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.
Media
Contacts
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Analyst
Contact
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Suzanne
Cosgrove
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Angela
Tu
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Stacie
Fleming
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Debbie
Koopman
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+1-312-786-7123
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+1-646-856-8734
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+44-20-7012-8950
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+1-312-786-7136
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scosgrove@cboe.com
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atu@cboe.com
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sfleming@cboe.com
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dkoopman@cboe.com
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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.
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SOURCE Cboe Global Markets, Inc.