Cboe Lead Market Maker Program
The Cboe Lead Market Maker (LMM) Program is a rewards-based program that aims to provide a superior trading experience for issuers and investors by incenting Lead Market Makers to demonstrably enhance market quality in the form of tighter markets and deeper liquidity for Cboe-listed ETPs.
Base Payment
Average Aggregate Daily Auction Volume in LMM Assigned ETPs
| 0-10,000 | 10,001-100,000 | 100,001-500,000 | 500,001-1,000,000 | 1,000,001 or greater | |
|---|---|---|---|---|---|
| Daily Incentive for each Qualified Security 1-5 | $10 | $25 | $40 | $50 | $100 |
| Daily Incentive for each Qualified Security 6-25 | $10 | $25 | $25 | $30 | $70 |
| Daily Incentive for each Qualified Security 26-50 | $10 | $10 | $20 | $25 | $50 |
| Daily Incentive for each Qualified Security 51-100 | $10 | $10 | $15 | $20 | $25 |
| Daily Incentive for each Qualified Security Greater Than 100 | $10 | $10 | $15 | $15 | $20 |
Enhanced Payment
LMMs will receive the following rates on a daily basis per Qualified ETP for which they also meet certain enhanced market quality standards in addition to the Base Payment above:
Average Aggregate Daily Auction Volume in LMM Assigned ETPs
| 0-10,000 | 10,001-100,000 | 100,001-500,000 | 500,001-1,000,000 | 1,000,001 or greater | |
|---|---|---|---|---|---|
| Daily Incentive for each Enhanced Security 1-5 | $3 | $7.50 | $12 | $15 | $30 |
| Daily Incentive for each Enhanced Security 6-25 | $3 | $7.50 | $7.50 | $9 | $21 |
| Daily Incentive for each Enhanced Security 26-50 | $3 | $3 | $6 | $7.50 | $15 |
| Daily Incentive for each Enhanced Security 51-100 | $3 | $3 | $4.50 | $6 | $7.50 |
| Daily Incentive for each Enhanced Security Greater Than 100 | $3 | $3 | $4.50 | $4.50 | $6 |
LMM Add Volume Tier
| Tier | Incremental Rebate |
|---|---|
|
LMM Add Volume Tier
1. Member adds an ADV ≥ 0.20% of the TCV;2. Member has an Average Aggregate Daily Auction Volume in LMM Securities ≥ 500,000; 3. Member is enrolled in at least 75 LMM Securities |
($0.0001) |
LMMs in Cboe listed securities will transact for free in the Closing Auction in assigned ETPs
Applications
For further information regarding LMM securities in the program or the LMM program more generally, contact [email protected]
LMM Securities
Visit our LMM Securities page for a complete list of securities in the LMM program, including LMMs on the ETP, the date it entered the program and issuing company.
* See the Cboe BZX Exchange Rule Book for Market Maker requirements.