Cboe BZX Tweaks LMP Fee Discount Rules for Traders
Published Date: 4/15/2026
Notice
Summary
Cboe BZX Exchange is updating the rules for its LMP Tiers 1 and 2 fee discounts starting April 1, 2026. This change affects traders who qualify for these fee levels by adjusting how they earn discounts, helping keep the Exchange competitive. If you trade on BZX, watch for these new criteria to see how your fees might change!
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
LMP Tier Criteria Revised; NBBO Size Time Removed
Starting April 1, 2026, BZX is changing the LMP Tier 1 and Tier 2 criteria by removing the NBBO Size Time requirement. Tier 1 still pays an additive rebate of $0.0001 per share and requires enrollment in at least 50 BZX-listed LMP Securities; Tier 2 still pays $0.0002 per share and requires enrollment in at least 100 BZX-listed LMP Securities plus adding a Tape B ADV >= 1.50% of Tape B TCV. Both tiers require NBBO Time >= 15% and Displayed Size Time >= 90% for at least 50% of trading days, and apply only to orders yielding fee code B in securities priced at or above $1.00.
NBBO Time Definition Narrowed to 1 Round Lot
The Exchange proposes to change the NBBO Time definition so that NBBO Time means the percentage of time during regular trading hours a Member maintains at least one round lot at each of the national best bid or offer (NBB or NBO), replacing the prior definition requiring at least 100 shares at each of the NBB and NBO. This change is part of the LMP Tier amendments effective April 1, 2026.
Exchange Expectation: Few Members Will Qualify
Based on the prior month's volume, the Exchange expects that at least seven Members will be able to satisfy the proposed LMP Tier 1 criteria and that no Members will satisfy the proposed LMP Tier 2 criteria. If a Member does not meet the new criteria, the Member will simply not receive the corresponding additive rebate.
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
2026-07651 — 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, because changes could affect how audits are done and funded.
2026-09742 — Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule To Adopt a New Fee Code for Market-Maker Complex Orders Executed on the Complex Order Book That Add Liquidity in Penny Program Securities and To Amend Its Orders Submitted With a Designated Give Up Program
Starting May 1, 2026, Cboe BZX Exchange is updating its fees to add a new code for Market-Maker Complex orders that add liquidity in penny stocks. They’re also tweaking rules for orders using a special Give Up program. These changes mainly affect market makers and traders using complex orders, aiming to make fees clearer and trading smoother.
2026-09745 — Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Fees for Industry Members Related to Reasonably Budgeted CAT Costs of the National Market System Plan Governing the Consolidated Audit Trail for May 1, 2026 Through December 31, 2026
Starting May 1, 2026, MEMX is charging industry members a tiny fee of $0.000001 per share to help cover the costs of the Consolidated Audit Trail (CAT) system through the end of the year. This fee supports tracking stock trades better and will show up on invoices starting June 2026. If you’re a broker or part of the trading world, get ready to chip in for smoother market oversight!
2026-09728 — Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Fees for Industry Members Related to Certain Historical Costs of the National Market System Plan Concerning the Consolidated Audit Trail
MEMX is setting new fees for industry members to cover leftover historical costs from the National Market System’s Consolidated Audit Trail, which tracks stock trades. These fees, called Historical CAT Assessment 1A, will collect about $39 million that wasn’t billed before. The change is effective immediately, so affected members should get ready to pay soon!
2026-09736 — Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Fees Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail
Nasdaq PHLX is setting new fees for industry members to cover leftover historical costs from the National Market System Plan for the Consolidated Audit Trail. These fees, called Historical CAT Assessment 1A, will collect about $39 million for costs before 2022 that weren’t billed before. The fees start right away and will be charged per share traded, helping keep the audit trail running smoothly.
2026-09734 — Self-Regulatory Organizations; Nasdaq Texas, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Fees Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail
Nasdaq Texas is setting new fees to cover leftover historical costs from the National Market System Plan for the Consolidated Audit Trail. Industry members who trade on the exchange will pay these fees starting soon to help cover about $39 million in past expenses not yet billed. This update keeps the system fair and funded without surprises!
Previous / Next Documents
Previous: 2026-07260 — Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment to the National Market System Plan Governing the Consolidated Audit Trail Regarding Conversion and Name Change of Nasdaq BX, Inc. to Nasdaq Texas, LLC
Nasdaq BX, Inc. is changing its name to Nasdaq Texas, LLC and switching from a Delaware corporation to a Texas limited liability company. This update affects all participants in the Consolidated Audit Trail system, which tracks stock trades. The change is official as of April 1, 2026, and won’t cost anyone extra but keeps everything running smoothly under the new name.
Next: 2026-07262 — Self-Regulatory Organizations: Long-Term Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Exchange Rule 14.602, To Extend the Duration of Certain Term-Limited Complimentary Products and Services
The Long-Term Stock Exchange (LTSE) is extending the free products and services it offers to companies from 4 years to 5 years. This change helps current and new companies listed on LTSE get more time to enjoy these perks without extra cost. The update is effective immediately, so companies can start benefiting right away!