CBOE Proposes Rule Change Relating to Order Router Subsidy Program


On January 3, the Securities and Exchange Commission published a notice of a proposed rule change submitted by the Chicago Board Options Exchange (CBOE). CBOE currently makes subsidy payments to CBOE Trading Permit Holders (TPHs) that provide “certain order routing functionalities” to other CBOE TPHs and/or use such functionalities themselves. These payments are meant to subsidize the participating CBOE TPHs’ costs of providing such order routing functionalities to other CBOE TPHs.

CBOE proposes to extend its current subsidy program to (1) enable CBOE to establish subsidy arrangements with broker-dealers that are not CBOE TPHs (Non-CBOE TPHs), and (2) extend the program to permit both CBOE TPHs and Non-CBOE TPHs to collect subsidy payments for providing such order routing functionalities to Non-CBOE TPHs.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Katten Muchin Rosenman LLP | Attorney Advertising

Written by:


Katten Muchin Rosenman LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.