Cboe Listed

Cboe Lead Market Maker Program

The Cboe Lead Market Maker (LMM) Program is a rewards-based program that incentivizes Market Makers* based on their participation in Cboe-listed ETPs. As an LMM on Cboe, a firm is the exclusive Market Maker for that ETP. LMMs are rewarded for their participation through two pricing initiatives.

Cboe first rewards LMMs with outsized rebates for executed liquidity and reduced fees for removing liquidity in their registered ETPs. And, no fees are charged in the closing auction.

LMM Incentive Pricing Schedules

CADV Range Add Rebate Take Fee Closing Auction Fee
< 1MM $(0.0045) $0.0025 Free
1 - 5MM $(0.0040) $0.0025 Free
5MM+ $(0.0035) $0.0025 Free

Secondly, our LMMs are rewarded with an incremental rebate per share above their standard equity pricing for adding displayed liquidity on the Cboe BZX Exchange in all Tapes A, B, and C securities.

This incremental rebate is based on the total number of ETPs assigned to the LMM for the month. LMMs earn one “credit” for each ETP to which they are assigned, no matter the ETP’s size. The total number of credits is calculated monthly, and the LMMs receive the incremental rebate as shown in the table below.

For example, if an LMM has 170 ETPs assigned to them, their incremental rebate over the standard equity pricing would be $.0008 per share for tape B securities, and $.0004 per share for tapes A and C securities.

LMM Credit Tiers

Tiers 1 2 3 4
Minimum Number of Assigned ETPs as LMM 25 50 75 125
Incremental Tape A Rebate $(0.0001) $(0.0002) $(0.0003) $(0.0004)
Incremental Tape B Rebate $(0.0002) $(0.0004) $(0.0006) $(0.0008)
Incremental Tape C Rebate $(0.0001) $(0.0002) $(0.0003) $(0.0004)

For LMM assignments that change intra month, LMMs will receive credits on a pro-rata basis. For example, if an LMM is registered for 85 Cboe-listed ETPs at the beginning of the month and assumes the LMM role for 50 more listings on the 10th trading day of the month (out of 20 total trading days), the LMM will be rewarded a total of 110 credits for the month: 85 + (50 x 10/20) = 110. The LMM would qualify for an incremental rebate of $.0006 per share for adding displayed liquidity in Tape B securities, $.0003 per share for adding displayed liquidity in Tapes A and C securities on BZX during that month.


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.