18 Top of Book Size – 33.33% of Total TOB Size Contribution • Each MM’s contribution to that portion of the symbol TOB size target that is not being provided by natural (non-MM) TOB liquidity • TOB Size Contribution = Minimum of (MM average TOB size, TOB Size Deficit) / TOB Size Deficit Where: • TOB Size Deficit = Target TOB Size – TOB Size not provided by MMs • Relative TOB Size Contribution % = TOB Size Contribution / (MM1 TOB Size Contribution + MM2 TOB size Contribution) • For example: • Target TOB Size = 5000, and TOB Size not provided by MMs (“natural liquidity”) = 3000. TOB Size Deficit = 2000. • Scenario 1: MM1 contributes 1,500 shares and has a TOB Size Contribution of 1,500. MM2 contributes 2,500 shares, capped at the maximum 2,000 shares, so MM2 has a TOB Size Contribution of 2000. MM1 Relative TOB Contribution % = 43% (1500 / (1500 + 2000)) and MM2 Relative TOB Contribution % = 57% • (2000 / (1500 + 2000)) o Scenario 2: MM1 contributes 3,000 shares and MM2 contributes 2,500 shares. Both have a TOB Size Contribution capped at the maximum 2,000 shares, so therefore MM1’s Relative TOB Size Contribution % = 50% vs MM2 Relative TOB Size Contribution = 50% • Where the TOB Size Deficit is less than 10 board lots, both MMs are assessed at an equal 50% contribution. 33.33% Where unequal contributions exceed a 40-60% relative ratio, these measurements are utilized to determine the proportionate Market Maker fee incentives on a symbol basis.
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