The NYSE American LLC has proposed a rule change that was filed with the Securities and Exchange Commission (SEC) on February 1, 2021, to amend its Options Fee Schedule. This amendment introduces a new credit system for Customer Electronic executions, aiming to incentivize ATP Holders by offering a $0.10 per contract credit if certain trading volume thresholds are met. The goal is to attract more trading activity, thereby enhancing market depth, price discovery, and competition while benefiting all market participants. The SEC is inviting public comments on this proposed rule change, which is effective upon filing but can be temporarily suspended by the Commission within 60 days if deemed necessary.
Simple Explanation
The NYSE American LLC wants to change its rules so that people who trade lots of options (like contracts for buying or selling stocks) can get a little bit of money back. This is to make more people trade with them and make the market better for everyone who buys and sells things.