# 2025-04336: Cboe Tweaks Perks for Top Market Wizards

2025-04336, Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules Related to the Preferred Market-Maker (“PMM”) Participation Entitlement, is a Federal Register notice from Securities and Exchange Commission published 2025-03-18, effective 2025-02-25 (as of 2026-06-08).

- Canonical: https://policyrisk.com/federal-register/2025-04336
- As of: 2026-06-08
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2025-04336
- Title: Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules Related to the Preferred Market-Maker (“PMM”) Participation Entitlement
- Type: Notice
- Agencies: Securities and Exchange Commission
- Citation: 90 FR 12624
- Published: 2025-03-18
- Effective: 2025-02-25
- Comments close: not stated
- Significant: no
- Touches household money: no
- Regulation identifier numbers: none
- Last updated: 2026-06-08

## In one line

Cboe Tweaks Perks for Top Market Wizards

## 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.

## Effects PRIA read

- PMM 60/40 Participation Split: benefit, medium. 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.
- New Rounding for Fractional Fills: benefit, low. 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.
- PMM Guaranteed Minimum One Contract: benefit, medium. 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.
- Rule Change Effective Immediately: benefit, low. 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.
- Exchange Says Change May Boost Liquidity: benefit, medium. 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.

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## Sources
- [2025-04336 on federalregister.gov](https://www.federalregister.gov/documents/2025/03/18/2025-04336/self-regulatory-organizations-cboe-exchange-inc-notice-of-filing-and-immediate-effectiveness-of-a)
- [2025-04336 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2025-03-18/pdf/2025-04336.pdf)

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- [All Federal Register documents](https://policyrisk.com/federal-register)

Source: PRIA, https://policyrisk.com/federal-register/2025-04336 (as of 2026-06-08).