Cboe Displayed and Non-Displayed Midpoint Discretionary Order
Midpoint Discretionary Order (MDO) is a blended order type that incorporates the characteristics of Primary Peg, Midpoint Peg and Discretionary orders. Members can use MDOs to post displayed or non-displayed liquidity at the National Best Bid/National Best Offer for Buy/Sell orders with a discretionary range extending to and including the NBBO midpoint. MDOs do not execute at a price more aggressive than the NBBO midpoint. MDO is available on EDGA and EDGX.
- Displayed MDOs to Buy/Sell are displayed at and pegged to the NBB/NBO with a non-displayed discretionary component.
- Non-Displayed MDOs to Buy/Sell are non-displayed at and pegged to the NBB/NBO with a non-displayed discretionary component.
- MDOs can be entered with or without a limit price.
MDOs have discretion to execute at prices ranging to and including the midpoint of the NBBO, consistent with their limit price.
- If an MDO’s limit price does not allow discretion to the midpoint of the NBBO, then the MDO will have discretion to its limit price.
- The discretionary range will only be used if necessary. Incoming contra side orders that cross the spread will execute at the MDO’s NBB or NBO resting price.
|EDGA MDO Execution||Fee Code||Fee|
|Adds/Removes liquidity at the discretionary range||DM, DT||$0.003/FREE|
|Adds/Removes liquidity at Displayed/Non-Displayed Price||DA, DR||$0.0003/($0.0024)|
|EDGX MDO Execution||Fee Code||Fee|
|Adds/Removes liquidity at the discretionary range||DM||($0.0010)*|
* Subject to other exchange non-displayed volume tiers.
Please contact the Cboe U.S. Equities Trade Desk ([email protected], 913.815.7001) or your Director of Sales with any questions. We appreciate your continued support of Cboe and look forward to earning more of your business.