Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Cboe BZX Exchange Fee Schedule
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The Cboe BZX Exchange is revising its fee schedule, specifically the criteria for Liquidity Management Program (LMP) Tiers 1 and 2. The changes simplify the qualifications for earning additional rebates for members participating in market-making activities. By removing certain requirements, the Exchange aims to make it more attractive for members to participate and increase the flow of trades to its platform.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Removal of NBBO Size Time requirement for LMP Tiers 1 and 2
- Simplification of criteria for additional rebates
- Encouragement of increased trade flow to the exchange
Obligations
What this law requires
Members must enroll in at least 50 BZX-listed Liquidity Management Program (LMP) Securities to qualify for LMP Tier 1 rebates.
Members qualifying for LMP Tier 1 must maintain a National Best Bid and Offer (NBBO) Time of at least 15% for at least 50% of trading days in the applicable month.
Members qualifying for LMP Tier 1 must maintain a Displayed Size Time of at least 90% for at least 50% of trading days in the applicable month.
Members must enroll in at least 100 BZX-listed LMP Securities to qualify for LMP Tier 2 rebates.
Members qualifying for LMP Tier 2 must maintain a National Best Bid and Offer (NBBO) Time of at least 15% for at least 50% of trading days in the applicable month.