Direct Edge has revealed a new pricing structure for its EDGX trading platform, based on recent price changes from its competitors and customer feedback.
There are three primary changes affecting rebates and fees on the EDGX platform and general routing fees.
Effective from May 1, base fees and rebates will be standardised to a rebate of $0.0025 per share and an access fee of $0.0026 per share. The firm is also creating a tier for customers who add a combine total 40 million shares per day to the EDGX platform, to receive a rebate of $0.0029 per share. In addition, the standard routing rate on EDGX and EDGA is to be raised to $.0029 per share, with cost-based routing to the NYSE and NYSEArca in Tape C stocks continuing unchanged.
“Our approach reflects what we believe is a real opportunity to stake out a healthier balance in the wake of the pricing changes of others that are chasing market share exclusively through the raising of rebates (and corresponding increase in access fees),” said William O’Brien, CEO of Direct Edge, in a statement. “Rebates do matter, but a good trading experience takes several factors into account, including fill rates and fill priority. The cost proposition for liquidity removers can have as much of an impact on the trading experience of liquidity providers as the rebate you pay them.”