Core Viewpoint - US equity options exchanges are proposing a change in the regulatory fee structure, moving away from a long-standing practice that allows them to charge fees for transactions conducted on rival exchanges [1][6]. Group 1: Options Regulatory Fee (ORF) - The Options Regulatory Fee (ORF) is a collective fee charged by exchanges for options trading, which helps cover compliance costs like market surveillance [2]. - Currently, customers are charged ORF by both the exchanges that list their contracts and those that do not, leading to dissatisfaction in the options market [3][4]. - The fee per contract is minimal, typically just a fraction of a cent, but accumulates to significant costs for businesses, with estimates suggesting exchanges could earn between $181 million to $234 million from ORF in 2025 [4]. Group 2: Proposed Changes - Major exchanges, including Cboe Global Markets, Nasdaq, and Miami International Holdings, have filed with the SEC to implement a system where ORF is only charged on transactions conducted on their own platforms [6]. - The proposed model, referred to as "eat what you kill," aims to ensure that exchanges only assess fees on their own transactions, addressing the current inequity in fee collection [7]. - An example highlighted is that Cboe, which lists S&P 500 Index options, currently allows other exchanges to collect ORF fees on trades of its proprietary products [8].