Cboe Tweaks Hidden Trade Rewards in Fee Schedule Shuffle
Published Date: 3/26/2025
Notice
Summary
Cboe EDGX Exchange is changing its fee schedule to update how traders qualify for certain volume discounts and adjust fees for some hidden trades. These changes affect traders who add or remove orders on the exchange and take effect immediately, potentially saving or costing them more depending on their trading volume. The goal is to keep fees fair and encourage better market quality starting now.
Analyzed Economic Effects
5 provisions identified: 1 benefits, 3 costs, 1 mixed.
Higher Threshold to Get Add Tier 3 Rebate
If you are a trading member trying to qualify for Add Volume Tier 3, the prongs to reach the tier were raised. The threshold that was 0.22% of total consolidated volume (TCV) is now 0.25% of TCV, and the shares test was raised from 25,000,000 shares to 30,000,000 shares; the rebate for qualifying orders remains $0.0027 per share.
Market Quality Tier 1 Volume Requirement Raised
If you are a trading member seeking Market Quality Tier 1, the add-or-remove ADV prong was raised from 0.36% of total consolidated volume (TCV) to 0.50% of TCV. The other prongs (retail remove ADV ≥ 800,000 and non-retail remove ADV ≥ 0.08% of TCV) remain unchanged and the rebate stays $0.0025 per share.
Bigger Rebate for Non-Displayed Add Tier 2
If you qualify for Non-Displayed Add Volume Tier 2, the rebate increases from $0.0020 per share to $0.0022 per share. The change is intended to encourage more non-displayed order flow by giving a higher per-share rebate.
Higher ADAV Requirement for Non-Displayed Tier 3
If you seek Non-Displayed Add Volume Tier 3, the ADAV threshold was raised from 0.11% of total consolidated volume (TCV) to 0.15% of TCV for non-displayed orders that yield fee codes DM, HA, HI, MM, or RP; the rebate for Tier 3 remains $0.0025 per share.
Changes Are Effective Immediately; Comment Deadline
The Exchange filed these fee changes on March 13, 2025 and they became effective upon filing. The SEC may suspend the change within 60 days, and the public comment deadline is April 16, 2025.
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