Nasdaq BX, Inc. has submitted a proposed rule change to the Securities and Exchange Commission (SEC) regarding its options pricing schedule. The proposed changes include modifications in the fees and rebates for Lead Market Makers (LMMs), aiming to increase their incentives to add liquidity to the exchange. Specifically, the proposal suggests increasing the LMM Rebate to Add Liquidity from $0.10 to $0.11 per contract and decreasing the LMM Fee to Add Liquidity from $0.39 to $0.38 per contract. These adjustments are intended to make the exchange more competitive and attractive to LMMs, ultimately benefiting all market participants through improved market interaction.
Simple Explanation
Nasdaq BX, Inc. wants to change some money rules to make it more fun for special market helpers to play by giving them tiny extra rewards, like finding an extra penny, to share more toys with everyone. They hope this makes everyone happy and join in the fun more!