MEMX LLC Fee Schedule Amendments for Equities Transaction Pricing
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This law introduces changes to MEMX LLC's fee schedule for equities transactions. It modifies existing criteria for Liquidity Provision Tier 4 and introduces a new Retail Sub-Dollar Liquidity Removal Tier, targeting competitive market dynamics to enhance liquidity and market quality. Members engaged in equities trading on this exchange are directly affected, with potential impacts on their transaction costs.
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Key Changes
- Modification of criteria under Liquidity Provision Tier 4
- Introduction of a new Retail Sub-Dollar Liquidity Removal Tier
- Elimination of Retail Order exclusion in Liquidity Provision Tier 4 criteria
Obligations
What this law requires
MEMX LLC members must achieve an Average Daily Average Volume (ADAV) equal to or greater than 0.10% of Total Covered Volume (TCV) to qualify for Liquidity Provision Tier 4 rebate of $0.0015 per share, with Retail Orders now included in the ADAV calculation (previously excluded).
MEMX LLC members qualified for Liquidity Provision Tier 4 must receive an enhanced rebate of $0.0028 per share for executions of Added Displayed Volume in securities priced at or above $1.00 per share.
MEMX LLC members must achieve an ADAV in securities priced below $1.00 per share equal to or greater than 20,000,000 shares to qualify for the Retail Sub-Dollar Liquidity Removal Tier.
MEMX LLC members qualified for Retail Sub-Dollar Liquidity Removal Tier must be charged a reduced fee of 0.125% of total dollar value (instead of standard 0.28%) for executions of Retail Orders in securities priced below $1.00 per share that remove liquidity.
MEMX LLC must implement the fee schedule amendments to Liquidity Provision Tier 4 and adoption of Retail Sub-Dollar Liquidity Removal Tier immediately upon effectiveness of this rule change.