BATS Exchange to pay liquidity takers
US equities trading venue BATS Exchange will pay a rebate to firms removing liquidity from its order book under certain conditions as part of its new routing and execution fee schedule, which takes effect today.
BATS will now pay market participants $0.0001 per share for removing liquidity through its opt-in dark scan strategy for all securities. The dark scan strategy allows BATS participants to route orders to its dark liquidity partners, which currently include GETCO Execution Services, Knight Link, Liquidity Ping, and Liquidnet H2O.
This is a departure from a traditional maker-taker pricing structure, which charges a fee for removing liquidity while paying liquidity providers a rebate.
The exchange has also cut its default routing rate to $0.0025 per share from $0.0026. This represents the second cut in BATS’s routing fees since January this year.
In addition, trading fees for Tape A, B, and C stocks on BATS’s displayed market have been simplified. The exchange now offers a rebate of $.0024 for adding liquidity and a charge of $.0025 for liquidity removal.
BATS will also keep its “One Under” discount scheme for destination-specific routing in place, which charges users reduced rates for using the exchange’s BATS + Nasdaq, BATS + NYSE Arca and BATS + NYSE Floor order types at $0.0029, $0.0027 and $.0017 respectively.
“BATS Exchange remains focused on offering a simple but aggressive fee structure so more market participants can enjoy the economic and performance benefits of our world-class matching engine and smart order router,” said BATS Exchange CEO Joe Ratterman in a statement.