The Cboe BZX Exchange, Inc. has proposed a rule change to the Securities and Exchange Commission (SEC) to amend its fee structure for listing certain financial products called Outcome Strategy Exchange-Traded Products (ETPs). This change involves expanding the annual listing fee cap, now $16,000 per year, to include ETPs that base their returns on the performance of more than one reference index. The proposal aims to make listing costs more affordable and to encourage more issuers to list or transfer their ETPs to the Exchange, thereby fostering competition. The SEC is inviting public comments on this proposal before it makes a final decision.
Simple Explanation
The Cboe BZX Exchange wants to make it cheaper for people to list certain money products called Outcome Strategy ETPs, which are like special financial tools that track how well different things are doing. They are asking for permission to charge less for these money products that look at more than one thing, hoping it will help more people use their exchange, but we don't know exactly how this will change things for them.