17 Apr 2025
📈Cboe EDGA Exchange Launches NBBO Setter Program for Market Quality
Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule by Introducing an NBBO Setter Program Under Proposed New Fee Code SS and Introducing a Definitions Section to the Fee Schedule
Summary
The Cboe EDGA Exchange has proposed a rule change to amend its Fee Schedule by introducing an NBBO Setter Program aimed at enhancing market quality in illiquid securities. This program features new fee code SS and a Definitions section for clarity, offering rebates to traders who set a better National Best Bid and Offer (NBBO). It emphasizes the need for competitive pricing in a dynamic market environment.
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The proposed NBBO Setter Program introduces a new fee structure that incentivizes increased order flow and liquidity in specified securities, impacting trading costs and opportunities for businesses utilizing the exchange. The higher rebates could influence trading strategies for financial institutions.