LTSE Bribes Traders with New Liquidity Goodies
Published Date: 7/25/2025
Notice
Summary
The Long-Term Stock Exchange (LTSE) just updated its fee schedule to launch a Liquidity Incentive Program that rewards traders who help keep the market active and smooth. This change, effective July 10, 2025, aims to boost trading by encouraging more buying and selling, benefiting everyone who trades on LTSE. If you’re a trader or investor on LTSE, expect new perks and possibly lower costs when you add liquidity!
Analyzed Economic Effects
7 provisions identified: 7 benefits, 0 costs, 0 mixed.
80% SIP Revenue Share for Enhanced Symbols
If you are an LTSE member quoting at the national best bid or offer (NBBO) in a designated LIP Enhanced Security for at least 60% of the Regular Market Session in a calendar quarter and at the Minimum Quoted Size, you may receive a proportional share of 80% of LTSE's SIP Quote Revenue for that security. The Minimum Quoted Size will be published quarterly and the Program determines eligibility on a quarterly basis.
Lower Taker Fees in Enhanced Securities
LTSE reduces taker fees for LIP Enhanced Securities from 30 mils to 20 mils, effective July 10, 2025. All Members may trade at the lower taker rate in those Enhanced Securities with no quoting obligation.
Choice of Credit or 20% Quote Share for Standard Symbols
Members that qualify for Incentive #1 in at least 50 LIP Enhanced Securities and quote at the NBBO in a LIP Standard Security for at least 25% of the Regular Market Session may choose either a proportional share of 20% of LTSE's SIP Quote Revenue for that Standard Security or a quarterly credit of $75 per LIP Standard Security per MPID. Members must notify LTSE of their selection before the end of the calendar quarter.
Initial Round-Lot Minimum Quoted Size; Oct 1, 2025 Change
For the first calendar quarter after the Program roll-out, LTSE will temporarily set the LIP Enhanced Security Minimum Quoted Size at a round lot across all LIP Enhanced Securities. The Exchange anticipates restoring the graduated minimum size thresholds in the LIP's second quarter on October 1, 2025, and will publish updated thresholds on its website in advance.
Quarterly Publication and Timing Rules
LTSE will publish the list of LIP Enhanced Securities on its website and will reevaluate and update that list prior to each quarter; updates will be published on the Schedule of Fees no later than one day prior to the start of the quarter (the Exchange will endeavor to update up to five trading days beforehand). Incentive #1 and Incentive #3 eligibility and calculations are determined quarterly, and revenue is shared after LTSE receives SIP quote revenue.
Qualification Exclusions Protect Members' Eligibility
LTSE will exclude from percent-time-at-NBBO calculations any trading day when the Exchange has a system disruption lasting more than 60 minutes during Regular Market Hours, any scheduled early market close day, and the Russell Reconstitution Day (typically the last Friday in June).
Open Participation; No Two-Sided Quoting Required
The LTSE Liquidity Incentive Program is open to all LTSE Members and does not impose any two-sided quotation obligations on Members seeking to qualify for the Program.
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