# 2025-23816: Cboe Updates Rules for Lead Market Maker Performance Standards

2025-23816, Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the Minimum Performance Standards Applicable to the Exchange's Lead Market Maker (“LMM”) Program in BZX-Listed Exchange-Traded Product (“ETP”) Securities as Provided in Footnote 14 of the Exchange's Fee Schedule and To Remove Closed-End Funds (“CEFs”) From the ETP LMM Program, is a Federal Register notice from Securities and Exchange Commission published 2025-12-29, effective 2025-12-01 (as of 2026-06-08).

- Canonical: https://policyrisk.com/federal-register/2025-23816
- As of: 2026-06-08
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2025-23816
- Title: Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the Minimum Performance Standards Applicable to the Exchange's Lead Market Maker (“LMM”) Program in BZX-Listed Exchange-Traded Product (“ETP”) Securities as Provided in Footnote 14 of the Exchange's Fee Schedule and To Remove Closed-End Funds (“CEFs”) From the ETP LMM Program
- Type: Notice
- Agencies: Securities and Exchange Commission
- Citation: 90 FR 60832
- Published: 2025-12-29
- Effective: 2025-12-01
- Comments close: not stated
- Significant: no
- Touches household money: no
- Regulation identifier numbers: none
- Last updated: 2026-06-08

## In one line

Cboe Updates Rules for Lead Market Maker Performance Standards

## Summary

Cboe BZX Exchange is updating the rules for its Lead Market Maker (LMM) program that supports trading of certain exchange-traded products (ETPs). They’re raising the performance standards for LMMs and removing closed-end funds (CEFs) from the program. These changes take effect immediately and aim to boost market quality and fairness for traders and investors.

## Effects PRIA read

- Higher LMM Performance Standards: cost, medium. If you are a Lead Market Maker (LMM) on Cboe BZX, the Exchange raised and memorialized minimum performance standards in its fee schedule. For example, across all six asset-class categories an ETP LMM must now maintain two-sided quotes at least 98% of the time during Regular Trading Hours, and NBBO-…
- CEFs Removed From ETP LMM Program: mixed, low. Cboe BZX will remove closed-end funds (CEFs) from the Exchange's ETP LMM program and create a separate ‘‘Qualified CEF LMM’’ definition. CEF LMMs will instead be subject to the LMM performance standards set forth in Rule 11.8(e)(1)(E)(ii).
- Incentive Amounts Remain Unchanged: benefit, low. The Exchange states it is changing the criteria for earning daily LMM incentives but is not changing the dollar amounts of the daily incentives in the fee schedule. That means the existing incentive payment levels will remain the same under the proposed rule change.
- Memorialized Standards Aim to Improve Market Quality: benefit, medium. The Exchange says memorializing detailed, asset-class based LMM standards in the fee schedule will increase transparency and is intended to enhance market quality and protect investors. The standards include six asset-class categories and CADV‑based application of NBBO time requirements.

## Related documents

- [2026-20466](https://policyrisk.com/federal-register/2026-20466): Adviser and Regulated Fund Custody Rules; Crypto Custody Rules, 2026-10-06
- [2026-19260](https://policyrisk.com/federal-register/2026-19260): Rescission of Rule 14a-8's Federal Regulation of Shareholder Proposals and Amendments to Rule 14a-4, 2026-09-21
- [2026-18424](https://policyrisk.com/federal-register/2026-18424): Political Contributions by Certain Investment Advisers, 2026-09-10
- [2026-18190](https://policyrisk.com/federal-register/2026-18190): Transfer Agent Rules, 2026-09-04
- [2026-17183](https://policyrisk.com/federal-register/2026-17183): Regulation Crypto Assets, 2026-08-21
- [2026-12163](https://policyrisk.com/federal-register/2026-12163): The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS, 2026-06-17

## Sources
- [2025-23816 on federalregister.gov](https://www.federalregister.gov/documents/2025/12/29/2025-23816/self-regulatory-organizations-cboe-bzx-exchange-inc-notice-of-filing-and-immediate-effectiveness-of)
- [2025-23816 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2025-12-29/pdf/2025-23816.pdf)

## Related
- [Previous: 2025-23815, Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate…](https://policyrisk.com/federal-register/2025-23815)
- [Next: 2025-23817, Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate…](https://policyrisk.com/federal-register/2025-23817)
- [All Federal Register documents](https://policyrisk.com/federal-register)

Source: PRIA, https://policyrisk.com/federal-register/2025-23816 (as of 2026-06-08).