Global exchange group Nasdaq OMX will introduce a new pricing schedule for trading on US equities bourse The Nasdaq Stock Market (Nasdaq) from 1 July that will provide greater rewards to liquidity providers and charge liquidity takers less.
The exchange will increase its liquidity provider rebate to $0.0030 for users adding an average of more than 125 million shares a day to its order book. The rebate currently stands at $0.00295.
It will also reduce the liquidity removal fees on Tape A and C securities to $0.0027 for firms that add significant liquidity to both Nasdaq and options exchange Nasdaq OMX PHLX – formerly the Philadelphia Stock Exchange. To be eligible for the discount, firms must be members of both Nasdaq and PHLX, make markets in 400 or more options classes for PHLX a month and add an average of 35 million shares a month to Nasdaq. The undiscounted remove fee for all orders on Nasdaq is $0.0030.
Tape A securities are listed on the New York Stock Exchange (NYSE). Tape B securities are listed on the American Stock Exchange (now a subsidiary of NYSE Euronext), NYSE Arca, and the US’s regional stock exchanges. Tape C securities are listed on Nasdaq.
Also, in a bid to encourage more retail flow onto the exchange, Nasdaq will introduce a new liquidity provider rebate of $0.0033 for firms that send agency orders in all US securities to the exchange. To be eligible, firms must designate all orders sent to Nasdaq during the relevant month as agency orders, send less than 300,000 orders per day on average for the month and add more than 50 million shares per day on average for the month.
However, also from 1 July, Nasdaq will increase the fee for participating in its closing cross to $0.0007 a share, from $0.0005 for market-on-close and limit-on-close orders. Imbalance-only and continuous book orders will continue to be free of charge.