Pan-European clearing house EuroCCP will implement a new fee schedule for clearing European equity trades from 1 October, which will charge high-volume users €0.002 a side and cut fees for all other users.
Under the new schedule, EuroCCP will charge €0.030 a side for users sending a daily average of between 0 and 100,000 sides to the platform, €0.010 from users sending
between 100,000 and 500,000 sides and the lowest fee of €0.002 for those sending over 500,000 sides.
EuroCCP currently charges €0.05 a side, which it reduced from €0.06 in April this year.
According to EuroCCP, the new fee schedule will deliver “significant value” to high-frequency trading firms operating across multiple markets. The clearer also claims it now offers the most competitive pricing in Europe. Fellow pan-European clearer EMCF, which is 22%-owned by exchange group Nasdaq OMX, charges €0.03 per execution for UK stocks and €0.05 for other markets. It also offers a per-order charge of €0.05 for UK stocks and €0.07 for other markets.
“The market is looking for pricing to be simpler and more transparent, enabling traders to build predictable clearing costs into their models,” said Diana Chan, CEO of EuroCCP, in a statement. “With the launch of our enhanced tiered fee structure, we’re bringing US high-volume pricing to Europe, and offering a safe and low-cost service to help our customers and partners achieve further economies of scale.”
The new fee schedule is part of EuroCCP’s innovation programme, which will see it launch new products and expand into further market sectors.
EuroCCP clears equity trades in 15 countries and in seven different currencies. EuroCCP currently provides central counterparty services for equity trades on the Turquoise, SmartPool, NYSE Arca Europe and Pipeline trading platforms.