Nasdaq PHLX raises Tier 1 multiply-listed options rebates

On October 1 2026 Nasdaq PHLX LLC filed a proposed rule change with the SEC under Release No. 34-106666; File No. SR-PHLX-2026-61. The notice, published October 14 2026, announces immediate effectiveness of the amendment to the PHLX Pricing Schedule at Options 7, Section 4 (Multiply Listed Options Fees) and invites public comment.

The amendment revises the Tier 1 rebate schedule. Currently, Tier 1 (0-500,000 qualifying contracts) pays a $0.04 per-contract rebate when a customer is on one side of the trade and $0.10 when non-customers are on both sides. The proposal raises the customer-side rebate to $0.07 and the non-customer-side rebate to $0.18, aligning Tier 1 with the existing Tier 2 rates (Tier 2: $0.07 and $0.18 respectively). The other tiers - Tier 3 (5,000,001-10,000,00 contracts) and Tier 4 (greater than 10,000,000 contracts) - remain unchanged.

In addition to the rebate adjustments, the Exchange will update Examples 2, 3 and 4 in the pricing schedule to reflect the new amounts, replace two colons with semicolons in Example 2 as a typographical correction, and amend Example 4 to correct a prior oversight that had reduced the Tier 4 non-customer rebate from $0.22 to $0.20 without a corresponding example change. The latter correction does not affect the substantive rebate rates.

The Exchange cites Section 6(b) of the Securities Exchange Act of 1934, including sections 6(b)(4) and 6(b)(5), as the statutory basis, emphasizing that the amendment serves an equitable allocation of fees and does not create unfair discrimination. The Commission's longstanding preference for market-driven pricing under Regulation NMS is referenced in support of the proposal.

The SEC will accept comments on the proposed rule change during the comment period indicated in the filing. Members, floor brokers, market makers and other participants in PHLX's multiply listed options market should review the revised rebate structure and the accompanying example updates.