Cboe BZX Exchange Revises Fee Structure for Average Daily Quotes and Orders
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The Cboe BZX Exchange is changing its fee structure for Average Daily Quotes and Orders, effective April 1, 2026. Market participants who exceed a certain volume of quotes or orders will encounter tiered fees. While many won't see new charges, those with high activity levels—over 500 million quotes or 2 million orders—will pay incrementally higher fees. This aims to manage resource usage more effectively.
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Key Changes
- New tiered fee structure for high levels of daily quotes and orders
- Increased threshold for fee-free quote submissions from 250 million to 500 million
- No changes to the order fee structure
Obligations
What this law requires
Market participants must monitor and calculate their Average Daily Quotes (ADQ) monthly, defined as total quotes for the month divided by number of trading days, including quotes and quote updates that submit a bid or offer but excluding cancels.
Market participants must monitor and calculate their Average Daily Orders (ADO) monthly, defined as total orders for the month divided by number of trading days, including orders and cancel/replace modify orders that submit a bid or offer but excluding cancels, across all logical port types.
Members exceeding 500,000,000 average daily quotes per calendar month must pay tiered fees: $0.05 per 20,000 ADQ for Tier 2 (>500M), $0.075 for Tier 3 (>1B), $0.10 for Tier 4 (>3.5B), effective April 1, 2026.
Members exceeding 2,000,000 average daily orders per calendar month must pay tiered fees: $1.00 per 1,000 ADO for Tier 2 (>2M), $1.50 for Tier 3 (>2.5M), $2.00 for Tier 4 (>3M), $2.50 for Tier 5 (>3.5M), effective April 1, 2026.
Members must aggregate ADO and ADQ metrics with any affiliated member sharing at least 75% common ownership for purposes of fee calculation and tiering.