Cboe Tweaks Perks for Top Market Wizards
Published Date: 3/18/2025
Notice
Summary
Cboe Exchange is updating the rules for Preferred Market-Makers (PMMs) to give them a clearer 60/40 share of trades and make sure they get at least one contract when they quote the best price. This change affects traders using PMM roles and starts right away, aiming to make trading fairer and smoother without extra costs. The new rounding method for partial trades also helps keep things simple and fair.
Analyzed Economic Effects
5 provisions identified: 5 benefits, 0 costs, 0 mixed.
PMM 60/40 Participation Split
The Cboe rule change amends Rule 5.32 so Preferred Market-Makers (PMMs) receive a 60/40 participation entitlement split. This 60/40 percentage structure defines how trades are allocated under the PMM participation entitlement.
PMM Guaranteed Minimum One Contract
Under the amended Rule 5.32, a PMM that is quoting at the best price (the highest bid or lowest offer) will receive at least one contract under the participation entitlement. The rule ensures a PMM receives a minimum of one contract when it has the best quote.
Exchange Says Change May Boost Liquidity
The Commission noted the Exchange believes the PMM entitlement change could result in greater liquidity and more trading opportunities, to the benefit of investors. The Commission cited that potential benefit when waiving the 30-day delay.
New Rounding for Fractional Fills
The Exchange changed how the System rounds fractional fills that result from the PMM participation entitlement for orders of more than one contract. The new rounding method is intended to simplify and make allocation of partial fills fairer.
Rule Change Effective Immediately
The Exchange filed the change on February 25, 2025, and the Commission designated the proposed rule change to be operative upon filing, waiving the normal 30-day operative delay. Interested persons may submit comments on or before April 8, 2025.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-10373 — Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222 — Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651 — Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-11919 — Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Exchange's Fee Schedule Concerning Equities Transaction Pricing
MEMX is changing its fees starting June 1, 2026, by lowering some rebates for certain stock trades that add liquidity, especially for hidden and price-improved orders. These updates affect traders and members who use MEMX, meaning they might earn a bit less back on some trades. The goal? Keep things fair and balanced while keeping the exchange running smoothly.
2026-11927 — Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rules 18.7 and 18.9 To Permit an Increase in Position and Exercise Limits for Options on IBIT
MEMX is raising the limits on how many options traders can hold and exercise for the iShares Bitcoin Trust ETF (IBIT). This change affects anyone trading IBIT options and lets them handle bigger positions starting right away. It’s designed to keep MEMX competitive and support growing market interest without any immediate cost impact.
2026-11922 — Self-Regulatory Organizations; Green Impact Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.240 (Trade Reporting and Dissemination of Quotations) To Conform With Amendments to Rules 600 and 603 of Regulation NMS Approved by the Commission That Concern the Reporting and Dissemination of Odd-Lot Information, and an Additional Ministerial Change to Rule 11.220 To Correct a Typographical Error
Green Impact Exchange is updating its trade reporting rules to match new federal rules about sharing odd-lot trade info (small stock orders). They’re also fixing a tiny typo in another rule. These changes take effect right away and help keep trading info clear and accurate for everyone involved.
Previous / Next Documents
Previous: 2025-04335 — Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Connectivity Fee Schedule
NYSE Arca is updating its Connectivity Fee Schedule to reflect the name change of NYSE Chicago to NYSE Texas. This change affects anyone using the Exchange’s connectivity services but doesn’t change any fees or costs. The update is effective immediately, so users should note the new name right away!
Next: 2025-04337 — Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Connectivity Fee Schedule and NYSE Propriety Market Data Fees
The New York Stock Exchange is updating its fee schedule to reflect the name change of NYSE Chicago to NYSE Texas. This change affects traders and data users who pay connectivity and market data fees, but it won’t change the prices. The update is effective immediately as of February 27, 2025.