NYSE Arca proposes broker credit cap waiver 26th Mar

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March 26, 2026. Pursuant to Section 19(b)(1) (1) of the Securities Exchange Act of 1934 (“Act”), (2) and Rule 19b-4 thereunder, (3) notice is hereby given that on March 17, 2026, NYSE Arca, Inc. (“NYSE Arca” or the “Exchange”) filed with the Securities and
Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II below, which Items have been
prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed
rule change from interested persons.

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The Exchange proposes to modify the NYSE Arca Options Fee Schedule (the “Fee Schedule”) to waive the maximum combined Submitting
Broker credits paid for QCC trades and Floor Broker rebates paid through the Manual Billable Rebate Program for the month
of March 2026. The proposed rule change is available on the Exchange's website at www.nyse.com and at the principal office of the Exchange.

II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis
for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements
may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B,
and C below, of the most significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change

1. Purpose

The purpose of this filing is to amend the Fee Schedule to waive the maximum combined Submitting Broker credits paid for QCC
trades and Floor Broker rebates paid through the Manual Billable Rebate Program for the month of March 2026.

The Exchange imposes a limit on the maximum combined Submitting Broker credits paid for QCC trades and Floor Broker rebates
paid through the Manual Billable Rebate Program per month per firm (the “Cap”). (4) Because of elevated volumes on the Exchange, the Exchange proposes to waive the Cap for the month of March 2026 and to use
the period during which the Cap is waived to evaluate an adjustment to the amount of the Cap. The proposed waiver is being
adopted in anticipation of firms reaching the Cap before month's end and potentially redirecting their order flow away from
the Exchange. In the absence of the proposed waiver, firms may choose to redirect such order flow to a competing market. Accordingly,
the purpose of the proposal is to encourage Submitting Brokers and Floor Brokers to continue to direct order flow to the Exchange,
despite increasing industry volumes making it less difficult to reach the Cap.

Although the Exchange cannot predict with certainty how many firms would be impacted by this change, the Exchange believes
that the proposed change would incent firms to continue to direct their order flow to the Exchange, thus increasing liquidity
to the benefit of all market participants.

2. Statutory Basis

The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act, (5) in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act, (6) in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members,
issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers.

The proposed change is reasonable, equitable, and not unfairly discriminatory. As a threshold matter, the Exchange is subject
to significant competitive forces in the market for options securities transaction services that constrain its pricing determinations
in that market. The Commission has repeatedly expressed its preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation NMS, the Commission highlighted the importance of
market forces in determining prices and SRO revenues and, also, recognized that current regulation of the market system “has
been remarkably successful in promoting market competition in its broader forms that are most important to investors and listed
companies.” (7)

There are currently 18 registered options exchanges competing for order flow. Based on publicly-available information, and
excluding index-based options, no single exchange has more than 16% of the market share of executed volume of multiply-listed
equity and ETF options trades. (8) Therefore, currently no exchange possesses significant pricing power in the execution of multiply-listed equity and ETF options
order flow. More specifically, in January 2026, the Exchange had 10.39% market share of executed volume of multiply-listed
equity and ETF options trades. (9) In such a low-concentrated and highly competitive market, no single options exchange possesses significant pricing power in
the execution of options order flow. Within this environment, market participants can freely and often do shift their order
flow among the Exchange and competing venues in response to changes in their respective pricing schedules.

The proposed waiver of the Cap is reasonable because it is designed to encourage the role performed by Submitting Brokers
in facilitating QCC transactions and Floor Brokers in facilitating the execution of orders via open outcry, functions that
the Exchange wishes to support for the benefit of all market participants, and would allow the Exchange time to evaluate changes
to the amount of the Cap. Absent the proposed waiver, the Exchange believes that, as soon as firms reach the Cap, they are
likely to redirect order flow away from the Exchange, which may adversely impact other market participants trading on the
Exchange. To the extent that the proposed waiver encourages Submitting Brokers and Floor Brokers to facilitate transactions
on the Exchange instead of on a competing market, all market participants at the Exchange would benefit from the increased
liquidity. The Exchange believes the proposed waiver should continue to incent Submitting Brokers and Floor Brokers to encourage
market participants to aggregate their executions at the Exchange as a primary execution venue. To the extent that the proposed
change achieves its purpose in attracting more volume to the Exchange, this increased order flow would continue to make the
Exchange a more competitive venue for order execution, thus improving market quality for all market participants.

The Exchange believes the proposed waiver of the Cap is an equitable allocation of its fees and credits and is not unfairly
discriminatory because the proposal is based on the amount and type of business transacted on the Exchange. Submitting Brokers
and Floor Brokers are not obligated to execute QCC transactions or manual transactions to earn credits and rebates

  applied toward the Cap. However, the proposed waiver is designed to continue to encourage the roles performed by Submitting
  Brokers and Floor Brokers in facilitating the execution of QCC transactions and orders via open outcry, functions that the
  Exchange wishes to support for the benefit of all market participants.

To the extent that the proposed waiver of the Cap continues to attract manual transactions and QCCs to the Exchange, this
increased order flow would continue to make the Exchange a more competitive venue for order execution. Thus, the Exchange
believes the proposed waiver would improve market quality for all market participants on the Exchange and attract more order
flow to the Exchange, thereby improving market-wide quality and price discovery. The resulting increased volume and liquidity
would provide more trading opportunities and tighter spreads to all market participants and thus would promote just and equitable
principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system
and, in general, protect investors and the public interest.

Finally, the Exchange believes that it is subject to significant competitive forces, as described below in the Exchange's
statement regarding the burden on competition.

B. Self-Regulatory Organization's Statement on Burden on Competition

In accordance with Section 6(b)(8) of the Act, the Exchange does not believe that the proposed rule change would impose any
burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Instead, as discussed
above the Exchange believes that the proposed changes would encourage the submission of additional liquidity to a public exchange,
thereby promoting market depth, price discovery and transparency and enhancing order execution opportunities for all market
participants. As a result, the Exchange believes that the proposed change furthers the Commission's goal in adopting Regulation
NMS of fostering integrated competition among orders, which promotes “more efficient pricing of individual stocks for all
types of orders, large and small.” (10)

Intramarket Competition. The proposed waiver of the Cap would apply equally to all similarly situated Submitting Brokers and Floor Brokers. To the
extent that there is an additional competitive burden on non-Submitting Brokers or non-Floor Brokers, the Exchange believes
that any such burden would be appropriate because Submitting Brokers and Floor Brokers serve an important function in facilitating
the execution of QCC transactions and orders in open outcry, to the benefit of all market participants.

Intermarket Competition. The Exchange operates in a highly competitive market in which market participants can readily favor one of the other 17 competing
options exchanges if they deem the Exchange's fee levels to be excessive. In such an environment, the Exchange must continually
adjust its fees to remain competitive with other exchanges and to attract order flow to the Exchange. Based on publicly-available
information, and excluding index-based options, no single exchange has more than 16% of the market share of executed volume
of multiply-listed equity and ETF options trades. (11) Therefore, currently no exchange possesses significant pricing power in the execution of multiply-listed equity and ETF options
order flow. More specifically, in January 2026, the Exchange had 10.39% market share of executed volume of multiply-listed
equity and ETF options trades. (12)

The Exchange believes that the proposed waiver of the Cap reflects this competitive environment because it is designed to
continue to incent Submitting Brokers and Floor Brokers to direct manual and QCC transactions to the Exchange, to provide
liquidity and to attract order flow. To the extent that Submitting Brokers and Floor Brokers are encouraged to utilize the
Exchange as a primary trading venue for all transactions, all Exchange market participants stand to benefit from the improved
market quality and increased opportunities for price improvement. The Exchange notes that it operates in a highly competitive
market in which market participants can readily favor competing venues. In such an environment, the Exchange must continually
review, and consider adjusting, its fees and credits to remain competitive with other exchanges. For the reasons described
above, the Exchange believes that the proposed rule change reflects this competitive environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or

Others

No written comments were solicited or received with respect to the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action

The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) of the Act (13) and subparagraph (f)(2) of Rule 19b-4 (14) thereunder, because it establishes a due, fee, or other charge imposed by the Exchange.

At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such
rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection
of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission
shall institute proceedings under Section 19(b)(2)(B) (15) of the Act to determine whether the proposed rule change should be approved or disapproved.

IV. Solicitation of Comments

Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the
proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:

Electronic Comments

• Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or

• Send an email to rule-comments@sec.gov. Please include file number SR-NYSEARCA-2026-32 on the subject line.

Paper Comments

• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
  All submissions should refer to file number SR-NYSEARCA-2026-32. This file number should be included on the subject line if
  email is used. To help the

  Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments
  on the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the filing will be available for inspection and copying at the principal office of the Exchange. Do not include
  personal identifiable information in submissions; you should submit only information that you wish to make available publicly.
  We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection.
  All submissions should refer to file number SR-NYSEARCA-2026-32 and should be submitted on or before April 21, 2026.

For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. (16)

Sherry R. Haywood, Assistant Secretary. [FR Doc. 2026-06158 Filed 3-30-26; 8:45 am] BILLING CODE 8011-01-P

Footnotes

(1) 15 U.S.C. 78s(b)(1).

(2) 15 U.S.C. 78a.

(3) 17 CFR 240.19b-4.

(4) See Fee Schedule, Endnote 17 (providing that Submitting Broker credits paid for QCC trades and Floor Broker rebates paid through
the Manual Billable Rebate Program shall not combine to exceed $3,000,000 per month per firm).

(5) 15 U.S.C. 78f(b).

(6) 15 U.S.C. 78f(b)(4) and (5).

(7) See Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) (S7-10-04) (“Reg NMS Adopting
Release”).

(8) The OCC publishes options and futures volume in a variety of formats, including daily and monthly volume by exchange, available
here: https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics.

(9) Based on a compilation of OCC data for monthly volume of equity-based options and monthly volume of ETF-based options, see id., the Exchange's market share in multiply-listed equity and ETF options decreased from 13.08% in January 2025 to 10.39% for
the month of January 2026.

(10) See Reg NMS Adopting Release, supra note 7, at 37499.

(11) The OCC publishes options and futures volume in a variety of formats, including daily and monthly volume by exchange, available
here: https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics.

(12) Based on a compilation of OCC data for monthly volume of equity-based options and monthly volume of ETF-based options, see id., the Exchange's market share in multiply-listed equity and ETF options decreased from 13.08% in January 2025 to 10.39% for
the month of January 2026.

(13) 15 U.S.C. 78s(b)(3)(A).

(14) 17 CFR 240.19b-4(f)(2).

(15) 15 U.S.C. 78s(b)(2)(B).

(16) 17 CFR 200.30-3(a)(12).

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