US equities trading venue Direct Edge will invert the prices for trading Tape B securities on its EDGX platform from January 2 next year, meaning that its maker rebate will be higher than its taker fee.
Tape B securities are those listed on the American Stock Exchange, NYSE Arca and the US’s regional stock exchanges.
Direct Edge will boost the rebate it pays for posting liquidity to $0.0035 a share from $0.0025, and leave the charge for removing liquidity at $0.0026. This means Direct Edge will effectively pay its customers $0.0009 a share to trade on the platform, assuming a 50:50 maker to taker ratio. There are no minimum volume requirements to take advantage of the new pricing. The firm has not said how long the new fee schedule will last.
Direct Edge says the $0.0035 rebate is the highest in the US. Rival venue BATS pays $0.0030 for posting liquidity for Tape B securities and charges $0.0025 for removing it.
Prices for Tape A and C securities on Direct Edge’s EDGX platform and for the entire EDGA platform remain unchanged. Direct Edge’s two trading platforms are identical except for their pricing – adding and removing liquidity is free on EDGA.
In November, Direct Edge’s matched market share of the US equities market was 5.49%, up from 4.95% in October, and its handled market share 9.80%, up from 8.49 in October.