I found that CME and CBOE and exchange fees - both attached but unable to understand CBOE fees

[FSU]

Exchange fees are going to always be paid by someone in the equation - what you are sending is a "preferenced order" and in the index complex at CBOE those are worth their weight in gold.
Doesn't need to go on the form 605/605 and 607 is as vague as possible because it's not hard payment. If I'm a size MM and I could get preferencing from 3 or 4 brokers it's worth a fortune, especially if there is only one destination. You should discuss preferencing with your broker if you want to understand more.

Think of Etrade and Morgan Stanley. Essentially internalization and no checks get written.

Interesting. I have never heard that term before. I assume a "preferenced order" is different from customer priority? Would you mind explaining/talking about a "preferenced order" a bit more? Thanks.

 

[ajacobson]

It would be vastly easier to just go to google or sec.gov. The box filing are the most recent entry.

 

[ajacobson]

The first filings for preferencing go back to the early 2000s. There is also preferenced liquidity, but that is more relevant SN.

"This new order type will allow Participants to designate a Market Maker (a “Preferred Market Maker”) to receive an allocation preference with respect to a percentage of the Preferenced Order."

If I remember Optionhouse - they drove these filings and did SPX for free.

This is also a part - not all - of the driver behind creating so many exchanges.
Guarantee some flow - collect ORF and voila, you open at breakeven.

Also a driver in the Pro - customer membership

 

[newwurldmn]

Thanks,
Always interested in Brokers who don't charge these exchange fees.

i was wrong. 55 cents for exchange fees on the CBOE.

 

[traviskelce]

CME fees and rebates are easy to understand but can someone explain CBOE fees and their rebates if any?

I am trying to figure out what is the actual cost for brokers and if they are adding any mark up before they pass through to retail clients?

Also if brokers are getting any rebates ?
Fidelity is charging flat free for spx trading - 0.65$ - and to my understanding that is the actual fees CBOE charge them - 0.45$ +0.20$ surcharge - - so they are not making money or they are making money in rebates give by CBOE?

You wrote “Flat free” in one place and $.65 in another place.

What’s the Lowest charge anyone has seen To trade SPX options?