Cboe BZX Adds Step-Up Tier 1 Rebate to Fee Schedule Effective Oct 1
Cboe BZX members can earn a $0.0028-per-share rebate on qualifying add-liquidity orders starting Oct. 1, 2026.
On October 8, 2026, Cboe BZX Exchange, Inc. filed a proposed rule change with the Securities and Exchange Commission (Release No. 34-106640; File No. SR-CboeBZX-2026-084) to amend its Fee Schedule. The filing, published in the Federal Register on October 14, 2026, states that the amendment is effective immediately, on October 1, 2026.
The amendment designates footnote 2 of the Fee Schedule as "Step-Up Tiers" and introduces Step-Up Tier 1. Qualified members will receive a rebate of $0.0028 per share on orders that add liquidity and generate fee codes B, V, or Y, provided the member meets two criteria: (1) a Step-Up Add TCV or an Ex-Subdollar Step-Up Add Ex-Subdollar TCV of at least 0.08% for September 2026, and (2) a CMC ADV of 300,000 that yields fee code MC. The tier will expire no later than February 28, 2027, and the expiration date will be indicated on the Exchange's Fee Schedule.
The Exchange currently offers a maker-taker model with a standard rebate of $0.00160 per share for securities priced at or above $1.00 and a fee of $0.0030 per share for removing liquidity. For securities priced below $1.00, the Exchange assesses a fee of 0.30% of the total dollar value and provides no rebate. Tiered pricing already allows members to qualify for higher rebates or reduced fees when volume thresholds are met; Step-Up Tier 1 adds an additional incentive for volume growth.
In its statement of purpose, the Exchange notes that no single registered equities exchange holds more than 15% of market share among the 17 registered equities exchanges, indicating a highly competitive environment. The proposed Step-Up Tier 1 is intended to encourage members to increase order flow, deepen liquidity, and enhance price discovery, thereby benefiting all market participants.
The Exchange asserts that the rule change complies with Section 6(b) of the Securities Exchange Act of 1934, including the requirements to promote just and equitable principles of trade, prevent fraudulent practices, and allocate reasonable fees among members.
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