FR 2025-00307

In this notice from the Federal Register, NYSE American LLC has proposed changes to its Options Fee Schedule. These changes pertain specifically to volume thresholds and fees associated with the Market Maker Sliding Scale. Filed on December 20, 2024, the proposed amendments are set to take effect from January 2, 2025. The Securities and Exchange Commission (SEC) is actively seeking public commentary on this proposal until January 31, 2025, encouraging stakeholders to participate in shaping the outcome by sharing their perspectives.

Summary of the Document

The primary goal of the document is to inform stakeholders about proposed modifications to the fee structure on the NYSE American exchange. While it clearly indicates that the adjustments affect volume thresholds and fees under the Market Maker Sliding Scale, the document notably lacks specific details about how these elements will be adjusted. Interested parties are encouraged to submit their comments electronically or via mail, with clear reference to the file number SR-NYSEAMER-2024-82 for their responses to be properly categorized.

Significant Issues and Concerns

A few critical issues emerge from the document. Firstly, the absence of detailed information regarding the exact nature of the fee and threshold alterations makes it challenging for stakeholders and the public to assess the potential impacts comprehensively. This omission may lead to uncertainty and apprehension among those affected by the changes.

Secondly, while the document invites feedback, it does not provide explicit instructions or focus areas for comment submissions. This lack of guidance could result in receiving feedback that is too broad or unfocused, which may not effectively aid the regulatory decision-making process.

Additionally, the document's reliance on legal jargon and references to specific legal provisions and sections might hinder understanding and engagement, particularly for individuals who do not have a legal background. This could limit the inclusion of diverse perspectives from a broad spectrum of stakeholders, potentially affecting the comprehensiveness of the feedback collected.

Impact on the Public

Broadly speaking, changes to the NYSE American Options Fee Schedule can have multiple effects on market participants. For everyday investors, altered fees may influence trading costs, indirectly impacting investment strategies and decisions. The lack of specificity in the proposal details means that stakeholders cannot fully anticipate whether the changes will lead to increased or decreased costs.

Impact on Specific Stakeholders

For specific stakeholders, such as market makers, the amendments could have direct operational and financial implications. Adjustments to the sliding scale fees may affect market makers' profitability and market participation decisions. If the changes increase costs, some market participants may face reduced margins, while others may reevaluate their market-making strategies.

On the positive side, if the fee changes are perceived as fair and beneficial, they could enhance market liquidity and efficiency by encouraging more active trading and tighter spreads. However, without detailed information, stakeholders are left to speculate on potential outcomes, highlighting the importance of seeking and providing comprehensive feedback during the commentary period.

In conclusion, while the document serves its purpose of notifying stakeholders of impending changes, the lack of detailed information or guidance raises concerns. Clarifying the specific aspects of the fee amendments and providing structured guidance for public feedback could facilitate a more informed and constructive response from the investment community.