Nasdaq PHLX LLC has filed a proposal with the Securities and Exchange Commission to eliminate its Market Data Revenue (MDR) Rebate Program. This program was designed to increase market activity by offering financial incentives for displaying orders on the exchange, but it hasn't been successful in attracting enough activity. The program's complexity, combined with its limited financial benefits, makes it challenging to maintain, leading to the decision to discontinue it. The Securities and Exchange Commission invites public comments on this proposed change, suggesting that Nasdaq PHLX operates in a competitive market where participants can choose to trade elsewhere if dissatisfied with the changes.
Simple Explanation
Nasdaq PHLX decided to stop a program that gave money to people for showing prices on their trading platform because not enough people used it and it was too complicated. Now, everyone can share their thoughts about this change, and if they don't like it, they can choose to trade somewhere else.