Cboe North American Equities Update

Valued Customers,

As you know, beginning November 1, Cboe will transition the EDGA® Equities Exchange from an inverted venue to a maker-taker venue. I am excited to share that in addition to this change, we will also be implementing a high rebate, tier-free pricing model.

I wanted to share more about our decision to implement these changes ahead of their implementation next month. First and foremost, across the industry, the market share for inverted markets has shrunk dramatically in recent years. We determined we could better serve the market by providing another maker-taker venue and focusing our inverted strategy on just one exchange, BYX Equities.

Additionally, extensive conversations with customers, including many of you, made it clear there is a need for an equities exchange with a no-tier pricing model. We strongly believe customer choice is key to a healthy market. Volume- based rebates are an important tool for exchanges as they help spur competition and lower costs, however, different pricing models work for different types of market participants, and EDGA will now be able to support a wide variety of customers. Most importantly, we believe the market can support multiple market models simultaneously, enhancing accessibility across the board by catering to different segments.

We envision EDGA’s simpler pricing model attracting firms who are attracted to a simpler market model. Most importantly, we expect these changes to make EDGA an exchange with faster fill rates, more stable quotes and simpler workflow.

As always, we will strive to be transparent with you through these changes. Our North American Equities Execution Consulting team will be analyzing the market following this transition and we will share their findings after a few months. If you have questions, please contact me or a member of our team.

Thank you for your continued partnership,

Oliver Sung
Vice President, Head of North American Equities
Cboe Global Markets