Nasdaq OMX Europe, the multilateral trading facility (MTF) owned by exchange group Nasdaq OMX, will increase tariffs next month for routing passive orders to primary exchanges in a bid to encourage more passive liquidity to remain on its platform.
The MTF is so far the only platform in Europe to offer onward routing to other trading venues.
From 1 December, users of the PRIM order type, which routes an order out to the relevant primary market if a match is initially not found on Nasdaq OMX Europe’s order book, will be charged a higher all-inclusive trading fee for passive orders than for aggressive orders.
The fee will increase to 0.45 basis points from 0.3 bps for passive PRIM orders routed to the London Stock Exchange, to 0.6 bps from 0.5 bps for orders sent to Deutsche Börse and to 0.9 bps from 0.5 bps for orders routed to NYSE Euronext’s Paris, Brussels and Amsterdam markets. The price for aggressive PRIM orders will remain the same.
“Passive orders don’t really have a high chance of executing on the Nasdaq OMX Europe book before they are routed out,” Todd Golub, chief operating officer of Nasdaq OMX Europe, told theTRADEnews.com. “By keeping fees on aggressively priced orders low, we are encouraging firms to route their marketable orders through us, and therefore attract more resting liquidity to our own book.”
Also from 1 December, The MTF will also reduce the rebates awarded to high-volume market participants to 0.6 basis points from 0.75 bps for members trading over €50 million a day, and to 0.5 bps from 0.65 bps for those trading over €40 million.
“We still have the best rebate on the street, and our customers continue to see it as highly competitive,” said Golub. “We introduced the rebate to create a sticky platform with the intention to reduce the high-volume rebate gradually.”