Nasdaq PHLX LLC proposed changes to lower the Options Regulatory Fee (ORF) starting in 2025. From November 1, 2024, to December 31, 2024, they plan to reduce the ORF fee from $0.0034 to $0.0022 per contract. Beginning January 1, 2025, the methodology for assessing ORF will change to include different rates for options traded on different exchanges, with new rates applied to various transactions except those by market makers. The proposal aims to ensure that the fees collected cover regulatory costs without exceeding them.
Simple Explanation
Nasdaq PHLX LLC wants to change the fee they charge when people trade options, making it cheaper and different depending on where the trade happens, starting in 2025. They also want to make sure the money they get from these fees only covers their costs, and they don't want to charge market makers the same way they charge others.