The Securities and Exchange Commission has received a proposal from Nasdaq BX to change how they handle the Options Regulatory Fee (ORF) starting on January 1, 2025. The change will adjust how fees are collected from different kinds of option transactions to better match the costs of regulation. Specifically, the proposal distinguishes between local and away trades and sets different fees for these categories. Nasdaq BX aims to ensure that these fees do not exceed 88% of the actual regulatory costs, and plans to revert to the previous fee system by July 1, 2025, unless further changes are made.
Simple Explanation
Nasdaq BX wants to change some of the fees they charge when people trade options, to make sure the costs they collect match what they spend on keeping everything fair and regulated. They want to test this new fee setup for a while and might go back to the old way if it doesn't work out by the middle of 2025.