US exchange group Direct Edge plans to introduce a new order type on its EDGA Exchange from 18 July that will allow market participants to receive a full rebate or reduced fee if it is executed within a set range.
The midpoint discretionary order (MDO) is a displayed order on the EDGA book, pegged to the national best bid and offer (NBBO). Any execution that occurs within a given range decided by the user, including at the mid-point, will have a discounted rate of US$0.0005 per share. MDO orders on the book that are executed at the NBBO will receive the standard rebate of US$0.0003. The new order type can be entered with or without a limit price.
In May, Direct Edge delayed the introduction of its Message Efficiency Incentive Program order to trade message tariff by one month, which reduces the rebates members receive if their message-to-trade ratio is above 100:1 by US$0.0001 per share.