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Cboe to Introduce New Lead Market Maker Incentive Program

Cboe Global Markets, Inc. announced that 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. 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.

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