Cboe BZX Exchange amends fee schedule, adds MPID Tier 3, removes Step-Up Tier 2
Effective August 3, 2026, the fee schedule change modifies rebates and fees for BZX Equities members, adding a Single MPID Investor Tier 3 and removing Step-Up Tier 2 and rates.
On August 12, 2026 the Securities and Exchange Commission published a notice that Cboe BZX Exchange, Inc. filed a proposed rule change on August 3, 2026 (Release No. 34-106083; File No. SR-CboeBZX-2026-063). The filing appears in Federal Register Volume 91, Number 157, pages 53307-53311, and solicits public comment on the amendment to the Exchange's fee schedule.
The amendment proposes three substantive changes: (i) the removal of Step-Up Tier 2 and its associated definitions; (ii) the adoption of a new Single MPID Investor Tier 3; and (iii) the removal of the ETP and Closed-End Fund LMM Liquidity Provision Rates that expired on June 30, 2026. The Exchange states the changes are effective August 3, 2026.
Under the current schedule, the Exchange provides a standard rebate of $0.00160 per share for add-liquidity orders in securities priced at or above $1.00 and assesses a fee of $0.0030 per share for remove-liquidity orders. For securities priced below $1.00, no rebate is offered and a fee of 0.30% of the total dollar value is assessed. The proposed Single MPID Investor Tier 3 would raise the rebate to $0.0032 per share for qualifying orders (fee codes B, V, or Y) when the MPID's average daily added volume as a percentage of total consolidated volume is at least 0.45% (or the ex-subdollar equivalent) and the MPID's Tape C average daily volume as a percentage of Tape C total consolidated volume is at least 0.60% (or the ex-subdollar equivalent).
The Exchange notes that the equities market is highly competitive, with 17 registered equities exchanges and no single exchange holding more than 15% of market share. Operating a maker-taker model, the Exchange argues that eliminating Step-Up Tier 2 allows resources to be redirected to other incentive programs while maintaining a low-concentration environment that limits pricing power.
Comments on the proposal may be submitted to the Commission in accordance with Rule 19b-4. The proposed rule text and supporting statements are available on the SEC website, the Exchange's website, and at the Exchange's principal office.