18 Aug 2025
📈Cboe Updates Lead Market-Maker Incentive Programs
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Certain Lead Market-Maker (“LMM”) Incentive Programs by Increasing or Decreasing Quote Width and Size Requirements, and Increasing or Decreasing Rebate Amounts, as Applicable, and To Amend the Fees Schedule To Include Further Clarifying Information Regarding the Operation of Its LMM Incentive Programs
Summary
Cboe Exchange has announced proposed amendments to its Lead Market-Maker (LMM) incentive programs. The changes include adjustments to quote width, size requirements, and rebate amounts, aiming to enhance liquidity and market quality in various trading sessions. This proposal is open for public commentary and aims to clarify the operational functioning of LMM programs.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The regulatory change by Cboe Exchange affects Lead Market-Maker (LMM) incentive programs, potentially influencing trading strategies and liquidity provision. This directly impacts business owners and executives involved in trading activities, as it adjusts rebate amounts and quoting standards, which can affect earnings and operational decisions.