2025-04159Notice

Cboe EDGX Ensures Market-Makers Get Their Fair Share

Published Date: 3/17/2025

Notice

Summary

Cboe EDGX Exchange is updating how it handles order fills for Preferred Market-Makers (PMMs). Now, PMMs will always get at least one contract if they have the best price, even when orders involve fractions of contracts. This change kicks in right away and aims to make trading fairer without adding costs or delays.

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

PMMs Guaranteed At Least One Contract

The Exchange amended Rule 21.8 so that Preferred Market-Makers (PMMs) will receive at least one contract under their participation entitlement when they have a priority quote at the NBBO (best bid or offer). The change addresses rounding of fractional fills for orders of more than one contract and became operative upon filing on February 27, 2025.

May Increase Liquidity and Trading Opportunities

The Commission noted that the amendment could eliminate situations where a PMM who should have priority receives zero contracts and that this could potentially result in greater liquidity and more trading opportunities. The rule change was designated operative upon filing on February 27, 2025.

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Key Dates

Effective Date
Published Date
2/27/2025
3/17/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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