Cboe Europe Additional
Liquidity Provider Scheme (A-LPS)
The Cboe A-LPS (Additional Liquidity Provider Scheme) is a new innovative pricing model that rewards participants for setting the Best Bid or Offer (BBO) on the Cboe CXE Lit Book. We believe this pricing program will enhance the market quality on our CXE lit order book by increasing depth and tightening spreads, benefitting all market participants.
Cboe A-LPS launched on 1 May, 2020 for forty blue-chip Milan securities with the aim to run for a minimum of six months. Following a successful launch Cboe extended to wider markets by adding the most liquid securities listed in Paris, UK, Amsterdam, Madrid, Frankfurt, Brussels, Lisbon, Dublin and Nordics.
Blue chip Swiss-listed securities will be included in A-LPS from 4 February, 2021.
Please refer to the Symbol Reference Data file for a list of securities and associated min BBO setter size. To learn more, contact the sales team.
Download our fact sheet for more information:
Cboe A-LPS fact sheet
Cboe Europe Equities Liquidity Provider Program
The Cboe Europe Equities Liquidity Provider Program (LPP) has been designed to ensure deep liquidity in securities traded on the Cboe Europe Equities (Cboe) integrated order books. Registered Liquidity Providers post and maintain continuous bid and ask prices for their chosen securities, subject to certain commitments as set out below.
All symbols traded on Cboe Europe are eligible for all liquidity provider programs.
Key Liquidity Provider Commitments
Cboe has three Liquidity Provider Programs. Participants can choose to participate for one or more of these programs. Participants must post and maintain executable quotes on the integrated order book(s) for the chosen securities and complying with the time, size and price requirements, as set out in the table below:
| Required Size * | Specified Price % | Required Time | Required Market Share | |
|---|---|---|---|---|
| Program 1 | €5,000 | 0.25% | 80% | n/a |
| Program 2 | €5,000 | As per RLP commitment | 95% | n/a |
| Program 3 | None | 2% | 50% | n/a |
| Program 4* | €5,000 | As per RLP commitment | 95% | 0.5% |
Program 4 is applicable to the DXE environment only
LPP 1 Qualifying Symbols**
| Symbol Name | Symbol | ISIN | Currency | Cboe Venue | Qualifying Date |
|---|---|---|---|---|---|
**A security available for trading on Cboe NL and specifically identified as eligible for LPP1 stipend credit payments as per the Cboe NL Trading price list criteria.
Features and Benefits of the LPP
Features of the LPP
- A broad range of eligible securities
- Straightforward application process
- Ability to select or update registered securities via website login
- Registered Liquidity Providers (RLP) can either register in a portfolio of their chosen securities or quickly select a specific index or market segment
Benefits for Registered Liquidity Providers
- Recognition on the Cboe website as a registered liquidity provider, showing your firm’s commitment to providing liquidity
- Customised reports for registered liquidity providers to track their performance
How to Become a Registered Liquidity Provider
Only direct trading Participants of Cboe are eligible to become registered liquidity providers. The three step process for Participants is:
- complete and sign the Liquidity Provider Addendum to the Participant Agreement, agreeing to the terms and obligations of the Program;
- choose the securities for which your firm would like to register; and
- identify and assign specific trading groups for the LPP.
Current Registered Liquidity Providers
| Liquidity Provider | CXE | BXE | DXE |
|---|---|---|---|
| BNP Paribas Financial Markets SNC | Yes | Yes | Yes |
| BRED Banque Populaire | No | No | Yes |
| Citadel Securities (Europe) Limited | Yes | Yes | No |
| Citadel Securities GCS (Ireland) Limited | No | No | Yes |
| Erste Group Bank AG | No | No | Yes |
| FlowTraders B.V. | Yes | Yes | Yes |
| Goldenberg Hehmeyer LLP | Yes | No | Yes |
| HRTEU Limited | Yes | No | Yes |
| Headlands Technologies Europe B.V. | Yes | Yes | Yes |
| Hudson River Trading Europe Limited | Yes | Yes | No |
| Jane Street Financial Limited | Yes | Yes | Yes |
| Jump Trading Europe B.V. | Yes | Yes | Yes |
| Optiver V.O.F. | Yes | Yes | Yes |
| QRT Master Fund SPC - Torus Fund SP | Yes | No | Yes |
| Qube Master Fund Limited | Yes | No | Yes |
| Raiffeisen Bank International AG | No | No | Yes |
| Societe Generale London Branch | Yes | Yes | Yes |
| Societe Generale SA | No | No | Yes |
| Squarepoint Master Fund Ltd | No | No | Yes |
| Tower Research Capital Europe BV | No | No | Yes |
| Tower Research Capital Europe Limited | Yes | Yes | No |
| UG Europe AG | Yes | No | No |
| UTR8 BV | Yes | No | No |
Further details of the LPP can be found in the Participant Manual.
Key Documents
Participants who are interested in the LPP and would like to become a registered liquidity provider should review the following documents:
- Participant Manual - contains further details about the Program, minimum requirements and definitions.
- Liquidity Provider Addendum