The Cboe Exchange Traded Fund (ETF) and Exchange Traded Product (ETP) strategy seeks to provide issuers and the market with products and services designed to reduce costs and risks and open up new trading opportunities. Cboe’s competitive offering to issuers will focus on liquidity, better execution and transparency:
Cboe makes available three incentive schemes to attract liquidity providers and order flow:
- Maker/Taker pricing
- Issuers can sponsor either a Competitive Liquidity Provider (CLP) program, or a traditional designated market maker model, and
- Cboe can rebate a significant proportion of its revenue from ETF/ETP trading to its Participants, subject to pricing and issuer incentive schemes
Cboe will closely monitor quoting and trading behaviour and provide issuers with comprehensive analytics related to the quality of their order books e.g. liquidity provider performance, depth and spread data and comparisons with the competing venues.
Better Execution and Transparency
Cboe’s order books more often provide the tightest bid/offer spread. To help concentrate liquidity, Cboe will make its Smart Order Routing capabilities available to eligible brokers and dealers to encourage order routing to Cboe in order that they can achieve best price executions for their clients. Cboe’s rules will require firms to report their OTC trades in its listed ETFs through our own or another trade reporting service.
Please review our Cboe Listing Service Description for a more detailed overview of our listing service.