Cboe BYX Exchange, Inc. has proposed a new rule to introduce a monthly fee for members who use multiple Market Participant Identifiers (MPIDs). The fee of $150 per MPID, with the first MPID being free, is intended to encourage efficient use of MPIDs. The exchange believes this fee is reasonable and consistent with similar charges by other exchanges like Nasdaq, which imposes a higher MPID fee. The proposal is now open for public comments, and interested individuals can share their feedback with the Securities and Exchange Commission.
Simple Explanation
Cboe BYX Exchange wants to charge businesses a new fee each month if they use more special codes, called MPIDs, for trading, but they get one code for free. Some people worry this might be unfair because it might affect big and small businesses differently, and it's not very clear how it will change the way businesses trade.