Cboe BZX Equities Introduces Single Stock ETF Liquidity Enhancement Program
Overview
Applicable Cboe Exchanges: BZX Equities
Effective immediately, Cboe BZX Equities (BZX) is introducing a new Liquidity Enhancement Program in Single-Stock ETFs (LEP Securities) which includes all Cboe-listed Single-Stock ETFs, including options based ETFs in a single underlying equity security
Technical Details
Effective immediately, the Liquidity Enhancement Program (LEP) is available as described below:
| Tier | Fee Code | Rebate per Share | ETP Enrollment |
|---|---|---|---|
| LEP Tier 1 | B | ($0.0025) | Member is enrolled in at least 5 BZX-listed LEP Securities for which it meets the below criteria for at least 75% of the trading days in the applicable month. |
Requirements:
- Member is at the NBBO at least 20% of the time throughout Regular Trading Hours (RTH); and
- Member displays a notional depth of $75,000, within $0.05 of the NBB and NBO, for at least 90% of RTH; and
- The NBBO spread is less than 0.50 basis points for at least 95% of RTH.
A new "SSE Liquidity Enhancement Provider” tool is available in the Cboe Customer Web Portal for liquidity providers to view and manage current and future Single-Stock ETF Liquidity Enhancement Provider appointments. The “BZX SSE Liquidity Enhancement Provider” entitlement is required to use this new tool.
Any BZX Member is eligible to enroll as a Liquidity Enhancement Provider by completing this enrollment form.
ADDITIONAL INFORMATION
Please contact the Cboe Trade Desk for support or with any questions.
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