BATS Europe, the multilateral trading facility (MTF) owned by US exchange group BATS Global Markets, will cut its fee for removing liquidity to 0.25 basis points from 0.30 bps on a pan-European basis from 1 October until the end of the year.
The rebate for adding liquidity to BATS Europe’s order book will remain unchanged at 0.20 bps, and the MTF will continue with its current dark pool pricing – a 0.1 bps rebate for adding liquidity and a 0.25 bps fee for removing it.
BATS Europe’s latest price promotion will take effect directly after the expiry of its inverted fee offer for UK stocks on September 30. Since 1 September, BATS has rebated to members providing liquidity in UK stocks 0.40 bps and charged those removing liquidity 0.20 basis points. In addition, liquidity removal fees were waived for those trading £50 million or more notional value in UK stocks.
BATS will continue to offer inverted pricing on a range of exchange-traded funds, rebating liquidity providers 0.50 bps and charging takers 0.25 bps.
The promotion is the latest in a line of special offers from MTFs aimed at driving up market share. BATS Europe has offered an unbroken series of discounts since June, when it launched its two-month inverted price promotion for NYSE Euronext-listed stocks.
Rival MTF Nasdaq OMX Europe has been running a special offer for NYSE Euronext-listed stocks since May, under which both the maker rebate and taker fee are 0.15 bps.
In August, Chi-X Europe announced that it would cut its taker fee to 0.20 bps from 0.30 bps in October for firms that doubled the value traded on the MTF in September versus an average of the previous three months.
According to the Fidessa Fragmentation Index, BATS Europe had a 3.72% market share of pan-European on-order-book cash equities trading in the week ending September 25, compared with Chi-X’s 12.71% and Nasdaq OMX Europe’s 0.66%.