Nasdaq OMX Europe, the pan-European multilateral trading facility (MTF) operated by US-based exchange group Nasdaq OMX, plans to increase its fees for routing passive orders to primary exchanges only two months after a similar increase.
The increase will also apply to the BLNK order type, which allows participants to divert orders destined for the primary markets onto the Nasdaq OMX Europe order book for up to 25 milliseconds before being routed on.
At the beginning of December last year, Nasdaq OMX Europe started to differentiate the pricing of its passive and aggressive PRIM order types, which allow the platform’s members to route orders to the relevant primary market if a match is not found on its own order book, by increasing the passive fees.
The latest rise, due to come into effect from 1 February, will increase the all-inclusive passive cost for PRIM orders sent to the London Stock Exchange to 0.75 basis points, from the 0.45 bps charge introduced in December, to 0.75 bps from 0.6 bps for orders sent to Deutsche Börse and to 1.1 bps from 0.9 bps for orders routed to NYSE Euronext’s Paris, Brussels and Amsterdam markets.
The price for aggressive PRIM orders will remain the same at 0.3 bps for LSE-routed orders and 0.5 bps for orders sent to Deutsche Börse and the three NYSE Euronext markets.
A spokesperson for Nasdaq OMX told theTRADEnews.com that the firm had always intended to raise the passive order routing fee again in February, and that the initial change in December was a step towards the new tariff to give clients the chance to adjust their strategies.
At the time of the initial fee change, Todd Golub, COO, Nasdaq OMX Europe, explained that the increase was designed to keep more passive flow on the MTF’s order book rather than routing on to other market centres. Nasdaq OMX Europe is currently the only displayed pan-European multilateral trading facility to offer onward routing from its platform to other markets.