Global Markets
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The Cboe Europe Equities (Cboe) Liquidity Provider Program (LPP) and Liquidity Provider Scheme (LPS) have been designed to ensure deep liquidity in securities traded on the Cboe Europe Equities (Cboe) integrated order books. Registered Liquidity Providers post and maintain continuous bid and ask prices for their chosen securities, subject to certain commitments as set out below.
Cboe offers four Liquidity Provider Programs, under which all traded symbols are eligible for participation. Cboe has four Liquidity Provider Programs. Participants may elect to enroll in one or more of these programs. Participants can choose to participate for one or more of these programs. Participants must post and maintain executable quotes on the integrated order book(s) for the chosen securities and complying with the time, size and price requirements, as set out in the table below:
| Required Size * | Specified Price % | Required Time | Required Market Share | |
|---|---|---|---|---|
| Program 1 | €5,000 | 0.25% | 80% | n/a |
| Program 2 | €5,000 | As per LPP commitment | 95% | n/a |
| Program 3 | None | 2% | 50% | n/a |
| Program 4* | €5,000 | As per LPP commitment | 95% | 0.5% |
Program 4 is applicable to the DXE environment only
| Symbol Name | Symbol | ISIN | Currency | Cboe Venue | Qualifying Date |
|---|---|---|---|---|---|
**A security available for trading on Cboe NL and specifically identified as eligible for LPP1 stipend credit payments as per the Cboe NL Trading price list criteria.
Cboe has three commercial Lliquidity Provider Schemes designed to promote and reward liquidity provision along with the setting of competitive prices as set out below:
LPS relates to added executions on the CXE/DXE Lit Order Book. All participants will be automatically enrolled into the LPS monitoring however participants wishing to opt out must request it via email to their Sales Account Manager. LPS applies only to those securities that participants are active in. Participants must achieve a minimum average 0.5% passive market share of the total passive value traded on the CXE/DXE lit order book in those securities over a month in order to be eligible. Participants that achieve the minimum LPS obligations will qualify for a rebate based upon the total notional value of added executions in their active securities.
A-LPS is an innovative pricing model that rewards participants for setting the Best Bid or Offer (BBO) on the Cboe CXE/DXE Lit Order Book. A-LPS applies to qualifying symbols identified in the Cboe reference data files and allows participant orders that set a new price level of a qualifying minimum size on the CXE/DXE Lit Order Book to be eligible for an additional rebate on top of the standard rebate.
RA-LPS scheme has been designed to support Cboe’s retail offering with participants able to register for one or more of the following groups. Participants submitting RLP orders will be monitored against the below group criteria
| RA-LPS Group | REQUIRED SIZE | Price Requirement | Required Time (per month) | Minimum no. of symbols per group |
|---|---|---|---|---|
| BlueChip | €5,000 | EBBO or Better | 85% | 85% |
| Midcap | €4,000 | EBBO or Better | 80% | 60% |
| Smallcap | €3,000 | EBBO or Better | 75% | 40% |
| Exchange Traded Products (ETPs) | €5,000 | EBBO or Better | 80% | 40% |
Only direct trading Participants of Cboe are eligible to become registered liquidity providers. The three step process for Participants is:
Further details of the LPP can be found in the Participant Manual.
Participants who are interested in the LPP and would like to become a registered liquidity provider should review the following documents:
