Direct Edge takes on Nasdaq OMX BX with fee change

US equities trading system operator Direct Edge will introduce a new maker-taker fee structure on its EDGA platform from 1 November, mirroring the pricing model used by rival venue Nasdaq OMX BX.
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US equities trading system operator Direct Edge will introduce a new maker-taker fee structure on its EDGA platform from 1 November, mirroring the pricing model used by rival venue Nasdaq OMX BX.

From 1 November, EDGA traders will be charged $0.0002 for posting liquidity and rebated $0.0002 for taking liquidity. There is currently no charge for either posting or taking liquidity on the platform.

According to Direct Edge, the pricing changes will keep EDGA “at the top of the routing table for smart order routers while preserving it as a cost-effective destination for firms that value priority over rebates”.

Nasdaq OMX BX, operated by exchange group Nasdaq OMX, currently pays a $0.0001 rebate for taking liquidity and charges $0.0003 for posting liquidity for Tape A and C securities. For Tape B securities it pays a $0.0014 rebate to add liquidity and a charges a $0.0016 fee to remove it. From 2 November BX will change the Tape B pricing to match that for the other two tapes.

Tape A securities are listed on the New York Stock Exchange, Tape B on NYSE Arca and the American Stock Exchange, and Tape C on Nasdaq.

In addition to its new EDGA pricing, Direct Edge plans to bring pricing for Tape B securities trading on its EDGX platform in line with the rest of its charges. Members will be rebated $0.0025 for adding liquidity, which can rise to $0.0030 for Super Tier customers and $0.0032 for Ultra Tier customers.

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