Cboe Lead Market Maker Program
The Cboe Lead Market Maker (LMM) Program is a rewards-based program that aims to provide
a superior trading experience for issuers and investors by incenting Lead Market Makers
to demonstrably enhance market quality in the form of tighter markets and deeper
liquidity for Cboe-listed securities. Effective July 1, 2026, the Exchange replaced its
current liquidity provision incentive structure applicable to the Exchange's ETP LMM program
with three new incentive tiers: a volume-based tier pricing structure, incremental add
rebates for Tape B displayed liquidity, and a low CADV tier stipend.
Volume-Based Tiers
During the previous month, if an LMM met Cboe's base or enhanced LMM requirements on at
least 75% of the trading days for a BZX-listed security it was assigned to, the LMM will
be eligible for the following benefits on a per symbol basis. Rebates indicated by
parentheses ( ).
| CADV Minimum |
CADV Maximum |
Base Rate |
Enhanced Rate |
| 1,000,001 |
1,000,001+ |
($0.0034)/share |
($0.0036)/share |
| 500,001 |
1,000,000 |
($0.0040)/share |
($0.0042)/share |
| 250,001 |
500,000 |
($0.0041)/share |
($0.0043)/share |
| 100,001 |
250,000 |
($0.0045)/share |
($0.0047)/share |
| 50,001 |
100,000 |
($400)/Symbol |
($650)/Symbol |
| 25,001 |
50,000 |
($425)/Symbol |
($675)/Symbol |
| 0 |
25,000 |
($450)/Symbol |
($700)/Symbol |
Incremental Add Rebates
During the previous month, an LMM who meets the base or enhanced requirements for each
ETP LMM Security, determined by the number of assignments and number of BZX-listed
securities as of the last day of that month, is eligible for the following:
| Tier |
Minimum LMM Assignments as % of Total Listed Symbols |
Additional Add Rebate – LMM Assigned Securities Displayed Add Volume |
| Tier 1 |
10% |
($0.0006)/share |
| Tier 2 |
7.5% |
($0.0005)/share |
| Tier 3 |
5.0% |
($0.0004)/share |
| Tier 4 |
2.5% |
($0.0003)/share |
Low CADV Tier
An LMM will be eligible for a monthly stipend for each ETP LMM Security with a CADV of
1,000,000 shares or fewer per month (“Low CADV ETP Securities”) if they meet
the following criteria:
| Tier |
Stipend |
Required Criteria |
| Low CADV Tier |
($200)/ETP security |
For each Low CADV ETP LMM Security, the ETP LMM:
- is a registered LMM for at least 15% of the total Low CADV ETP Securities; and
- has met the base or enhanced requirements in the previous month for ≥ 75% of their assigned Low CADV ETP Securities.
|
LMMs in Cboe-listed securities will transact for free in the Closing Auction in assigned
securities.
