Cboe Exchange Hikes Fees for Invisible Digital Ports
Published Date: 4/15/2025
Notice
Summary
Cboe BZX Exchange is rolling out a new way for traders to connect to its equity options platform by introducing Unitized Logical Ports. Starting now, users will see new fees tied to these ports and updated charges based on daily quotes and orders. This change affects anyone using BZX’s trading connections and kicks in immediately, so traders should get ready to adjust their budgets.
Analyzed Economic Effects
5 provisions identified: 2 benefits, 3 costs, 0 mixed.
New per‑port and set connection fees
The Exchange adopted new monthly fees for Unitized Logical Ports: BOE Unitized Logical Ports $350/port/month; Bulk Unitized Logical Ports $550/port/month; Purge Unitized Logical Ports $400/port/month. Unitized Logical Port Sets are tiered: BOE sets $2,500/month for 1st–2nd set, $3,000/month for 3rd–14th, $3,500/month for 15th–30th (Bulk and Purge sets follow similar $5,500/$6,000/$6,500 and $2,500/$3,000/$3,500 tiers respectively). Monthly fees are charged in full and are not prorated.
New ADO and ADQ volume fee tiers
The Exchange adopted Average Daily Order (ADO) and Average Daily Quote (ADQ) fees. Members get up to 2,000,000 ADO and up to 250,000,000 ADQ per trading day per month free; above those thresholds incremental fees apply per unit: ADO charged per 1,000 increments at $0.00 (Tier 1), $1.00 (Tier 2 >2,000,000), $1.50 (Tier 3 >2,500,000), $2.00 (Tier 4 >3,000,000), $2.50 (Tier 5 >3,500,000). ADQ charged per 20,000 increments at $0.00 (Tier 1), $0.05 (Tier 2 >250,000,000), $0.075 (Tier 3 >500,000,000), $0.10 (Tier 4 >1,000,000,000), $0.20 (Tier 5 >3,500,000,000). The filing includes an example where 510,000,000 ADQ results in $662.50 in ADQ fees for that month.
Affiliate activity aggregated for fees
A Member's ADO and ADQ will be aggregated with any affiliated Member that shares at least 75% common ownership when measuring thresholds and applying fees. This prevents members from avoiding fees by routing activity through affiliates.
Higher per‑firm port limit (20 → 30)
The Exchange increased the maximum number of Unitized Logical Ports allowed per Member, per Matching Unit, per port type from 20 to 30. A Member may combine individual ports and port sets up to 30 Unitized Logical Ports on a single Matching Unit.
Unitized ports optional; legacy ports unchanged
Use of Unitized Logical Ports is voluntary. Members can continue to use existing (preexisting) Logical Ports, Bulk Ports, and Purge Ports at their current rates; approximately 73% of current ports in use remain preexisting ports. Members can choose whether Unitized Logical Ports provide enough value to pay the new fees.
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