices 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(2). 

16 15 U.S.C. 78s(b)(2)(B). 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed 

change on November 1, 2024 (SR–EDGX–2024– 

074). On November 7, 2024, the Exchange withdrew 

that filing and submitted this filing. 

4See Securities Exchange Act Release No. 100802 

(August 28, 2024), 89 FR 68952 (August 22, 2024) 

(SR–CboeEDGX–2024–053). 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 14 of the Act and 

subparagraph (f)(2) of Rule 19b–4 15

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 16 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

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– 

NYSEAMER–2024–66 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–NYSEAMER–2024–66. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

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

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

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

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

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

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–NYSEAMER–2024–66 and should 

be submitted on or before December 9, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–26752 Filed 11–15–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101583; File No. SR– 

CboeEDGX–2024–075] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Adopt Fees 

for Its New Offering of Market Data 

Reports 

November 12, 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 November 

7, 2024, Cboe EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) 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 

Cboe EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) proposes to 

adopt fees for its new offering of market 

data reports. The text of the proposed 

rule change is provided in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

options/regulation/rule_filings/edgx/), 

at the Exchange’s Office of the 

Secretary, 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 its 

fee schedule to adopt fees for Cboe 

Timestamping Service reports, effective 

November 1, 2024.3 The Exchange 

recently adopted a new data product 

known as the Cboe Timestamping 

Service.4 The Cboe Timestamping 

Service provides timestamp information 

for orders and cancels for market 

participants. More specifically, the Cboe 

Timestamping Service reports provide 

various timestamps relating to the 

message lifecycle throughout the 

exchange system. The first report—the 

Missed Liquidity Report—covers order 

messages of the Member only and the 

second report—Cancels Report—covers 

cancel messages of the Member only. 

The reports are optional products that 

are available to all Members and 

Members may opt to choose both 

reports, one report, or neither report. 


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