Cboe EDGA 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.

Behavior

  • 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.

Pricing

MDOs are charged $0.0003 per share when executed at the National Best Bid or Offer. MDOs are FREE for executions in the discretionary range.

MDO Execution Fee Code Fee
Adds/Removes liquidity at the discretionary range DM, DT FREE
Adds/Removes liquidity at Displayed/Non-Displayed Price DA, DR $0.0003

Contact

Please contact the Cboe U.S. Equities Trade Desk (tradedesk@bats.com, 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.

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