MEMX Launches Equity Rewards for Active Options Traders
Published Date: 6/13/2025
Notice
Summary
MEMX is rolling out a new Supplemental Equity Rights Program that gives traders on its options platform extra chances to earn equity in the company. This program builds on a similar one started last year and kicks in right away, rewarding active participants with potential ownership perks. If you trade options on MEMX, this could mean more value for your activity starting now!
Analyzed Economic Effects
5 provisions identified: 3 benefits, 1 costs, 1 mixed.
Pay $500,000 to Join Program
If you want to join the Supplemental Warrants Program, you must pay a $500,000 Prepayment Fee by the Commitment Deadline (in advance of May 28, 2025, or a later date specified by MEMX). Each eligible participant may purchase only one ticket and the program is capped at five (5) tickets total.
Prepayment Can Offset Trading Fees
The $500,000 Prepayment Fee can be applied during the Term to MEMX Options connectivity fees, market data fees, membership fees, and transaction fees; any remaining Prepayment Fee will be refunded at the end of the Term. The Term runs from June 1, 2025 to June 1, 2026.
Warrants: 139,800 per Ticket, Monthly Vesting
Each ticket entitles a participant to 139,800 unvested warrants that vest equally each calendar month during the 12-month Term (11,650 warrants per month) if the participant meets volume targets. Vesting requires step-up volume of 25 basis points of TCV over the participant's February–March 2025 baseline for full monthly vesting, with a 15 basis points minimum for proportional vesting; Non-Penny option trading receives double credit.
Exercise Window and Ownership Limits
Vested warrants may be exercised from the time of vesting until May 1, 2031 to purchase Nonvoting Common Units at the warrant strike price, but such units are subject to transfer restrictions and ownership limits (e.g., no single Exchange Member and its related persons may own more than 20% of any class of Units).
Program Aimed to Improve Market Liquidity
MEMX says the Supplemental Warrants Program is designed to encourage participants to direct more order flow to MEMX Options, which MEMX expects will increase liquidity, provide tighter spreads, and benefit other market participants. The Exchange states the program is supplemental to its May 1, 2024 Original Warrants Program.
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Previous / Next Documents
Previous: 2025-10745, Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Exchange's Fee Schedule To Extend the Sunset Provision Related to the Options Regulatory Fee (ORF)
MEMX is extending the deadline for its Options Regulatory Fee (ORF) from May 31 to December 31, 2025. This means traders and members using MEMX’s options market will keep paying this fee a bit longer. The change kicks in on June 1, 2025, keeping the fee schedule steady through the end of the year.
Next: 2025-10747, Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Equity 6, Section 4 (Exchange Sharing of Participant Risk Settings) To Permit the Allocation of Responsibility to Clearing Members
Nasdaq is updating its rules to let clearing members (the folks who handle the final steps of trades) take on more responsibility for managing risk settings. This change affects trading participants who don’t clear their own trades and aims to make risk management smoother and clearer. The new rule is effective immediately, helping the market stay safe without slowing down trading or adding extra costs.