The NYSE Arca, Inc. has proposed a temporary waiver of the Options Regulatory Fee (ORF) for all transactions cleared in the Customer range at the Options Clearing Corporation from December 1, 2024, to December 31, 2024. This waiver is intended to ensure that the ORF collections do not exceed the exchange's regulatory costs, as high trading volumes have increased ORF collections beyond projections, despite a rate reduction. The ORF is set to resume at its current rate on January 1, 2025, and the exchange will monitor costs to decide if further adjustments are necessary. Additionally, the exchange aims to remove outdated fee schedule language for clarity.
Simple Explanation
NYSE Arca, Inc. is stopping a special fee called the Options Regulatory Fee (ORF) from being charged on certain trades for one month in December 2024 because they've collected more money than needed to cover their costs. They will start charging the fee again in January 2025 but are watching to make sure they don't collect too much money.