Effective Wednesday, November 1, 2023, MEMX will be implementing the following changes to transaction fees, subject to filing with the SEC:
- Modify the required criteria under Liquidity Provision Tier 1.
- Reduce the rebate and modify the required criteria under Liquidity Provision Tier 2.
- Reduce the rebate and modify the required criteria under Liquidity Provision Tier 3.
- Modify the required criteria under Liquidity Provision Tier 4.
- Reduce the rebate and modify the required criteria under Liquidity Provision Tier 5.
- Remove Liquidity Provision Tier 6.
- Reduce the base rebate for executions of Retail Orders that add displayed volume in securities ≥$1.
- Adopt a new Retail Tier that provides an enhanced rebate for executions of Retail Orders that add displayed volume in securities ≥$1.
- Modify the required criteria under Liquidity Removal Tier 1.
- Modify the required criteria under Non-Display Add Tier 1.
- Reduce the additive rebate under NBBO Setter/Joiner Tier 1 and rename such tier to “NBBO Setter Tier 1”.
- Remove NBBO Setter/Joiner Tier 2.
- Adopt a new a Tape B Volume Tier that provides an additive rebate for executions that add displayed volume in Tape B securities ≥$1.
- Adopt a new Displayed Liquidity Incentive (“DLI”) Additive Rebate that provides an additive rebate for executions of added displayed volume (excluding Retail Orders) in securities priced ≥$1 that otherwise qualify for DLI Tier 1 and that meet the criteria under Liquidity Provision Tier 1 or Liquidity Provision 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 | $(0.0015) | (0.075% of total dollar value) |
| B1, D1 or J1 | Added displayed volume, Liquidity Provision Tier 1 | $(0.0033) | (0.075% of total dollar value) |
| B2, D2 or J2 | Added displayed volume, Liquidity Provision Tier 2 | $(0 | (0.075% of total dollar value) |
| B3, D3 or J3 | Added displayed volume, Liquidity Provision Tier 3 | $(0 | (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 | (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 | $(0.0026) | (0.075% of total dollar value) |
| Br, Dr or Jr | Added displayed volume, Retail Order | $(0 | (0.075% of total dollar value) |
| Br1, Dr1 or Jr1 | Added displayed volume, Retail Tier 1 | $(0.0034) | (0.075% of total dollar value) |
| P | Added volume, order subject to Display-Price Sliding that receives price improvement when executed | $(0.0008) | (0.075% of total dollar value) |
| H | Added non-displayed volume | $(0.0008) | (0.075% of total dollar value) |
| M | Added non-displayed volume, Midpoint Peg | $(0.0008) | (0.075% of total dollar value) |
| H1, M1, P1 | Added non-displayed volume, Non-Display Add Tier 1 | $(0.0028) | (0.075% of total dollar value) |
| H2, M2, P2 | Added non-displayed volume, Non-Display Add Tier 2 | $(0.0027) | (0.075% of total dollar value) |
| H3, M3, P3 | Added non-displayed volume, Non-Display Add Tier 3 | $(0.0024) | (0.075% of total dollar value) |
| H4, M4, P4 | Added non-displayed volume, Non-Display Add Tier 4 | $(0.0018) | (0.075% of total dollar value) |
| 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 |
Definitions:
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- “Step-Up Tape B ADAV” means ADAV in Tape B securities in the relevant baseline month subtracted from current ADAV in Tape B securities.
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Liquidity Provision Tiers
| Tier | Rebate Per Share | Required Criteria |
| Tier 1 | $(0.0033) | (1) Member has an ADAV (excluding Retail Orders) ≥ 0.45% of the TCV; or (2) Member has a Step-Up ADAV (excluding Retail Orders) from September 2023 ≥ .05% of the TCV, an ADV ≥ 0.50% of the TCV, and a Non-Displayed ADAV ≥ 5,000,000 shares*; or (3) Member has an ADAV ≥ 0.30% of the TCV and a Non-Displayed ADAV ≥ 7,000,000 shares |
| Tier 2 | $(0 | (1) Member has |
| Tier 3 | $(0 | Member has an ADAV ≥ 0.175% |
| Tier 4 | $(0.0029) | (1) Member has |
| Tier 5 | $(0 | (1) Member has an ADAV ≥ |
* 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 1 will expire no later than March 31, 2024.
**Criteria (2) of Liquidity Provision Tier 2 will expire no later than March 31, 2024.
*** Criteria (2) of Liquidity Provision Tier 4 will expire no later than October 31 December 31, 2023. Due to the expiration of Criteria (2), Members that qualify for Tier 4 based on activity meeting Criteria (2) in October 2023, will not receive Liquidity Provision Tier 4 rebate during the following month.
**** Criteria (2) of Liquidity Provision Tier 5 will expire no later than November 30, 2023.
*** Liquidity Provision Tier 6 will expire no later than November 30, 2023. Due to the expiration of Tier 6, Members that qualify for Tier 6 based on activity in November 2023, will not receive the Liquidity Provision Tier 6 rebate during the following month.
Retail Tier
| Tier | Rebate Per Share | Required Criteria |
| Tier 1 | $(0.0034) | Member has a Retail Order ADAV ≥ 0.07% of the TCV |
Liquidity Removal Tier
| Tier | Fee Per Share | Required Criteria |
| Tier 1 | $0.00295 | Member has (1) an ADV ≥ |
Non-Display Add Tiers
| Tier | Rebate Per Share | Required Criteria |
| Tier 1 | $(0.0028) | Member has |
| Tier 2 | $(0.0027) | Member has a Non-Displayed ADAV ≥ 5,000,000 shares |
| Tier 3 | $(0.0024) | Member has a Non-Displayed ADAV ≥ 2,000,000 shares |
| Tier 4 | $(0.0018) | Member has a Non-Displayed ADAV ≥ 1,000,000 shares |
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NBBO Setter/Joiner Tiers
| Tier | Additive Rebate Per Share* | Required Criteria |
| Tier 1 | $(0 | Member has an ADAV with respect to orders with Fee Code B ≥ 0.10% of the TCV |
*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.
Tape B Volume Tier
| Tier | Additive Rebate Per Share* | Required Criteria |
| Tier 1 | $(0.0001) | Member has (1) a Step-Up Tape B ADAV of the Tape B TCV from October 2023 ≥ 0.10% (excluding Retail Orders); and (2) a Tape B ADAV ≥ 0.25% of the Tape B TCV (excluding Retail Orders) |
*Rebate is in addition to otherwise applicable rebate for executions of added displayed volume (excluding Retail Orders) in securities priced over $1.00 per share. MEMX will append the Fee Code “b” to the otherwise applicable Fee Code for qualifying executions. Additionally, Tape B Volume Tier 1 will expire no later than April 30, 2024.
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DLI Additive Rebate
| Tier | Additive Rebate Per Share* | Required Criteria |
| Tier 1 | $(0.0001) | (1) Member meets the criteria for DLI Tier 1 (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 ≥ 0.10% of the TCV); and (2) Member meets at least one of the following criteria: (a) Member meets the criteria for Liquidity Provision Tier 1 (has an ADAV (excluding Retail Orders) ≥ 0.45% of the TCV; or Member has a Step-Up ADAV from September 2023 ≥ .05% of the TCV, an ADV ≥ 0.50% of the TCV, and a Non-Displayed ADAV (excluding Retail Orders) ≥ 5,000,000 shares; or Member has an ADAV ≥ 0.30% of the TCV and a Non-Displayed ADAV ≥ 7,000,000 shares); or (b) Member meets the criteria for Liquidity Provision Tier 2 (Member has an ADAV ≥ 0.25% of the TCV and a Non-Displayed ADAV ≥ 4,000,000 shares; or Member has a Step-Up Displayed ADAV of the TCV from September 2023 ≥ 0.10% and an ADAV (excluding Retail Orders) ≥ 0.20% of the TCV) |
*Rebate is in addition to the otherwise applicable rebate under Liquidity Provision Tier 1 or 2 for executions of added displayed volume (excluding Retail Orders) with a Fee Code of B, D, or J in securities priced over $1.00 per share. MEMX will append the Fee Code “q” to the otherwise applicable Fee Code for qualifying executions.
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Please see the Fee Schedule for more details.
Contact Market Operations or your MEMX Relationship Manager with any questions.