Statement Regarding Minimum Pricing Increments and Access Fee Caps

Yesterday, a U.S. court of appeals issued an opinion concerning a 2024 Commission rulemaking amending, among others, Regulation NMS Rules 610 (reducing the access fee caps for protected quotations) and 612 (reducing the minimum pricing increment for quotations and orders for certain NMS stocks).[1]  The Court denied the petitioners challenge to the amendments to the access fee caps contained in the Commission’s rulemaking. I welcome the Court’s decision.

In light of potential uncertainty created by the litigation, market participants may need additional time to prepare for compliance.  I intend to direct staff to evaluate whether potential adjustments to the compliance dates related to the access fee caps and minimum pricing increments may be necessary .[2]

[1] See Cboe Global Markets, Inc., et al. v. SEC, No. 24-1350 (D.C. Cir. 2025), available at https://media.cadc.uscourts.gov/opinions/docs/2025/10/24-1350-2139991.pdf. See also Securities Exchange Act Release No. 101899 (Dec. 12, 2024), available at https://www.sec.gov/files/rules/other/2024/34-101899.pdf. The Commission order stayed Rules 600(b)(89)(i)(F), 610(c) and 612 pending the completion of judicial review of the petitions for review.  The order did not stay the amendments to Rule 610(d), Rule 603(b), and the definitions of odd-lot information and round lot in Rule 600(b) .

[2] See Regulation NMS: Minimum Pricing Increments, Access Fees, and Transparency of Better Priced Orders, Rel. No. 34-101070 (Sept. 18, 2024), 89 Fed. Reg. 81620 (Oct. 8, 2024), available at https://www.govinfo.gov/content/pkg/FR-2024-10-08/pdf/2024-21867.pdf.  For Rule 612, Rule 610, and the round lot definition, the compliance date is the first business day of November 2025, or November 3, 2025.  For odd-lot information, the compliance date is the first business day of May 2026, or May 4, 2026.  The Commission has also received requests to grant a temporary two-year exemption from mandating the dissemination of certain odd-lot information.  See letter from James P. Dombach, Davis Wright Tremaine, Counsel to the Operating Committees of the CTA/CQ and UTP Plans dated July 9, 2025; see also letter from Howard Meyerson, Managing Director, Financial Information Forum, dated Sept. 24, 2025.