Long-Term Stock Exchange Modifies Fees to Boost Trading Liquidity Incentives
Published Date: 1/28/2026
Notice
Summary
The Long-Term Stock Exchange (LTSE) is updating its fee schedule to improve its Liquidity Incentive Program starting January 12, 2026. This change encourages traders to offer better prices and more trading activity, helping the market run smoother. Traders and members using LTSE will see these new incentives right away, aiming to boost liquidity and market quality.
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Monthly Eligibility and Payouts for LIP
If you are an LTSE Member, the eligibility period for Incentive #1 and Incentive #3 changes from a calendar quarter to a calendar month starting January 12, 2026. That means the 30% NBBO quoting requirement for Incentive #1 and the 50-LIP-Enhanced-Security plus 25% NBBO quoting requirement for Incentive #3 are evaluated monthly instead of quarterly, and qualifying Members will receive their proportional share of LTSE SIP Quote Revenue on a monthly basis.
Optional Credit Changed to $25 Monthly
For Incentive #3, the optional credit for LIP Standard Securities per Market Participant ID (MPID) changes from a quarterly credit of $75 per LIP Standard Security per MPID to a monthly credit of $25 per LIP Standard Security per MPID, effective January 12, 2026. Members who meet the quoting thresholds may elect the monthly $25 credit to be used against fees for removing liquidity.
MQS Publication and Monthly Resets
The Minimum Quoted Size (MQS) for each LIP Enhanced Security will be calculated and published monthly on the Exchange's website instead of at least quarterly, and all quoting requirements and incentives will reset each calendar month rather than each calendar quarter, effective January 12, 2026. The Exchange will no longer apply the prior mid-quarter MQS adjustment language.
Exchange Says Investors May See Tighter Spreads
The Exchange states that by allowing monthly qualification and incentives it expects to encourage quoting at the National Best Bid and Offer (NBBO), which it believes could tighten bid-ask spreads and increase displayed liquidity, thereby benefiting investors by deepening LTSE's liquidity pool and supporting price discovery. The Exchange includes these expected market-quality benefits as part of its rationale for the January 12, 2026 changes.
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