2025-22611Notice

Stock Exchange Tweaks Fees to Lure More Liquidity Chasers

Published Date: 12/12/2025

Notice

Summary

The Long-Term Stock Exchange is updating its fee schedule to change how it rewards traders who help keep the market active and fair. These changes to the Liquidity Incentive Program will start on December 1, 2026, affecting anyone trading certain stocks on LTSE. The goal? To make trading smoother and more attractive by tweaking the money incentives.

Analyzed Economic Effects

5 provisions identified: 4 benefits, 0 costs, 1 mixed.

Incentive 3 revenue share raised

If you are a trading member on LTSE who qualifies for Incentive #3, the Exchange is raising the revenue-sharing percentage for LIP Standard Securities from 20% to 50%. The Exchange says this change is intended to reward firms that display quotes at the National Best Bid or Offer and to encourage more on‑exchange liquidity.

Minimum quote size cut to one lot

If you trade LIP Enhanced Securities on LTSE, the Exchange will reduce the Minimum Quoting Size (MQS) for those securities to one round lot effective December 1, 2026. The Exchange says lowering MQS to one round lot is intended to reduce participation barriers and attract more quoting activity from smaller liquidity providers.

Q4 2025 Incentive 3 split payout

For the fourth quarter of 2025, Members who qualified for Incentive #3 will share in 20% of LTSE SIP Quote Revenue for that LIP Standard Security for October and November 2025, and share in 50% of LTSE SIP Quote Revenue for December 2025. The revenue will be distributed proportionally among qualifying Member firms in those months.

Exchange may change MQS mid‑quarter

The Exchange may revise the MQS mid‑quarter by publishing updated levels on its website and providing at least one business day's notice before implementation. This gives LTSE flexibility to adjust quoting thresholds in response to market conditions.

Quarterly credit expires after one year

If you earn an Incentive #3 quarterly credit, you may apply that credit to invoices for the calendar quarter in which it was earned or any subsequent quarter, but the credit now expires at the end of the calendar quarter one year after it is earned (rolling). For example, a credit earned in Q1 2026 must be used by the end of Q1 2027.

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Key Dates

Published Date
Effective Date
12/12/2025
12/1/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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