NYSE Arca filed a rule change with the Securities and Exchange Commission on December 1, 2025, modifying its Options Fee Schedule in two ways: a new credit tier for Firm and Broker Dealer order flow, and an additional rebate incentive for Market Makers posting liquidity in three of the most actively traded ETF options — IWM, QQQ, and SPY.

Key Points

  • What: NYSE Arca added a new lower-volume pricing tier for Firm/Broker Dealer posted interest and a new Market Maker credit for IWM, QQQ, and SPY liquidity posting.
  • Who: NYSE Arca OTP Holders (options trading permit holders), Firms, Broker-Dealers, and Market Makers trading on NYSE Arca.
  • When: Effective December 1, 2025 — already in force.
  • Impact: Broker-dealers posting at lower volume thresholds can now earn a $0.32/contract credit; market makers hitting a combined IWM/QQQ/SPY volume threshold unlock credits of $0.36–$0.45/contract.

New Tier for Firms and Broker-Dealers

NYSE Arca's existing Firm and Broker Dealer (FBD) Posting Incentive previously required participants to hit at least 0.30% of Total Customer Average Daily Volume (TCADV) to qualify for the top credit of $0.35 per contract.

The new structure inserts a lower entry point:

  • New Tier 1: Post at least 0.20% of TCADV → earn $0.32/contract
  • Tier 2 (formerly Tier 1): Post at least 0.30% of TCADV → earn $0.35/contract
  • Base rate: $0.28/contract (unchanged)

The idea is to pull in more Firm and Broker Dealer order flow by making it easier to qualify for enhanced credits. Affiliates can pool volume to hit the threshold.

New Market Maker Incentive for IWM, QQQ, and SPY

Market Makers already had multiple credit tiers for posting liquidity in SPY. NYSE Arca is now adding a combined IWM/QQQ/SPY incentive:

  • Threshold: Post at least 0.90% of total combined IWM, QQQ, and SPY industry average daily volume (ADV) in a calendar month.
  • Reward: $0.36/contract credit on IWM and QQQ executions; $0.45/contract credit on SPY executions.

As with existing tiers, a Market Maker qualifying for multiple credits always receives the highest applicable rebate. For example, if a market maker qualifies for both the $0.40 Super Select Tier and the new $0.45 SPY credit, they pocket the $0.45.

Why NYSE Arca Made This Move

NYSE Arca held just 10.09% market share in multiply-listed equity and ETF options in October 2025 — down from 12.55% a year earlier. With 18 competing options exchanges fighting for the same order flow, the exchange is using fee incentives to win back volume, particularly in the most liquid ETF options classes.

What You Should Do

This rule change is already in effect. If you are an OTP Holder, Firm, Broker-Dealer, or Market Maker trading on NYSE Arca:

  • Review your current volume levels against the new FBD tier threshold (0.20% TCADV) to see if you now qualify for the $0.32/contract credit.
  • Market Makers should model whether reaching 0.90% of combined IWM/QQQ/SPY industry ADV is achievable and compare the new credit to existing tier payouts.
  • No action is required if you are an individual investor or retail trader — these fee changes apply only to exchange participants and market makers, not retail brokerage accounts.

This is not an immigration policy change and does not affect visa holders or international students.