Pan-European clearing house European Multilateral Clearing Facility (EMCF) will offer its clearing participants a choice between its current flat fee per execution and a new flat fee per order from 1 June.
According to the clearer, the new pricing model will allow for more predictable fees and lower costs where orders result in multiple executions.
EMCF currently charges €0.03 per execution in UK stocks and €0.05 for all other markets it serves. From 1 June, clients will be able to opt for a fee of €0.05 per order for UK stocks and €0.07 for all other markets. Users will be able to choose whether they are charged by execution or by order on the first day of every month.
EMCF clears for pan-European multilateral trading facilities Chi-X Europe, BATS Europe and Nasdaq OMX Europe as well as Nasdaq OMX’s Nordic exchanges. It has signed deals to interoperate with fellow clearing houses SIX x-clear and LCH.Clearnet Ltd.
“We believe that the flexibility offered by the new innovative EMCF fee options will help reduce the overall frictional costs of trading and make the market more efficient,” said Hirander Misra, COO of Chi-X Europe, in a statement. “We welcome this development as it should act as an enabler to attract new liquidity into European cash equities.”
Mark Hemsley, CEO of BATS Europe, added: “This is an excellent innovation in pricing structure that is being offered by EMCF. EMCF has been responsive to the requests of their current trading and clearing clients by providing choice in their pricing structure which lets each client optimise their own cost model.”