Change in NYSE Amex Fees for February 2014

Date:
January 31, 2014
Audience:
NYSE Amex Options Participants
Subject:
Change in NYSE Amex Fees on February 3, 2014
Summary:
NYSE Amex Options, subject to filing with the SEC, will amend its Fee Schedule as described below:
Options Regulatory Fee (“ORF”)
As previously announced, the Exchange is changing the ORF to $0.0055 per contract, effective February
3, 2014.
Market Access and Connectivity (“MAC”) Subsidy
The Exchange will pay a rebate to eligible ATP Holders that provide electronic access and connectivity to
the Exchange to other ATP Holders and/or utilize such access themselves. To qualify for the MAC
Subsidy, an ATP Holder must notify the Exchange no later than the last business day of the month in
which the ATP Holder would like to be eligible for the MAC Subsidy. Notification must be made by
emailing the Exchange at [email protected] and the email must include the name of the ATP
Holder seeking the MAC Subsidy as well as a list of unique connections utilized by the ATP Holder to
provide access and connectivity to the Exchange for either the ATP Holder or other ATP Holders that are
using the ATP Holder’s systems to access the Exchange. The rebate will be paid upon achieving certain
volume thresholds consisting of electronic Non-NYSE Amex Market Maker, Firm Proprietary,
Professional Customer and/or Broker Dealer ADV’s as shown in the table below:
Non-NYSE Amex Options Market
Maker, Firm Proprietary, Professional
Customer and Broker Dealer Electronic
Contract ADV Tiers (excludes mini
options and volumes associated with
QCC trades)
At least .45% of Total Industry
Customer equity and ETF option ADV
At least .85% of Total Industry
Customer equity and ETF option ADV
At least 1.25% of Total Industry
Customer equity and ETF option ADV
Per Contract MAC Subsidy –
Retroactive To All Qualifying Contract
Volumes Upon Achieving A Higher
ADV Tier (excludes mini options and
volume associated with QCC trades)
$0.04
$0.06
$0.08
QCC Service Fee Elimination and Other Changes
The Exchange is eliminating the Service Fee for Firms, Specialists, e-Specialists, and Market Makers (both
Directed and non-Directed) exceeding the Monthly Fee Cap that trade with either Customers or nonCustomers. As a result, any participant, upon reaching their respective monthly fee cap that
participates in a QCC trade will not be charged the Service Fee of $0.05 when they trade contra to a nonCustomer or $0.10 when they trade contra to a Customer.
At the same time, the Exchange is introducing a maximum monthly QCC rebate of $375,000. In any one
month, the most the Exchange will pay to any Floor Broker firm under the “Floor Broker Rebate for
Executed QCC Orders” will now be $375,000.
Elimination of Electronic Firm, Professional Customer and Broker Dealer ADV Tiers
The Exchange is eliminating the “Professional Customer and Broker Dealer Electronic ADV Tiers For
Taking Liquidity” and the “Firm Proprietary Electronic ADV Tiers”. Instead, the per contract rate charged
for electronic Firm Proprietary, Professional Customer and Broker Dealer volumes will be $0.32 per
contract, which is the rate charged currently for the lowest level of electronic Firm Proprietary,
Professional Customer and Broker Dealer volume tiers. Note that this activity may now be eligible for
the MAC Subsidy, described above.
Firm Facilitation
The Exchange is amending the Fee Schedule to limit the Firm Facilitation rate of $0.00 per contract to
those trades that are executed in open outcry, that clear in the firm range (clearance account “F”) with a
customer on the contra (clearance account “C”) and the same clearing firm symbol on both sides of the
trade.
Revised Customer Electronic ADV Tiers for Order Flow Providers (“OFPs”)
The Exchange is modifying the existing “Customer Electronic ADV Tiers”, which will be renamed “OFP
Electronic ADV Tiers” to more accurately reflect the nature of the tiers. Next, the Exchange is adopting
two alternate ways for an OFP to earn a rebate on certain of their electronically executed volumes. Any
OFP that qualifies under both Tier 1A and Tier 1B will only be paid the larger of the two rebates. Volume
from executions of QCC Orders, Strategy Executions, Mini options contracts, electronic Complex Orders
and orders that are routed to one or more exchanges in connection with the Options Order Protection
and Locked/Crossed Market Plan referenced in Rule 991NY (“routed orders” for purposes of this rebate)
shall not count toward any of the OFP Electronic ADV Tiers. The alternate tiers, the qualifying criteria,
eligible volumes and rebates are described in the table below:
OFP Electronic ADV Tiers
Rebate Per Contract For Certain Electronic Equity
and ETF Option Volume (excludes volume from
QCC Orders, Strategy Executions, Complex Orders
and orders routed away in connection with the
Options Order Protection and Locked/Crossed
Market Plan referenced in Rule 991NY )
TIER 1A - Electronic Customer volume of at least
2.0% of Total Industry Customer equity and ETF
option ADV – rebate paid on Customer electronic
$0.06
contract volumes in excess of 200,000 ADV only
OR
TIER 1B - Electronic volume of at least .75% of
Total Industry Customer equity and ETF option
ADV where 40% of the electronic volume consists
of Non-NYSE Amex Options Market Maker, Firm,
Professional Customer and/or Broker Dealer –
rebate paid on all Customer electronic contract
volumes
$0.06
Billing Procedures
Consistent with current billing procedures, any rebates earned will be processed with a one month lag.
For example, a rebate earned for activity in February will be processed with March invoices.
Contact Info:
If you have further questions this notice, please contact: Mike Babel (212) 656-4744 or your
Relationship Manager at [email protected].
A complete copy of the NYSE Amex options Fee Schedule can be found here.
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2014 NYSE Euronext. All Rights Reserved.

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