CHICAGO, Jan. 25, 2021 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), a market operator and global trading
solutions provider, today announced plans to introduce a new
incentive program that aims to help further enhance market quality
for primarily listed exchange-traded products (ETPs) on Cboe BZX
Exchange, beginning Monday, February
1, subject to regulatory review.
Previously, Cboe had offered the market's first-of-its-kind
incentive program that awarded lead market makers (LMMs) a flat
daily fee, rather than payment based on assigned ETPs' transaction
volume, to help incentivize LMMs to provide liquidity in newly
launched or thinly traded ETPs. Following extensive consultation
with ETP industry participants, Cboe plans to offer an enhanced
incentive program that builds upon the success of its previous
program and provides LMMs with additional flexibility and choice in
selecting the incentive model that best suits their needs.
Under the new incentive program, expected to be effective
Monday, February 1, subjective to
regulatory review, Cboe plans to allow LMMs on its BZX Exchange to
select between two incentive models on a symbol by symbol basis
each month. LMMs are expected to be able to opt-in to an outsized
rebate per share from the default current flat dollar stipend for
ETPs that have a consolidated average daily volume of 1,000,000
shares or greater.
Laura Morrison, Senior Vice
President and Global Head of Listings at Cboe, said: "We have
received extremely positive industry feedback on our LMM incentive
offerings, and based on further dialogue with our family of issuers
and market makers, we are pleased to enhance our incentive program
in an effort to help provide deeper liquidity for listed ETPs.
Designed to benefit all market participants, our new incentive
program will offer LMMs greater choice and flexibility to support
trading in issuers' ETPs, which we believe will result in better
market quality for investors."
Cboe BZX Exchange offers some of the most stringent LMM quoting
obligations and competitive incentives available on the market,
designed to narrow spreads and bolster liquidity across the ETP
ecosystem. Cboe believes that this focus on market quality has
helped Cboe BZX Exchange capture 36% of all new ETP launches in the
market in 2020.
As the 2nd largest primary listings exchange for ETPs
in the U.S., as of January 22, 2020,
Cboe BZX Exchange is home to more than 440 ETPs, representing
approximately $400 billion in total
assets under management from more than 50 unique issuers. In
Europe, Cboe lists more than 70
ETPs from nine unique issuers. For additional information on the
Cboe Listed Marketplace, visit CboeListings.com.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE) provides cutting-edge trading
and investment solutions to market participants around the world.
The company is committed to defining markets through product
innovation, leading edge technology and seamless trading
solutions.
The company offers trading across a diverse range of products in
multiple asset classes and geographies, including options, futures,
U.S., Canadian and European equities, exchange-traded products
(ETPs), global foreign exchange (FX) and volatility products based
on the Cboe Volatility Index® (VIX® Index), recognized as
the world's premier gauge of U.S. equity market volatility.
Cboe's subsidiaries include the largest options exchange and the
third largest stock exchange operator in the U.S. In addition, the
company operates one of the largest stock exchanges by value traded
in Europe, and owns EuroCCP, a
leading pan-European equities clearing house. Cboe also is a
leading market globally for ETP listings and
trading.
The company is headquartered in Chicago with a network of domestic and global
offices across the Americas, Europe and Asia, including main hubs in New York, London, Kansas
City and Amsterdam. For
more information, visit www.cboe.com.
Media
Contacts
|
Analyst
Contact
|
Angela
Tu
|
Tim
Cave
|
Debbie
Koopman
|
+1-646-856-8734
|
+44 (0)
7593-506-719
|
+1-312-786-7136
|
atu@cboe.com
|
tcave@cboe.com
|
dkoopman@cboe.com
|
CBOE-E
CBOE-OE
Cboe®, Cboe Volatility Index®, Cboe Global Markets®,
BZX®, and VIX® are registered trademarks of Cboe Exchange,
Inc. All other trademarks and service marks are the property
of their respective owners.
Cautionary Statements Regarding Forward-Looking
Information
Certain information contained in this press
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.
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SOURCE Cboe Global Markets, Inc.