2026-12032NoticeWallet

Exchange Tweaks Rebates for Lead Market Makers

Published Date: 6/16/2026

Notice

Summary

Cboe BZX Exchange is changing its fee schedule to adjust the rebates paid to Lead Market Makers (LMMs) for trading certain exchange-traded products (ETPs). This update affects traders who act as LMMs by tweaking how much money they earn back as incentives. The new fees kicked in right away on June 11, 2026, aiming to keep the market lively and fair.

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Volume-based rebates by CADV band

If you serve as a Lead Market Maker (LMM) on BZX-listed ETPs, rebates will be paid based on each security's consolidated average daily volume (CADV) for the prior month and only if you meet the Base or Enhanced Minimum Performance Standards for at least 75% of trading days you were assigned the security. Per-share rebates apply for higher-volume bands (for example, CADV >1,000,000: Base $0.0034 and Enhanced $0.0036 per share; CADV 500,001–1,000,000: Base $0.0040 and Enhanced $0.0042 per share) and per-symbol stipends apply for lower-volume bands (for example, CADV 50,001–100,000: Base $400 and Enhanced $650 per symbol; CADV ≤25,000: Base $450 and Enhanced $700 per symbol).

Low-CADV monthly stipend for small symbols

For each ETP LMM security with a CADV of 1,000,000 shares or fewer, an LMM can receive a $200 monthly stipend per security if the LMM is registered on at least 15% of the Exchange's Low CADV ETP Securities and met the Base or Enhanced Minimum Performance Standards in the previous month for at least 75% of its assigned Low CADV securities.

Incremental add rebates tied to breadth

If you meet the performance standards for your assigned ETP LMM securities for at least 75% of trading days, you can earn additional Tape B displayed add rebates depending on how many BZX-listed symbols you are assigned. Members with assignments representing at least 10% of total BZX-listed symbols receive an extra $0.0006 per share; at least 7.5% receive $0.0005; at least 5.0% receive $0.0004; and at least 2.5% receive $0.0003 per share.

New-listing first-month stipend and timing

For newly listed symbols in their first month of trading, the ETP LMM is eligible for a Base Rate stipend of $450 per symbol pro-rated by the number of trading days the security traded that month. The Exchange adopted these changes with advance notice effective June 1, 2026 and expects formal implementation of the new payout structure on July 1, 2026; prior-month volume determines payouts (for example, June volume determines July payouts).

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Key Dates

Effective Date
Published Date
6/1/2026
6/16/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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