US market operator BATS Global Markets will waive listing fees for companies whose stock or exchange-traded product trades over an average of two million shares per day.
Initial fees will range from US$100,000 to US$10,000 depending on the size of the firm, while the annual fee for instruments that trade below two million shares per day will be US$35,000 for tier one corporate firms and exchange-traded products or US$20,000 for tier two corporate firms. Companies and ETPs that transfer their listings to BATS will not have to pay the initial fee. BATS’ listing fees are not based on a company’s shares outstanding and the firm will charge for the listing of additional shares.
BATS opened its listings business on 5 December on BZX, one of the two US stock exchanges it operates, in a bid to challenge NYSE Euronext and Nasdaq OMX for new issues.
The exchange has also announced the launch of its competitive liquidity provider programme, which was approved by the Securities and Exchange Commission last week. The scheme is designed to stimulate liquidity and tighten spreads for BATS’ listings and will be open to registered market makers that will compete for daily rewards based on their continuous daily quoted size at the national best bid/offer in the instruments they are registered in.
“Our aggressive pricing and innovative market maker program will appeal to small and mid-cap companies looking to grow, while larger companies will be attracted to our no-fee listing model,” said Joe Ratterman, chairman and CEO of BATS Global Markets. “All issuers, regardless of size, will benefit from BATS’ world-class customer support and technology.”
The maiden primary listing on BZX – the iShares MSCI Norway Capped Investable Market Index Fund – launched 24 January and traded 4,803 shares on its first day.