Cboe Plans to Introduce New Lead Market Maker Incentive Program

Cboe Global Markets, Inc. 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 LMM program aims to provide a better 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 daily. 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.