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, 18974-18976 [2024-05486]

Download as PDF 18974 Federal Register / Vol. 89, No. 52 / Friday, March 15, 2024 / Notices Estimated Total Annual Burden Hours: 360 hours. IV. Request for Comments Comments are invited on: (1) Whether the proposed collection of information is necessary for the proper performance of the functions of NASA, including whether the information collected has practical utility; (2) the accuracy of NASA’s estimate of the burden (including hours and cost) of the proposed collection of information; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information on respondents, including automated collection techniques or the use of other forms of information technology. Comments submitted in response to this notice will be summarized and included in the request for OMB approval of this information collection. They will also become a matter of public record. William Edwards-Bodmer, NASA PRA Clearance Officer. [FR Doc. 2024–05569 Filed 3–14–24; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–99709; File No. SR– NYSEAMER–2024–15] 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 khammond on DSKJM1Z7X2PROD with NOTICES March 11, 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 February 29, 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. U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. VerDate Sep<11>2014 18:17 Mar 14, 2024 Jkt 262001 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 BILLING CODE 7510–13–P 1 15 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’’) regarding the Professional Step-Up Incentive program. The Exchange proposes to implement the fee changes effective March 1, 2024. 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. 1. Purpose The purpose of this filing [sic] to modify the Fee Schedule to replace the Professional Step-Up Incentive program with the Professional Volume Incentive program. Currently, the Exchange offers an incentive program known as the Professional Step-Up Incentive (the ‘‘Step-Up Program’’), designed to encourage ATP Holders to increase their electronic volume in the ‘‘Professional’’ range.4 The Step-Up Program offers discounted rates on monthly Professional volume and credits on Customer electronic volume at the same rate as ATP Holders that qualify for Tier 1 of the American Customer Engagement (‘‘ACE’’) Program 5 to ATP Holders that increase their Professional volume by specified percentages of TCADV over their August 2019 volume, or in the case of new ATP Holders, above a base level of 10,000 contracts ADV. Volume from strategy executions, 4 See Fee Schedule, Section I.H. (Professional Step-Up Incentive). For purposes of this filing, ‘‘Professional’’ electronic volume includes Professional Customer, Broker Dealer, Non-NYSE American Options Market Maker, and Firm. 5 See Fee Schedule, Section I.E. (American Customer Engagement (‘‘ACE’’) Program). PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 CUBE auctions, and QCC transactions are not included in the calculation of base volume amounts or volume to qualify for the Step-Up Program, nor is interest that takes liquidity from posted Customer interest. The Exchange now proposes to rename the Step-Up Program as the Professional Volume Incentive program.6 Under the Professional Volume Incentive program, ATP Holders would qualify for the same discounted rates and credits as in the Step-Up Program by achieving qualifying volume of specified percentages of TCADV (‘‘Qualifying Volume) rather than increased volume over a certain base level. Volume from strategy executions, CUBE auctions, and QCC transactions, as well as interest that takes liquidity from posted Customer interest, will continue to be excluded from an ATP Holder’s Qualifying Volume. As proposed, Tier A of the Professional Volume Incentive program would have the same Qualifying Volume requirement as the Step-Up Program (0.20% of TCADV) and would provide qualifying ATP Holders with the same per contract Penny rate of $0.35 and the same per contract nonPenny rate of $0.65. The Exchange proposes that the Qualifying Volume requirement for Tier B would be 0.30% of TCADV under the Professional Volume Incentive program (rather than an increase of 0.25% of TCADV under the Step-Up Program), and that the per contract Penny and non-Penny rates ($0.20 and $0.55, respectively) would remain the same. ATP Holders that qualify for either tier of the proposed Professional Volume Incentive program will also continue to receive benefits offered in Tier 1 of the ACE program. Currently, under the Step-Up Program, ATP Holders would also qualify for an additional discount on the Tier B rates by increasing their programqualifying volume and executing a qualifying amount of posted Professional volume. The Exchange proposes to eliminate this additional discount and instead introduce additional discounts available to ATP Holders that achieve higher levels of Qualifying Volume. ATP Holders that achieve Qualifying Volume as set forth in the table below would earn the corresponding additional discount on the Tier B Penny and non-Penny rates (applicable from the first contract) as set forth in the table below: 6 Consistent with this change, the Exchange also proposes to amend the Fee Schedule’s Table of Contents to update the title of Section I.H. to ‘‘Professional Volume Incentive.’’ E:\FR\FM\15MRN1.SGM 15MRN1 Federal Register / Vol. 89, No. 52 / Friday, March 15, 2024 / Notices incentivize ATP Holders to achieve increasingly higher levels of Qualifying Volume to earn the corresponding Qualifying volume as % of higher discounts. In addition, with TCADV respect to the additional discounts that would be available under the Professional Volume Incentive program, 0.40% .................................... $0.01 the Exchange believes that the 0.50% .................................... 0.02 Qualifying Volume requirements and 0.60% .................................... 0.03 discount amounts are reasonably designed to encourage ATP Holders to The proposed change is intended to direct increased Professional and continue to encourage ATP Holders to Customer electronic volume to the increase both Professional and Customer Exchange, thereby providing additional electronic order flow to the Exchange by liquidity, attracting additional order continuing to offer the discounted rates flow from other market participants, and and credits that were available in the improving market quality for all market Step-Up Program through the new participants. To the extent the proposed Professional Volume Incentive program, change achieves its purpose in attracting as well as additional discounts for greater volume and liquidity to the qualifying ATP Holders. The Exchange Exchange, the Exchange believes that all believes the proposed change to the market participants stand to benefit qualifications for the Professional from increased electronic transaction Volume Incentive Program, which are volume, whether Professional or based on ATP Holders’ Qualifying Customer, as greater volume and Volume rather than increased volume liquidity would improve the Exchange’s over a certain base volume, is overall competitiveness and strengthen reasonable and that the volume its market quality for all market requirements are attainable by ATP participants. The Exchange also believes Holders. that the proposed change is equitable and not unfairly discriminatory because 2. Statutory Basis it would apply to all similarly-situated The Exchange believes that the market participants on an equal and proposed rule change is consistent with non-discriminatory basis. The Section 6(b) of the Act,7 in general, and qualifications for and benefits offered in furthers the objectives of Sections the Professional Volume Incentive 6(b)(4) and (5) of the Act,8 in particular, program are based on the amount and because it provides for the equitable type of business transacted by ATP allocation of reasonable dues, fees, and Holders, and all ATP Holders are other charges among its members, eligible to qualify for the Professional issuers and other persons using its Volume Incentive program by achieving facilities and does not unfairly the same Qualifying Volume as a discriminate between customers, percentage of TCADV. issuers, brokers or dealers. Finally, the Exchange believes that it The Exchange believes that the is subject to significant competitive proposed Professional Volume Incentive forces, as described below in the program is reasonable, equitable, and Exchange’s statement regarding the not unfairly discriminatory because it is burden on competition. designed to continue to incent ATP For the foregoing reasons, the Holders to increase the amount of Exchange believes that the proposal is Professional and Customer electronic consistent with the Act. order flow directed to the Exchange. B. Self-Regulatory Organization’s The Professional Volume Incentive Statement on Burden on Competition program, as proposed, would continue In accordance with Section 6(b)(8) of to offer discounted rates and credits as the Act, the Exchange does not believe under the Step-Up Program, as well as additional discounts for qualifying ATP that the proposed rule change would impose any burden on competition that Holders, based on Qualifying Volume is not necessary or appropriate in rather than increased volume over a furtherance of the purposes of the Act. certain base volume. As noted above, Instead, as discussed above, the the Exchange believes the proposed Exchange believes that the proposed volume requirements for the Professional Volume Incentive program, changes would encourage the submission of additional liquidity to a including for the additional discounts public exchange, thereby promoting on Tier B rates, are attainable by ATP market depth, price discovery and Holders and are reasonably designed to transparency and enhancing order 7 15 U.S.C. 78f(b). execution opportunities for all market 8 15 U.S.C. 78f(b)(4) and (5). participants. As a result, the Exchange khammond on DSKJM1Z7X2PROD with NOTICES Additional discount on tier B per contract penny and non-penny rate VerDate Sep<11>2014 18:17 Mar 14, 2024 Jkt 262001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 18975 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.’’ 9 Intramarket Competition. The proposed change to replace the Step-Up Program with the Professional Volume Incentive program is designed to continue to attract additional order flow to the Exchange. Greater liquidity benefits all market participants on the Exchange and increased Professional and Customer electronic volume could increase opportunities for execution of other trading interest. Because the Professional Volume Incentive program would be available to all similarlysituated market participants, the Exchange does not believes that the proposed change would impose a disparate burden on competition among market participants on the Exchange. 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.10 Therefore, no exchange possesses significant pricing power in the execution of multiply-listed equity & ETF options order flow. More specifically, in January of 2024, the Exchange had less than 8% market share of executed volume of multiplylisted equity & ETF options trades.11 The Exchange believes that the proposed rule change reflects this competitive environment because it modifies the Exchange’s fees in a manner designed to continue to encourage ATP Holders to direct trading 9 See Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) (S7–10–04). 10 The 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. 11 Based on a compilation of OCC data for monthly volume of equity-based options and monthly volume of equity-based ETF options, see id., the Exchange’s market share in equity-based options decreased from 7.96% for the month of January 2023 to 7.82% for the month of January 2024. E:\FR\FM\15MRN1.SGM 15MRN1 18976 Federal Register / Vol. 89, No. 52 / Friday, March 15, 2024 / Notices interest to the Exchange, to provide liquidity and to attract order flow. To the extent that this purpose is achieved, all the Exchange’s market participants should benefit from the improved market quality and increased trading opportunities. The Exchange believes that the proposed change could promote competition between the Exchange and other execution venues by encouraging additional orders to be sent to the Exchange for execution. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) 12 of the Act and subparagraph (f)(2) of Rule 19b–4 13 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) 14 of the Act to determine whether the proposed rule change should be approved or disapproved. khammond on DSKJM1Z7X2PROD with NOTICES IV. Solicitation of Comments 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–2024–15. 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–2024–15 and should be submitted on or before April 5, 2024. 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: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Sherry R. Haywood, Assistant Secretary. Electronic Comments BILLING CODE 8011–01–P [FR Doc. 2024–05486 Filed 3–14–24; 8:45 am] • 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–2024–15 on the subject line. U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 14 15 U.S.C. 78s(b)(2)(B). SECURITIES AND EXCHANGE COMMISSION [Release No. 34–99708; File No. SR– NYSEARCA–2024–24] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE Arca Options Fee Schedule March 11, 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 February 29, 2024, NYSE Arca, Inc. (‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to modify the NYSE Arca Options Fee Schedule (‘‘Fee Schedule’’) regarding certain fees and credits applicable to Lead Market Makers. The Exchange proposes to implement the fee change effective March 1, 2024. 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. 12 15 1 15 13 17 2 15 VerDate Sep<11>2014 18:17 Mar 14, 2024 15 17 Jkt 262001 PO 00000 CFR 200.30–3(a)(12). Frm 00089 Fmt 4703 Sfmt 4703 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. E:\FR\FM\15MRN1.SGM 15MRN1

Agencies

[Federal Register Volume 89, Number 52 (Friday, March 15, 2024)]
[Notices]
[Pages 18974-18976]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05486]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99709; File No. SR-NYSEAMER-2024-15]


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

March 11, 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 February 29, 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to modify the NYSE American Options Fee 
Schedule (``Fee Schedule'') regarding the Professional Step-Up 
Incentive program. The Exchange proposes to implement the fee changes 
effective March 1, 2024. 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 modify the Fee Schedule to 
replace the Professional Step-Up Incentive program with the 
Professional Volume Incentive program.
    Currently, the Exchange offers an incentive program known as the 
Professional Step-Up Incentive (the ``Step-Up Program''), designed to 
encourage ATP Holders to increase their electronic volume in the 
``Professional'' range.\4\ The Step-Up Program offers discounted rates 
on monthly Professional volume and credits on Customer electronic 
volume at the same rate as ATP Holders that qualify for Tier 1 of the 
American Customer Engagement (``ACE'') Program \5\ to ATP Holders that 
increase their Professional volume by specified percentages of TCADV 
over their August 2019 volume, or in the case of new ATP Holders, above 
a base level of 10,000 contracts ADV. Volume from strategy executions, 
CUBE auctions, and QCC transactions are not included in the calculation 
of base volume amounts or volume to qualify for the Step-Up Program, 
nor is interest that takes liquidity from posted Customer interest.
---------------------------------------------------------------------------

    \4\ See Fee Schedule, Section I.H. (Professional Step-Up 
Incentive). For purposes of this filing, ``Professional'' electronic 
volume includes Professional Customer, Broker Dealer, Non-NYSE 
American Options Market Maker, and Firm.
    \5\ See Fee Schedule, Section I.E. (American Customer Engagement 
(``ACE'') Program).
---------------------------------------------------------------------------

    The Exchange now proposes to rename the Step-Up Program as the 
Professional Volume Incentive program.\6\ Under the Professional Volume 
Incentive program, ATP Holders would qualify for the same discounted 
rates and credits as in the Step-Up Program by achieving qualifying 
volume of specified percentages of TCADV (``Qualifying Volume) rather 
than increased volume over a certain base level. Volume from strategy 
executions, CUBE auctions, and QCC transactions, as well as interest 
that takes liquidity from posted Customer interest, will continue to be 
excluded from an ATP Holder's Qualifying Volume.
---------------------------------------------------------------------------

    \6\ Consistent with this change, the Exchange also proposes to 
amend the Fee Schedule's Table of Contents to update the title of 
Section I.H. to ``Professional Volume Incentive.''
---------------------------------------------------------------------------

    As proposed, Tier A of the Professional Volume Incentive program 
would have the same Qualifying Volume requirement as the Step-Up 
Program (0.20% of TCADV) and would provide qualifying ATP Holders with 
the same per contract Penny rate of $0.35 and the same per contract 
non-Penny rate of $0.65. The Exchange proposes that the Qualifying 
Volume requirement for Tier B would be 0.30% of TCADV under the 
Professional Volume Incentive program (rather than an increase of 0.25% 
of TCADV under the Step-Up Program), and that the per contract Penny 
and non-Penny rates ($0.20 and $0.55, respectively) would remain the 
same. ATP Holders that qualify for either tier of the proposed 
Professional Volume Incentive program will also continue to receive 
benefits offered in Tier 1 of the ACE program.
    Currently, under the Step-Up Program, ATP Holders would also 
qualify for an additional discount on the Tier B rates by increasing 
their program-qualifying volume and executing a qualifying amount of 
posted Professional volume. The Exchange proposes to eliminate this 
additional discount and instead introduce additional discounts 
available to ATP Holders that achieve higher levels of Qualifying 
Volume. ATP Holders that achieve Qualifying Volume as set forth in the 
table below would earn the corresponding additional discount on the 
Tier B Penny and non-Penny rates (applicable from the first contract) 
as set forth in the table below:

[[Page 18975]]



------------------------------------------------------------------------
                                                            Additional
                                                            discount on
                                                            tier  B per
             Qualifying volume as % of TCADV                 contract
                                                          penny and non-
                                                            penny rate
------------------------------------------------------------------------
0.40%...................................................           $0.01
0.50%...................................................            0.02
0.60%...................................................            0.03
------------------------------------------------------------------------

    The proposed change is intended to continue to encourage ATP 
Holders to increase both Professional and Customer electronic order 
flow to the Exchange by continuing to offer the discounted rates and 
credits that were available in the Step-Up Program through the new 
Professional Volume Incentive program, as well as additional discounts 
for qualifying ATP Holders. The Exchange believes the proposed change 
to the qualifications for the Professional Volume Incentive Program, 
which are based on ATP Holders' Qualifying Volume rather than increased 
volume over a certain base volume, is reasonable and that the volume 
requirements are attainable by ATP Holders.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\7\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\8\ 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed Professional Volume 
Incentive program is reasonable, equitable, and not unfairly 
discriminatory because it is designed to continue to incent ATP Holders 
to increase the amount of Professional and Customer electronic order 
flow directed to the Exchange. The Professional Volume Incentive 
program, as proposed, would continue to offer discounted rates and 
credits as under the Step-Up Program, as well as additional discounts 
for qualifying ATP Holders, based on Qualifying Volume rather than 
increased volume over a certain base volume. As noted above, the 
Exchange believes the proposed volume requirements for the Professional 
Volume Incentive program, including for the additional discounts on 
Tier B rates, are attainable by ATP Holders and are reasonably designed 
to incentivize ATP Holders to achieve increasingly higher levels of 
Qualifying Volume to earn the corresponding higher discounts. In 
addition, with respect to the additional discounts that would be 
available under the Professional Volume Incentive program, the Exchange 
believes that the Qualifying Volume requirements and discount amounts 
are reasonably designed to encourage ATP Holders to direct increased 
Professional and Customer electronic volume to the Exchange, thereby 
providing additional liquidity, attracting additional order flow from 
other market participants, and improving market quality for all market 
participants. To the extent the proposed change achieves its purpose in 
attracting greater volume and liquidity to the Exchange, the Exchange 
believes that all market participants stand to benefit from increased 
electronic transaction volume, whether Professional or Customer, as 
greater volume and liquidity would improve the Exchange's overall 
competitiveness and strengthen its market quality for all market 
participants. The Exchange also believes that the proposed change is 
equitable and not unfairly discriminatory because it would apply to all 
similarly-situated market participants on an equal and non-
discriminatory basis. The qualifications for and benefits offered in 
the Professional Volume Incentive program are based on the amount and 
type of business transacted by ATP Holders, and all ATP Holders are 
eligible to qualify for the Professional Volume Incentive program by 
achieving the same Qualifying Volume as a percentage of TCADV.
    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.
    For the foregoing reasons, the Exchange believes that the proposal 
is consistent with the Act.

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.'' \9\
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496, 37499 (June 29, 2005) (S7-10-04).
---------------------------------------------------------------------------

    Intramarket Competition. The proposed change to replace the Step-Up 
Program with the Professional Volume Incentive program is designed to 
continue to attract additional order flow to the Exchange. Greater 
liquidity benefits all market participants on the Exchange and 
increased Professional and Customer electronic volume could increase 
opportunities for execution of other trading interest. Because the 
Professional Volume Incentive program would be available to all 
similarly-situated market participants, the Exchange does not believes 
that the proposed change would impose a disparate burden on competition 
among market participants on the Exchange.
    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 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.\10\ Therefore, no 
exchange possesses significant pricing power in the execution of 
multiply-listed equity & ETF options order flow. More specifically, in 
January of 2024, the Exchange had less than 8% market share of executed 
volume of multiply-listed equity & ETF options trades.\11\ The Exchange 
believes that the proposed rule change reflects this competitive 
environment because it modifies the Exchange's fees in a manner 
designed to continue to encourage ATP Holders to direct trading

[[Page 18976]]

interest to the Exchange, to provide liquidity and to attract order 
flow. To the extent that this purpose is achieved, all the Exchange's 
market participants should benefit from the improved market quality and 
increased trading opportunities. The Exchange believes that the 
proposed change could promote competition between the Exchange and 
other execution venues by encouraging additional orders to be sent to 
the Exchange for execution.
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    \10\ The 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-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics.
    \11\ Based on a compilation of OCC data for monthly volume of 
equity-based options and monthly volume of equity-based ETF options, 
see id., the Exchange's market share in equity-based options 
decreased from 7.96% for the month of January 2023 to 7.82% for the 
month of January 2024.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \12\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \13\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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) \14\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \14\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-NYSEAMER-2024-15 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-2024-15. 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-2024-15 and should 
be submitted on or before April 5, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-05486 Filed 3-14-24; 8:45 am]
BILLING CODE 8011-01-P
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