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Cboe Plans to Introduce New Lead Market Maker Incentive Program for its Cboe Listed ETP Marketplace
-Cboe continues to innovate with a new Lead Market Maker Incentive Program that incorporates enhanced market quality requirements
-Lead Market Makers on the Cboe Listed Marketplace planned to be rewarded for meeting certain quoting obligations and market quality metrics for Cboe-listed ETPs -New program planned to become effective in the third quarter of 2019, subject to regulatory review CHICAGO, June 14, 2019 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), one of the world's largest exchange holding companies, today announced it plans to introduce a new Lead Market Maker (LMM) incentive program with enhanced market quality requirements on its Cboe Listed Marketplace for exchange traded products (ETPs).
The proposed new LMM program aims to provide a superior trading experience for issuers and investors by incenting Lead Market Makers to demonstrably enhance market quality in the form of tighter markets and deeper liquidity for Cboe-listed ETPs. Under the planned program, LMMs that meet certain quoting obligations and market quality requirements would receive daily incentives based on the number of Cboe-listed products for which they are an LMM, and the aggregate auction volume of those products. LMMs would potentially receive $10-$200 per product for which they meet the standard requirements, and $12.50-$250 per product for which they meet enhanced market quality requirements on a daily basis. "We endeavor to provide the best markets and deepest liquidity for exchange traded products listed on Cboe's ETP marketplace," said Laura Morrison, Senior Vice President, Global Head of Listings at Cboe. "Our proposed new and innovative LMM program expands upon our previous program, which we believe will foster even greater market maker engagement, particularly in newly launched and less actively traded products." As a leading listing venue for ETPs, Cboe has been first-to-market with several innovations to enhance market quality and depth of liquidity for ETPs listed and traded on its marketplace. The previous rewards-based program for LMMs, launched in 2015, offered outsized rebates and notably was the industry's first incentive program to implement a depth of book requirement. Cboe also introduced its Liquidity Management Provider Program in 2017, another innovation to encourage additional quoting activity during continuous trading and therefore promote increased liquidity in issuer sponsored securities. The new LMM program is planned to begin in the third quarter of 2019, subject to regulatory review, and will replace Cboe's current LMM program. "We are continually seeking innovative ways to define markets that benefit issuers and investors. Our new program will essentially transform our rebate model from one that is payment for executed volume to one that is payment for market quality. We expect this to align the interests of market makers and issuer clients, and improve the overall trading environment for investors and all participants in our marketplace," said Morrison. Cboe has more than 320 ETPs from over 50 issuers listed on its Cboe Listed Marketplace. Further information on Cboe's new LMM Program is available at CboeListings.com. About Cboe Global Markets, Inc. Cboe Global Markets, Inc. (Cboe: CBOE) is one of the world's largest exchange holding companies, offering cutting-edge trading and investment solutions to investors around the world. The company is committed to relentless innovation, connecting global markets with world-class technology and providing seamless solutions that enhance the customer experience. Cboe offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S. and European equities, exchange-traded products (ETPs), global foreign exchange (FX) and multi-asset volatility products based on the Cboe Volatility Index (VIX Index), the world's barometer for equity market volatility. Cboe's trading venues include the largest options exchange in the U.S. and the largest stock exchange by value traded in Europe. In addition, the company is one of the largest stock exchange operators in the U.S. and is a leading market globally for ETP trading. The company is headquartered in Chicago with offices in Kansas City, New York, London, Amsterdam, San Francisco, Singapore, Hong Kong and Quito, Ecuador. For more information, visit www.cboe.com.
CBOE-OE Cboe®, Cboe Volatility Index® and VIX® are registered trademarks and Cboe Global MarketsSMand Cboe Futures ExchangeSM are service marks of Cboe Exchange, Inc. All other trademarks and service marks are the property of their respective owners. Forward-Looking Statements Certain information contained in this news release may constitute forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made and are subject to a number of risks and uncertainties.
SOURCE Cboe Global Markets, Inc.  |
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