Pan-European multilateral trading facility (MTF) BATS Chi-X Europe has stepped up its assault on the Spanish market with the introduction of a new permanent tariff for the country’s blue-chips.
The new pricing will come into force on the MTFs CXE order (the former Chi-X Europe platform) on 1 October and charge 0.35 bps for aggressive orders and rebate 0.25 bps for passive liquidity. All other European markets on CXE are subject to a 0.2 bps rebate for adding liquidity and a 0.3 bps charge for removing liquidity.
The adjustment will bring the long-running price promotion for Spanish stocks on CXE, which increased the rebate for IBEX 35 stocks to 0.3 bps compared to other markets and refunded post-trade costs for participants that traded over €200 million worth of Spanish stocks in a month.
The promotion led to CXE reaching a peak market share in IBEX 35 stocks of 5.4%, according to data from Thomson Reuters. Last month it traded 3.2% of Spanish stocks.
MTFs have thus far struggled to break into the Spanish market because of complex clearing and settlement requirements that make it expensive to trade Spanish stocks on alternative platforms. Reforms to national regulation are currently underway to ease the post-trade process for MTFs that trade Spanish stocks.