Statement Summary
The Securities and Exchange Commission has announced a proposed rule change by NYSE National, Inc. to amend its Schedule of Fees and Rebates, specifically introducing a new fee structure for orders routed through the Retail Price Improvement Seeking strategy, effective May 13, 2025. This amendment aims to provide Type 1 Retail Orders the opportunity to access additional liquidity on the NYSE without any routing fee for orders at or above $1.00. The Exchange emphasizes that this functionality is optional, designed to enhance competitive access for retail orders and aligns with the Commission’s goal of promoting competition in the securities market. The NYSE believes the proposal supports equity among market participants by equally applying the fee structure to all relevant orders while responding to competitive pressures within a fragmented market.
Original Statement
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103087; File No. SR-NYSENAT-2025-11]
Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the NYSE National Schedule of Fees and Rebates
May 20, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”) and Rule 19b-4 thereunder, notice is hereby given that, on May 13, 2025, NYSE National, Inc. (“NYSE National” or the “Exchange”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I, II, and III 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.
Self-Regulatory Organization’s Statement of the Proposed Rule Change
The Exchange proposes to amend the NYSE National Schedule of Fees and Rebates (“Fee Schedule”) to reflect the fee for orders routed pursuant to the Retail Price Improvement Seeking routing strategy. The proposed change is available on the Exchange’s website at www.nyse.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room.
Purpose and Statutory Basis of Proposed Rule Change
The Exchange proposes to implement the fee change effective May 13, 2025. The Exchange operates in a highly competitive market. The Securities and Exchange Commission (“Commission”) has 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.
While Regulation NMS has enhanced competition, it has fostered a fragmented market structure where trading in a single stock can occur across multiple trading centers. The Exchange believes that the shifting market share among exchanges demonstrates that market participants can shift order flow in response to fee changes.
Proposed Rule Change Details
The Retail Price Improvement Seeking routing strategy is intended to provide Type 1 Retail Orders with the option to access additional retail liquidity after interacting with interest on the Exchange Book. This strategy allows remaining quantities to be routed to NYSE, providing additional price improvement opportunities.
The Exchange proposes to amend the Fee Schedule to specify that, for orders in securities at or above $1.00, there will be no fee for orders routed pursuant to the Retail Price Improvement Seeking routing strategy. This routing functionality is completely optional, and ETP Holders can readily select from various routing service providers.
Burden on Competition
The Exchange believes that the proposed rule change would not impose any burden on competition that is not necessary or appropriate. The proposed change furthers the Commission’s goal of fostering integrated competition among orders, promoting efficient pricing for all types of orders. The proposed change does not significantly depart from existing pricing and allows ETP Holders the option to choose alternatives that suit their trading needs.
Solicitation of Comments
Interested persons are invited to submit written data, views, and arguments concerning the proposed rule change. Comments may be submitted electronically or via paper:
Electronic Comments:
• Use the Commission’s internet comment form
• Send an email to rule-comments
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-NYSENAT-2025-11.
