In a recent filing with the Securities and Exchange Commission, NYSE Arca, Inc. proposed changes to its fee schedule to replace the current incentives available for Market Makers. These changes involve eliminating the existing "Additional Credit" and introducing two new tiers—Super Select Tier and Super Select Tier II—to attract increased trading volume. The modified structure aims to make achieving the tiers more attainable for traders by lowering volume requirements in specific high-volume issues while slightly raising cross-asset activity requirements. By encouraging more trading on NYSE Arca, the proposal hopes to enhance liquidity and execution opportunities for all market participants.
Simple Explanation
Imagine a store is changing the way it rewards its best customers by giving them easier tasks to earn special discounts, hoping more people will shop there and make everyone get better deals overall.