US stock exchange operator Direct Edge is reversing the ”taker-maker' price model on its EDGA exchange as part of efforts to stimulate liquidity amid low global trading volumes.
Starting on 1 August, the exchange will offer a maker rebate of 0.00005 for adding liquidity, while levying a taker charge of 0.00006 for removing liquidity. Maker-taker pricing is more common than EDGA's previous ”taker-maker' model, which aimed to encourage traders to execute against prices quoted on the exchange via rebates.
Direct Edge operates two exchanges, EDGA and EDGX, which has always operated a maker-taker model.
The switch to maker-taker on EDGA had originally been set for 1 July, but was delayed for technical reasons. Earlier this year, the company appointed former Nasdaq OMX director Bryan Christian as head of sales and connected to US alternative trading system operator BATS Global Markets, in February 2011. Direct Edge also extended its high-speed network to seven dark pools in May 2011.