Cboe Exchange, Inc. filed a proposed rule change to amend its rules for Preferred Market-Makers (PMMs) participation entitlement. The changes include a 60/40 entitlement percentage structure for PMMs, changes to how fractional fills are rounded for orders with more than one contract, and ensuring that PMMs receive at least one contract if they have the best price quote. The Securities and Exchange Commission (SEC) has approved the immediate effectiveness of this rule, believing it will enhance liquidity and trading opportunities without significant regulatory issues. Public comments on this proposal are invited before April 8, 2025.
Simple Explanation
Cboe Exchange wants to change some rules so special traders, called Preferred Market-Makers, get more chances to trade first. This change is supposed to make trading better, and people can share their thoughts about it until April 8, 2025.