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Liquidity Requirements

Below are the liquidity requirement schedules, which set out the minimum liquidity requirements that:

  1. a market maker registered under the Cboe Market Maker Fee Programme must satisfy to qualify for fee relief under that Programme; and
  2. the product issuer of an Investment Product or its agent must satisfy to meet the product issuer's liquidity obligations, as agreed with Cboe upon fund admission or as otherwise varied in writing and agreed by Cboe, in accordance with the Cboe Operating Rules and Procedures.

These requirements apply to a market maker or liquidity provider during "Active Continuous Trading" as defined in the Cboe Operating Rules. Broadly, Active Continuous Trading refers to the continuous trading phase of the Cboe market, subject to certain exceptions including the first 15 minutes and last 13 minutes of continuous trading on the Cboe market. Please refer to Section 1.1 of Cboe Operating Rules for the definition of, and specific exclusions applicable to, the term "Active Continuous Trading".

The liquidity requirement schedules below set out the minimum liquidity requirements applicable by Schedule. In some cases, including where a product issuer engages an external market maker to meet the product issuer's liquidity obligations, the parties may have an agreement in place imposing stricter quoting obligations (ie, a narrower maximum spread, a greater minimum value and/or greater minimum time) than the respective value set out below.

To view the full list of symbols that are eligible under the Cboe Market Maker Fee Programme and the applicable minimum liquidity schedule for each symbol, please refer to Eligible Investment Products - Liquidity Arrangements.

Price (A$)MAXIMUM Spread1Minimum value2Minimum time3
Schedule 1
$5<2c$50,00080%
≥$540bps$50,00080%
Schedule 2
$5<3c$30,00080%
≥$560bps$30,00080%
Schedule 3
$5<5c$25,00080%
≥$51%$25,00080%
Schedule 4
$5<7c$20,00080%
≥$51.5%$20,00080%
Schedule 5
$5<10c$17,50080%
≥$52%$17,50080%
Schedule 6
$5<12c$15,00080%
≥$5250bps$15,00080%
Schedule 7
$5<17c$12,50080%
≥$5350bps$12,50080%
Schedule 8 (currently not in use)
Schedule 9
$5<1.5c$100,00080%
≥$530bps$100,00080%
Schedule RB4
$0.05<Reasonable Bid4$500490%
≥$0.05Reasonable Bid4$1,000490%
  1. "MAXIMUM SPREAD": The maximum spread is the greatest permitted price difference between the highest bid and lowest offer displayed by a market maker in the relevant investment product.
  2. "MINIMUM VALUE": The minimum value is the minimum value (quantity multiplied by price) that the market maker is required to display in its highest priced bid(s) and its offers priced within the maximum spread.
  3. "MINIMUM TIME": The minimum time is the minimum percentage of "Active Continuous Trading" (as defined in the Cboe Operating Rules) during which a market maker must display liquidity in accordance with the Maximum Spread and Minimum Value requirements.
  4. A Reasonable Bid for a Schedule RB investment product will exist if:
    1. the minimum value requirement is met (see the Schedule RB above); and
    2. if both a bid and offer are being posted by a product issuer:
      1. if the bid price is less than $0.10, the spread between the bid price and the offer price is less than $0.01; or
      2. if the bid price is at or higher than $0.10, the spread between the bid price and the offer price is less than 10% of the bid price.
    5. Note that the minimum value requirement is imposed in relation to the bid only for Schedule RB investment products. If a product issuer does not meet the abovementioned criteria for a reasonable bid, Cboe may consider the bid reasonable having regard to relevant qualitative factors including, without limitation, the prevailing market conditions and natural liquidity of the investment product.