Effective Tuesday, August 1, 2023, MEMX will be implementing the following changes to transaction fees, subject to filing with the SEC:
• Reduce the base rebates for executions of orders that add displayed volume in securities ≥$1.
• Reduce the rebate under Liquidity Provision Tier 1.
• Change the required criteria for Liquidity Provision Tier 2.
• Reduce the base rebates for executions of orders that add non-displayed volume in securities ≥$1 (including non-displayed orders, midpoint peg orders and orders subject to the Exchange’s Display-Price Sliding that add liquidity and receive price improvement).
• Increase the rebates for executions of orders that add non-displayed volume in securities <$1 (including non-displayed orders, midpoint peg orders and orders subject to the Exchange’s Display-Price Sliding that add liquidity and receive price improvement).
• Add a new Non-Display Add Tier 1 and rename Non-Display Add Tiers 1, 2, and 3 to Non-Display Add Tiers 2, 3, and 4.
• Change the required criteria for Non-Display Add Tiers 3 and 4.
• Reduce the rebate under NBBO Setter/Joiner Tier 2.
• Change the required criteria for Displayed Liquidity Initiative Tier 1.
• Reduce the rebate under Displayed Liquidity Initiative Tier 2.
Changes are reflected in bold text below.
Transaction Fees
| Fee Code | Description | Fee/(Rebate) – Securities at or above $1.00 (“A”) | Fee/(Rebate) – Securities below $1.00 (“B”) |
| B, D or J | Added displayed volume | (0.075% of total dollar value) | |
| B1, D1 or J1 | Added displayed volume, Liquidity Provision Tier 1 | (0.075% of total dollar value) | |
| B2, D2 or J2 | Added displayed volume, Liquidity Provision Tier 2 | $(0.00325) | (0.075% of total dollar value) |
| B3, D3 or J3 | Added displayed volume, Liquidity Provision Tier 3 | $(0.0031) | (0.075% of total dollar value) |
| B4, D4 or J4 | Added displayed volume, Liquidity Provision Tier 4 | $(0.0029) | (0.075% of total dollar value) |
| B5, D5 or J5 | Added displayed volume, Liquidity Provision Tier 5 | $(0.0027) | (0.075% of total dollar value) |
| B6, D6 or J6 | Added displayed volume, Liquidity Provision Tier 6 | $(0.0024) | (0.075% of total dollar value) |
| Bq1, Dq1 or Jq1 | Added displayed volume, DLI Tier 1 | $(0.0031) | (0.075% of total dollar value) |
| Bq2, Dq2 or Jq2 | Added displayed volume, DLI Tier 2 | $(0.0028) | (0.075% of total dollar value) |
| Br, Dr or Jr | Added displayed volume, Retail Order | $(0.0034) | (0.075% of total dollar value) |
| P | Added volume, order subject to Display-Price Sliding that receives price improvement when executed | ||
| H | Added non-displayed volume | ||
| M | Added non-displayed volume, Midpoint Peg | ||
| H1, M1, P1 | Added non-displayed volume, Non-Display Add Tier 1 | $(0.0028) | (0.075% of total dollar value) |
| H | Added non-displayed volume, Non-Display Add Tier | $(0.0027) | |
| H | Added non-displayed volume, Non-Display Add Tier 3 | $(0.0024) | |
| H | Added non-displayed volume, Non-Display Add Tier 4 | $(0.0018) | |
| R | Removed volume from MEMX Book | $0.0030 | 0.28% of total dollar value |
| R1 | Removed volume from MEMX Book, Liquidity Removal Tier 1 | $0.00295 | 0.28% of total dollar value |
| Rr0 | Removed volume from MEMX Book upon entry, Retail Order (Day/GTT/RHO) | Free | Free |
| Z | Routed to another market, removed liquidity | $0.0030 | 0.30% of total dollar value |
Liquidity Provision Tiers
| Tier | Rebate Per Share | Required Criteria |
| Tier 1 | Member has an ADAV (excluding Retail Orders) ≥ 0.45% of the TCV | |
| Tier 2 | $(0.00325) | Member has (1) an ADAV |
| Tier 3 | $(0.0031) | Member has an ADAV ≥ 0.20% of the TCV |
| Tier 4* | $(0.0029) | Member has (1) an ADAV ≥ 0.15% of the TCV; or (2) a Displayed ADAV ≥ 0.02% of the TCV and a Step-Up Displayed ADAV of the TCV from April 2023 ≥ 50% of the Member’s April 2023 Displayed ADAV of the TCV** |
| Tier 5* | $(0.0027) | Member has an ADAV ≥ 0.075% of the TCV |
| Tier 6* | $(0.0024) | Member has a Displayed ADAV ≥ 0.007% of the TCV and has a Step-Up Displayed ADAV of the TCV from May 2023 ≥ 50% of the Member’s May 2023 Displayed ADAV of the TCV*** |
* Members that qualify for Tier 4, 5, or 6 based on activity in a given month will also receive the associated Tier 4, 5, or 6 rebate during the following month.
**Criteria (2) of Liquidity Provision Tier 4 will expire no later than October 31, 2023.
***Liquidity Provision Tier 6 will expire no later than November 30, 2023.
Non-Display Add Tiers
| Tier | Rebate Per Share | Required Criteria |
| Tier 1 | $(0.0028) | Member has (1) a Non-Displayed ADAV ≥ 8,000,000 shares; or (2) Member has an ADAV (excluding Retail Orders) ≥ 0.45% of the TCV |
| $(0.0027) | Member has a Non-Displayed ADAV ≥ 5,000,000 shares | |
| $(0.0024) | Member has a Non-Displayed ADAV ≥ | |
| $(0.0018) | Member has a Non-Displayed ADAV ≥ |
NBBO Setter/Joiner Tiers
| Tier | Additive Rebate Per Share* | Required Criteria |
| Tier 1 | $(0.0004) | Member has an ADAV with respect to orders with Fee Code B ≥ 0.10% of the TCV |
| Tier 2 | Member has an ADAV ≥ 0.05% of the TCV and a Displayed ADAV with respect to orders with Fee Code B or J ≥ 40% of the Member’s Displayed ADAV with respect to orders with Fee Code B, D or J |
*Rebate is in addition to otherwise applicable rebate for executions of added displayed volume (other than Retail Orders) in securities priced at or above $1.00 per share that establish the NBBO or establish a new BBO on MEMX that matches the NBBO first established on an away market. MEMX will append Fee Code “S1” (for Tier 1) and “S2” (for Tier 2) to the otherwise applicable Fee Code for qualifying executions.
Displayed Liquidity Incentive (DLI) Tiers
| Tier | Rebate Per Share | Required Criteria |
| Tier 1 | $(0.0031) | Member has (1) an NBBO Time of at least 25% in an average of at least 1,000 securities per trading day during the month; and (2) an ADAV ≥ |
| Tier 2 | Member has an NBBO Time of at least 25% in an average of at least 500 securities per trading day during the month |
Please see the Fee Schedule for more details.
Contact Market Operations or your MEMX Relationship Manager with any questions.