Nasdaq OMX has delayed the introduction of its excess order fee on its main US market until 2 July to give its members more time to prepare their systems for more efficient order entry.
The bourse was due to implement a charge from today designed to discourage undue order messages on its market but has now decided to delay this until next month, according to a filing with US regulator the Securities and Exchange Commission (SEC).
Nasdaq OMX plans to use a weighted order-to-trade ratio that would levy fees based on the proximity of messages to the national best bid and offer.
Trading participants that exceed a 100:1 ratio under the scheme will be charged between US$0.001 and US$0.01.
Nasdaq OMX stated in the SEC filing that is believed the fee would “constrain market participants from pursuing certain inefficient and potentially abusive trading strategies”.
Rival US stock exchange Direct Edge will launch its own message traffic charges on its EDGA and EDGX order books today, despite having previously delayed the launch by a month so that it coincide with Nasdaq OMX’s plans.
Under Direct Edge’s message efficiency investor programme, members that have a message-to-trade ratio over 100:1 will have their rebate cut by US$0.0001 per share.