Cboe Exchange, Inc. proposed a temporary increase in its Options Regulatory Fee (ORF) from $0.0017 to $0.0023 per contract side, effective April 1, 2025, to cover more of its regulatory costs. The revenue from ORF helps pay for the regulation of customer trading activities, like monitoring and investigations. This increase will still keep ORF revenue below 75% of Cboe's total regulatory costs. The new rate is set to end on December 31, 2025, and the Exchange plans to explore a revised ORF model and possibly seek further adjustments in the future.
Simple Explanation
Cboe Exchange, Inc. wants to make a rule that slightly raises the fee they charge for checking on trading activities to make sure they're fair, and this new rule will last until the end of 2025. This little fee increase helps cover the cost of keeping trading safe and honest, but it won't cover more than 75% of their total costs for doing this job.