In remarks at the U.S. Securities and Exchange Commission’s Options Market Roundtable, an SEC Commissioner outlined a set of market-structure issues for consideration as options trading and participation expand, and highlighted recent exchange rule filings that would narrow how the Options Regulatory Fee (ORF) is assessed. The remarks pointed to the proliferation of options exchanges, a decline in the number of clearing firms, and concentration among a small number of market makers, alongside concerns about barriers to entry created by connectivity and quoting demands across large numbers of series. Other topics included the proliferation of strikes with limited interest, whether legacy market maker allocation formulas still support competition, calls for greater transparency in options execution data, and the market implications of potential 24/7 trading and tokenization. As an example of an industry-led response, the Commissioner cited exchange proposals to limit ORF charges to transactions executed on the assessing exchange, in contrast to the prior approach that could allow fees to be charged in relation to activity on other venues.
U.S. Securities & Exchange Commission 2026-04-16
U.S. Securities and Exchange Commission Commissioner flags options market structure issues and welcomes exchange filings to limit the Options Regulatory Fee
At the SEC’s Options Market Roundtable, a Commissioner highlighted structural concerns in the options market, including the proliferation of exchanges and strikes, fewer clearing firms, concentration among market makers, barriers to entry from connectivity and quoting demands, and questions around legacy allocation formulas, execution transparency, 24/7 trading, and tokenization. The Commissioner also noted recent exchange rule filings that would limit the Options Regulatory Fee to transactions executed on the assessing exchange, replacing the prior approach that could capture activity on other venues.