European exchange group Deutsche Börse will introduce a new pricing and discount model in September for firms that execute automated trading strategies on its Xetra electronic order book.
From next week, the minimum € 0.60 fee for executed orders in the exchange’s Automated Trading Program (ATP) will be phased out in favour of transaction fees based directly on the value of executed orders. The new tariff will even apply to orders below € 12,500 in value. Deutsche Börse said the new pricing model would cut the transaction fee of an executed ATP order with a value of € 6,250, for example, by 50%.
The exchange added that an increase in the number of discount levels from seven to eight would increase the maximum discount rate on Xetra transaction fees from 49 to 60 percent. On the basis of its first-half volume figures for 2008, Deutsche Börse estimates that the new pricing model will generate fee reduction of € 10 million per year for ATP customers.
Separately, Eurex Clearing, the clearing house jointly owned by Deutsche Borse and SWX Swiss Exchange, is to offer three service packages for the cash equities markets. From November, the firm will offer Full Service, Basic Net Service and Extended Net Service options, which are designed primarily to meet “the requirements for proprietary trading and of institutional investors, for example in algorithmic trading”.
“Eurex Clearing is the first Clearing House offering differentiated service packages for netting. This innovation allows our clearing members to provide their own clients with individual offers tailored to their business models,” said Thomas Book, Eurex Board Member for clearing.
Savings offered by the new service packages could be as much as 40%, said a statement by Eurex Clearing, asserting that customers with lower information needs and high trading volumes would benefit most.