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On January 9th (subject to SEC approval) the CHX will be implementing a change to matching-engine (ME) pricing in which the exchange ME fee differentiation will no longer be based on whether or not an issue is traded on Tape A, B or C but instead will differentiate ME fees on whether or not an issue is a Derivative Securities Product (DSP). The most common DSPs are ETFs, ETVs or ETNs and a complete list of CHX eligible DSPs is attached and is also available on the CHX website under the “Traded Issues” link within the “Trading Information” heading.
http://www.chx.com/content/Trading_Information/DSP_Issues.html
Pursuant to this change, the CHX will only pay a provide credit of .0022/share for activity in DSPs (the majority of which are Tape B issues and currently eligible for provide credits) and will pay no credit for provide activity in non-DSPs. Importantly, activity in non-DSP Tape B securities that have been eligible for a .0022/share provide credit will no longer qualify for that credit and activity in approximately 83 DSP Tape A and C securities (such as QQQ) will now be eligible for provide credits. Tape A and C DSPs that will now be eligible for the provide credit are highlighted in blue.
These changes only apply for regular session activity in securities priced over one dollar activity. Extended hour and under one dollar activity will not be impacted. Please contact Gerry Sadowski at GSadowski@chx.com, 312 663-2568 or Celeste Gianfrancisco CGfrancisco@chx.com, 312 663-2038 with any questions you may have about this fee change.
