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The Securities and Exchange Commission has announced a rule change proposed by The Nasdaq Stock Market LLC. This change involves modifying the Options Regulatory Fee (ORF) by decreasing it from $0.0016 to $0.0014 per contract side, starting from November 1, 2024, until December 31, 2024, to ensure that the revenue from this fee does not exceed the costs associated with regulatory responsibilities. From January 1, 2025, Nasdaq plans to introduce a new method of assessing ORF, which will exclude proprietary product transactions and focus on clearing transactions across various participant types, while adopting different rates for trades executed on Nasdaq and non-Nasdaq exchanges. This new approach aims to cover a material portion of regulatory costs without generating excessive revenue and is set to conclude on July 1, 2025, when the original rates and structure will be reinstated unless further reviewed.

In a notice published by the Securities and Exchange Commission, the MIAX PEARL, LLC proposed a change to its rules to allow the listing and trading of options on the iShares Ethereum Trust. This change is intended to give investors a more cost-effective way to invest in Ether, a type of cryptocurrency, without directly owning it. The rule change aligns with similar approvals from other exchanges and aims to enhance the tools available to investors for managing their investment portfolios. The proposal has been filed to encourage comments from the public and does not impose significant burdens on competition or investor protection.

On December 20, 2024, Nasdaq ISE, LLC submitted a proposal to the Securities and Exchange Commission to increase the position and exercise limits for options on the iShares Bitcoin Trust ETF (IBIT) from 25,000 to 250,000 contracts. This change aims to reflect the high trading volume and demand for IBIT options, allowing more flexibility for investors and market makers. The proposal suggests that increasing the limits would improve market liquidity and efficiency while ensuring effective regulation. The Securities and Exchange Commission is reviewing this proposal and inviting public comments before deciding whether to approve or disapprove the proposed changes.

The Securities and Exchange Commission published a notice about a proposed rule change by the Cboe EDGA Exchange to increase the monthly fee for 10 Gb physical ports from $7,500 to $8,500. The exchange believes the increase is reasonable due to inflation since 2018, investments made to enhance technology, and because the new fee is still competitive compared to other exchanges. The proposed rule change is aimed at maintaining and improving the exchange's services and infrastructure. Feedback from the public is invited, and all comments will be reviewed by the Commission.

The Consumer Financial Protection Bureau (CFPB) has updated regulations for overdraft credit offered by very large financial institutions, such as banks and credit unions with more than $10 billion in assets. This new rule ensures that these institutions adhere to consumer protection laws that apply to other credit products, unless the overdraft fee is only meant to cover the costs incurred. By doing this, consumers will have better information to compare different credit options, making it easier for them to make informed decisions. The rule takes effect on October 1, 2025, and does not yet apply to smaller institutions, as the impact on the market will be assessed first.

Cboe BYX Exchange, Inc. has proposed a new rule to introduce a monthly fee for members who use multiple Market Participant Identifiers (MPIDs). The fee of $150 per MPID, with the first MPID being free, is intended to encourage efficient use of MPIDs. The exchange believes this fee is reasonable and consistent with similar charges by other exchanges like Nasdaq, which imposes a higher MPID fee. The proposal is now open for public comments, and interested individuals can share their feedback with the Securities and Exchange Commission.

The Securities and Exchange Commission (SEC) is reviewing a rule change proposed by NYSE American, LLC. The proposal suggests temporarily waiving the Options Regulatory Fee (ORF) for December 2024, aiming to prevent fee collections from exceeding regulatory costs. The fee would resume on January 1, 2025, at the same rate. The SEC temporarily suspended this proposal to allow more time for public feedback and further evaluation of its consistency with relevant laws and fairness in terms of fee allocation.

The Nasdaq Stock Market LLC has proposed a rule change to adjust its fees based on inflation. The fees have been unchanged for a long time and will now be adjusted through a one-time increase spread over three years: 45% in 2025, 30% in 2026, and 25% in 2027. The adjustments aim to restore fees to their intended real value and support continued investment in technology. These proposed changes apply to various Nasdaq products and are intended to ensure fair value and support the quality of Nasdaq's services.

The Federal Housing Finance Agency (FHFA) has announced an adjustment to the cap on average total assets to determine if a Federal Home Loan Bank member qualifies as a "community financial institution" (CFI). This cap has been set at $1.5 billion, reflecting a 2.7% increase based on changes in the Consumer Price Index for all urban consumers (CPI-U) from November 2023 to November 2024. This adjustment, effective from January 1, 2025, allows CFI status to be determined using unadjusted CPI-U data, as it is less prone to revisions than adjusted data.

The Cboe BZX Exchange, Inc. has proposed a rule change to the Securities and Exchange Commission (SEC) to amend its fee structure for listing certain financial products called Outcome Strategy Exchange-Traded Products (ETPs). This change involves expanding the annual listing fee cap, now $16,000 per year, to include ETPs that base their returns on the performance of more than one reference index. The proposal aims to make listing costs more affordable and to encourage more issuers to list or transfer their ETPs to the Exchange, thereby fostering competition. The SEC is inviting public comments on this proposal before it makes a final decision.