20 May 2025
💸Cboe Introduces Excessive Mass Cancel and Purge Fee for Market Makers
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Implement an Excessive Mass Cancel and Purge Fee for SPXW
Summary
The Cboe Exchange proposes a new fee structure targeting excessive mass cancellation and purge activity among Market Makers trading SPXW options. This initiative aims to promote efficient use of exchange resources, deter disruptive trading behaviors, and ensure fair access to market systems. The planned fees are tiered based on activity levels, reflecting the goal of reducing strain on system capacity.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule change introduces an Excessive Mass Cancel and Purge Fee for Market Makers, potentially increasing operational costs for businesses involved in trading SPXW options. This could necessitate adjustments in trading strategies and compliance with new regulations.