Modification of Step Up Tier 4

NYSE Arca offers Step Up Tier 4 credits for adding liquidity of $0.0033 per share in Tapes A and C and $0.0034 per share in Tape B for firms increasing providing ADV by at least 0.40% of US CADV over the firm’s September 2019 baseline, as a percentage of US CADV.

Currently, firms qualifying for Step Up Tier 4 do not receive any additional Tape B Tier credits for providing liquidity, including incremental Tape B Tier credits associated with Less Active ETP Securities.

The Exchange proposes that firms registered as a Lead Market Maker can receive a combined credit of up to $0.0036 per share on adding volume in Tape B Securities if executing Tape B providing ADV that is at least 40% over the firm’s Q3 2019 baseline, as a percentage of Tape B CADV.

Modification of Tape B Step Up Tier

Under Tape B Step Up Tier, firms currently receive incremental credits on Tape B displayed adding liquidity when Tape B providing ADV is at least 0.50% of Tape B CADV with an increase in Tape B adding as percentage of CADV over the Q3 2019 baseline is:

Greater than 20%, then $0.0002 per share, or
Greater than 30%, then $0.0003 per share, or
Greater than 40%, then $0.0004 per share

The incremental credit combined with other credits in Tape B currently is capped at $0.0032 per share. NYSE Arca proposes to increase the combined credit cap, if firms increase their providing ADV at least 150% over the baseline, to:

$0.0033 per share if a firm registers as a Lead Market Maker or Market Maker in at least 150 Less Active ETPs in which it meets at least two Performance Metrics, and has a Tape B Adding ADV of at least 0.65% of Tape B CADV, or
$0.0034 per share if a firm registers as a Lead Market Maker or Market Maker in at least 200 Less Active ETPs in which it meets at least two Performance Metrics and has a Tape B Adding ADV of at least 0.70% of Tape B CADV.

Introduction of MPID Adding Tier

NYSE Arca proposes to introduce adding credits in Tape A and Tape C securities to MPIDs that execute providing ADV that is at least 2 times more than its providing ADV in 2Q 2021 as a percentage of US CADV as follows:

$0.0028 per share if the MPID has at least 4 million shares of providing ADV, or
$0.0029 per share if the MPID has at least 9 million shares of providing ADV

Modification of Tape B Tier 2

NYSE Arca offers three ways to qualify for Tape B Tier 2 credit of $0.0028 per share for providing displayed liquidity. NYSE Arca proposes to eliminate the ability to qualify if a firm’s Tape B provide is at least 0.20% over the firm’s Q2 2015 Tape B provide as a percentage of Tape B CADV.

The remaining two ways to qualify remain unchanged for firms that provide liquidity in Tape B of: