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Trader Alert 24-24: Equities Fee Schedule Update Effective April 1, 2024

Effective Monday, April 1, 2024, 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
  • Modify the required criteria under Liquidity Provision Tier 2
  • Modify the required criteria under NBBO Setter Tier 1
  • Increase the rebate and modify the required criteria under Tape B Volume Tier 1
  • Rename Cross Asset Tier 1 to Cross Asset Tier 3.
  • Adopt a new Cross Asset Tier 1 that provides an enhanced rebate for executions on MEMX Equities if a Member has an ADAV in the Market Maker capacity of equal to or greater than 250,000 contracts on MEMX Options and an ADAV of equal to or greater than 0.30% on MEMX Equities
  • Adopt a new Cross Asset Tier 2 that provides an enhanced rebate for executions on MEMX Equities if a Member has an ADAV in the Market Maker capacity of equal to or greater than 150,000 contracts on MEMX Options
  • Reduce the rebate under DLI Additive Rebate Tier 1
  • Adopt a new Display Price-Sliding Tier that provides a Member with the Display rebate for executions subject to Display-Price Sliding, if such Member’s ADAV with respect to orders subject to Display-Price Sliding which receive price improvement when executed (excluding Retail Orders) is equal than or greater to 5,000,000 shares.

Changes are reflected in bold text below.

Fee CodeDescriptionFee/(Rebate) – Securities at or above $1.00 (“A”)Fee/(Rebate) – Securities below $1.00 (“B”)
B, D, or J or IAdded displayed volume$(0.0015)(0.075% of total dollar value)
B1, D1, or J1 or I1Added displayed volume, Liquidity Provision Tier 1$(0.0033)(0.075% of total dollar value)
B2, D2, or J2 or I2Added displayed volume, Liquidity Provision Tier 2$(0.0032)(0.075% of total dollar value)
B3, D3, or J3 or I3Added displayed volume, Liquidity Provision Tier 3$(0.0030)(0.075% of total dollar value)
B4, D4, or J4 or I4Added displayed volume, Liquidity Provision Tier 4$(0.0029)(0.075% of total dollar value)
B5, D5, or J5 or I5Added displayed volume, Liquidity Provision Tier 5$(0.0025)(0.075% of total dollar value)
Bq1, Dq1, or Jq1 or Iq1Added displayed volume, DLI Tier 1$(0.0031)(0.075% of total dollar value)
Bq2, Dq2, or Jq2 or Iq2Added displayed volume, DLI Tier 2$(0.0026)(0.075% of total dollar value)
Br, Dr or JrAdded displayed volume, Retail Order$(0.0032)(0.15% of total dollar value)
Br1, Dr1 or Jr1Added displayed volume, Retail Tier 1$(0.0034)(0.15% of total dollar value)
BO1, DO1, or JO1 or IO1Added displayed volume, Cross Asset Tier 1$(0.002633)(0.075% of total dollar value)
BO2, DO2, JO2 or IO2Added displayed volume, Cross Asset Tier 2$(0.0027)(0.075% of total dollar value)
BO3, DO3, JO3 or IO3Added displayed volume, Cross Asset Tier 3$(0.0026)(0.075% of total dollar value)
PAdded volume, order subject to Display-Price Sliding that receives price improvement when executed$(0.0008) (0.075% of total dollar value)
HAdded non-displayed volume$(0.0008) (0.075% of total dollar value)
MAdded non-displayed volume, Midpoint Peg$(0.0008) (0.075% of total dollar value)
H1, M1, P1Added non-displayed volume, Non-Display Add Tier 1$(0.0028)(0.075% of total dollar value)
H2, M2, P2Added non-displayed volume, Non-Display Add Tier 2$(0.0027) (0.075% of total dollar value)
H3, M3, P3Added non-displayed volume, Non-Display Add Tier 3$(0.0024)(0.075% of total dollar value)
H4, M4, P4Added non-displayed volume, Non-Display Add Tier 4$(0.0018)(0.075% of total dollar value)
RRemoved volume from MEMX Book$0.00300.28% of total dollar value
R1Removed volume from MEMX Book, Liquidity Removal Tier 1$0.002950.28% of total dollar value
Rr0Removed volume from MEMX Book upon entry, Retail Order (Day/GTT/RHO)FreeFree
ZRouted to another market, removed liquidity$0.00300.30% of total dollar value

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Liquidity Provision Tiers

TierRebate Per ShareRequired Criteria
Tier 1$(0.0033)(1)  Member has an ADAV (excluding Retail Orders) ≥ 0.45% of the TCV; or (2) Member has a Step-Up ADAV (excluding Retail Orders) from September 2023 ≥ .05% of the TCV, an ADV ≥ 0.50% of the TCV, and a Non-Displayed ADAV ≥ 5,000,000 shares*; or (3) Member has an ADAV ≥ 0.30% of the TCV and a Non-Displayed ADAV ≥ 7,000,000 shares
Tier 2$(0.0032)(1) Member has an ADAV ≥ 0.25% of the TCV and a Non-Displayed ADAV ≥ 4,000,000 shares; or (2) Member has a Step-Up Displayed ADAV of the TCV from September 2023 ≥ 0.10% and a Displayed ADAV (excluding Retail Orders) ≥ 0.20% of the TCV**Member has an ADAV ≥ .35% of the TCV
Tier 3$(0.0030)Member has an ADAV ≥ 0.175% of the TCV
Tier 4$(0.0029)Member has an ADAV (excluding Retail Orders) ≥ 0.09% of the TCV
Tier 5$(0.0025)Member has an ADAV ≥ 0.06% of the TCV

* 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.

NBBO Setter Tier

TierAdditive Rebate Per Share*Required Criteria
Tier 1$(0.0002) for Fee Code B, and $(0.0001) for Fee Codes D and J(1) Member has an ADAV with respect to orders with Fee Code B ≥ 0.10% of the TCV; or (2) Member has an ADAV with respect to orders with Fee Code B ≥ 0.05% of the TCV or ≥ 5,000,000 shares and has a Step-Up ADAV with respect to orders with a Fee Code B ≥ 75% of the Member’s December 2023March 2024 ADAV with respect to orders with a Fee Code B**

*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. MEMX will append Fee Code “S1” (for Tier 1) to the otherwise applicable Fee Code for qualifying executions.
**Criteria (2) of NBBO Setter Tier 1 will expire no later than July 31September 30, 2024.

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Tape B Volume Tier

TierAdditive Rebate Per Share*Required Criteria
Tier 1$(0.00012)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 ≥ 0.2530% 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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Cross Asset Tier

TierRebate Per ShareRequired Criteria
Tier 1$(0.0033)Member has an Options ADAV in the Market Maker capacity* of ≥ 250,000 contracts on MEMX Options and an ADAV on MEMX Equities ≥ 0.30% of the TCV  
Tier 2$(0.0027)Member has an Options ADAV in the Market Maker capacity of ≥ 150,000 contracts on MEMX Options
Tier 13$(0.0026)Member has an Options ADAV in the Customer/Professional capacity** ≥ 20,000 contracts***  

*The definition of Market Maker is set forth in the MEMX Options fee schedule.

**The definitions of Customer and Professional are set forth in the MEMX Options fee schedule.

***Members that qualify for Cross Asset Tier 13  based on activity in a given month will also receive that associated Cross Asset Tier 13 rebate during the following month.

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DLI Additive Rebate

TierAdditive Rebate Per Share*Required Criteria
Tier 1$(0.000105)(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) Member has an ADAV ≥ 0.35% 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, or I in securities priced over $1.00 per share. MEMX will append the Fee Code “q” to the otherwise applicable Fee Code for qualifying executions.

Display-Price Sliding Tier

TierRebate Per Share*Required Criteria
Tier 1Highest rebate otherwise achieved for Member’s Added Displayed VolumeMember has an ADAV with respect to orders subject to Display-Price Sliding that receive price improvement when executed (excluding Retail Orders) ≥ 5,000,000 shares

*Applicable executions will be assigned the Fee Code “I” for Members that meet the required criteria under Display-Price Sliding Tier 1. The highest rebate achieved by the Member for Added Displayed Volume will be awarded instead of the otherwise applicable rebate for executions with a Fee Code “P”. The appropriate achieved Added Displayed Volume Fee Code(s) will be appended to Fee Code “I” in order to identify the rebate provided.

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Please see the Fee Schedule for more details.

Contact Market Operations or your MEMX Relationship Manager with any questions.