The London Stock Exchange (LSE) has revealed its new onward routing fee, due to start from today, for orders routed to it via other displayed markets.
Nasdaq OMX Europe, which introduced a routing service to other trading venues, will be the only multilateral trading facility (MTF) affected by the LSE’s one-basis-point charge at the moment. However, BATS Europe, which launched on Friday, has said it intends to launch a similar onward routing service in due course.
Charlotte Crosswell, president of Nasdaq OMX Europe, labelled the LSE’s actions as “anti-competitive” when plans to charge for routing from rivals were first revealed. “What is the difference from a buy-side firm wanting to take advantage of a broker’s volume discount? It is all about getting lower transaction costs for the investors,” she said.
Nasdaq OMX Europe’s original price for routing to the LSE was 0.9bps, but this has been slashed twice since the platform’s 26 September launch, most recently to 0.25bps as part of a pricing promotion, also due to start today. If the LSE had not introduced its fee, trading on the exchange would have been cheaper via Nasdaq OMX Europe than directly on the LSE.
Nasdaq OMX Europe’s promotion also includes equal charges for maker-taker fees, meaning the overall charge to trade on Nasdaq OMX Europe for some investors will be zero.
Separately, all remaining securities from the Italian MIB 30 index were made available for trading on Nasdaq OMX Europe from Friday.