MEMX proposes new Customer (contra Non-Customer) Volume Tier for Options Rebates

On September 30, 2026, MEMX LLC filed a proposed rule change with the Securities and Exchange Commission (Release No. 34-106602; File No. SR-MEMX-2026-32; FR Doc No. 2026-20707). The notice, published in the Federal Register on October 6, 2026 (Vol. 91, No. 195, pp. 64706-64709), solicits comments and announces immediate effectiveness of the amendment to the MEMX Options Fee Schedule.

The amendment renames the existing Volume Tier as the "Customer (contra Non-Customer) Volume Tier" and restricts eligibility for the enhanced rebate to executions of Added Customer Penny Volume where the contra-party is a Non-Customer - defined as a Market Maker, Firm, Away Market Maker, or Broker-Dealer. The base rebate remains $0.49 per contract, while the enhanced rebate stays at $0.53 per contract for qualifying members. The change does not alter the ADAV threshold or the calculation of total consolidated volume (TCV) that determines tier qualification.

MEMX notes that it holds approximately 4.0% of the options market share, with no single exchange exceeding roughly 18.8% (as of September 24, 2026). In this low-concentration, highly competitive environment, the Exchange argues that fee structures must reflect market forces and that the proposed tier continues to incentivize higher average daily added volume (ADAV) while reducing the Exchange's rebate expenditures.

The Exchange cites Section 6 of the Securities Exchange Act of 1934, including §§6(b)(4) and 6(b)(5), as the statutory basis for the amendment, emphasizing the equitable allocation of reasonable dues, fees, and charges among members. The proposed rule change is slated for implementation on October 1, 2026, pending any comments received during the comment period.