Liquidity Requirements
Information about the minimum liquidity requirements under the Cboe Market Maker Fee Programme for each Schedule is found below
| Price (A$) | MAXIMUM Spread1 |
Minimum value2 | Minimum time3 |
|---|---|---|---|
| Schedule 1 | |||
| $5< | 2c | $50,000 | 80% |
| ≥$5 | 40bps | $50,000 | 80% |
| Schedule 2 | |||
| $5< | 3c | $30,000 | 80% |
| ≥$5 | 60bps | $30,000 | 80% |
| Schedule 3 | |||
| $5< | 5c | $25,000 | 80% |
| ≥$5 | 1% | $25,000 | 80% |
| Schedule 4 | |||
| $5< | 7c | $20,000 | 80% |
| ≥$5 | 1.5% | $20,000 | 80% |
| Schedule 5 | |||
| $5< | 10c | $17,500 | 80% |
| ≥$5 | 2% | $17,500 | 80% |
| Schedule 6 | |||
| $5< | 12c | $15,000 | 80% |
| ≥$5 | 250bps | $15,000 | 80% |
| Schedule 7 | |||
| $5< | 17c | $12,500 | 80% |
| ≥$5 | 350bps | $12,500 | 80% |
| Schedule 8 (currently not in use) | |||
| Schedule 9 | |||
| $5< | 1.5c | $100,000 | 80% |
| ≥$5 | 30bps | $100,000 | 80% |
| Schedule RB4 | |||
| $0.05< | Reasonable Bid4 | $5004 | 90% |
| ≥$0.05 | Reasonable Bid4 | $1,0004 | 90% |
- “MAXIMUM SPREAD”: The maximum spread is calculated based on the best bid price submitted by the relevant market maker.
- “MINIMUM VALUE”: The minimum value is calculated based on the bid price for the bid quantity and offer price for the offer quantity submitted by the relevant market maker.
- “MINIMUM TIME”: As a percentage of “Active Continuous Trading” as defined in the Cboe Operating Rules.
-
A Reasonable Bid for a Schedule RB investment product will exist if:
- the minimum value requirement is met (see the table above); and
-
one of the following metrics are met:
-
if both a bid and offer are being posted, and:
- if the bid price is less than $0.10, the spread between the bid price and the offer price is less than $0.01; or
- if the bid price is at or higher than $0.10, the spread between the bid price and the offer price is less than 10% of the bid price; or
- if a bid only is being maintained, it must be a “reasonable bid”
-
if both a bid and offer are being posted, and: