BATS Europe, the pan-European multilateral trading facility (MTF) backed by Kansas-based exchange group BATS Global Markets, will introduce a new price promotion for UK stocks following the success of a similar initiative in Euronext stocks.
From 1 September, BATS will pay a rebate of 0.4 basis points for adding liquidity in UK stocks and charge a 0.2 bps fee for removing liquidity. This is known as inverted pricing because the rebate paid is higher than the fee charged. Furthermore, members that trade £50 million or more worth of UK stocks on BATS Europe during September will not be charged any fees for removing liquidity for that month.
The MTF’s similar inverted price promotion for Euronext stocks in June and July rebated users 0.5 bps for adding liquidity and charged 0.3 bps for removing liquidity. During the two months of this price promotion, BATS hit market share highs of 7.55% in the French CAC 40 index, 4.86% in the Belgian BEL 20 index and 5.44% of the Dutch AEX 25 index.
“As BATS Europe’s participant base expands we are renewing our commitment to the trading community by offering special pricing unmatched by our competitors,” said BATS Europe CEO Mark Hemsley in a statement. “The low-latency, highly efficient BATS Europe platform is geared to handle trading from each and every type of participant with its consistent and resilient performance.”