The Cboe BZX Exchange, Inc. has proposed a rule change to adjust its fee structure for Lead Market Makers (LMMs) on its equities trading platform. The new fee schedule aims to provide better incentives for LMMs who meet specific performance standards, particularly those handling lower daily auction volumes of securities. The proposed changes include reducing payments for high-volume securities while increasing incentives for securities with lower trading volumes. The Exchange believes these adjustments will help remain competitive in the market and enhance the quality of the trading environment for exchange-traded products (ETPs) listed on Cboe BZX.
Simple Explanation
The Cboe BZX Exchange is changing how much they pay their special helpers (called LMMs) who make trading run smoothly; they’re giving more money to those who work with the less popular items and a bit less to those working with the ones everyone likes.