Nasdaq OMX Europe, the pan-European MTF, has revised its pricing structure for directing orders to other European trading venues via its onward routing service.
The biggest fee cut was for routing orders to the London Stock Exchange (LSE), which will now be charged at 0.65 basis points, instead of the 0.9bps that was originally planned.
According to Nasdaq OMX Europe, the new lower fee for routing to the LSE was calculated using an average of the new charges for aggressive execution introduced by LSE on 1 September. In its new pricing structure, the LSE abandoned fixed fees that previously applied to every trade and introduced rebates to firms that post liquidity in large-cap stocks.
Nasdaq OMX Europe’s routing fees to other MTFs Chi-X and Turquoise, have been cut to 0.3bps to 0.35bps respectively, and routing to Euronext Paris/Amsterdam and Deutsche Börse is now charged at 0.9bps, reduced from 1.0bps. Trading on the Oslo Børs and OMX Nordic Exchange has also reduced by 0.1bps to 1.3bps. There is no charge for orders that remain unfilled after being routed out.
The pan-European order routing service, which allows market participants to access Nasdaq OMX Europe’s order book as well as multiple pools of liquidity across Europe, uses broker-dealer Citi’s high-speed equities execution platform. On Nasdaq OMX Europe’s launch – scheduled for 26 September – it will be able to onward route to fellow MTFs Chi-X and Turquoise and will route to BATS Trading when European MTF goes live, currently scheduled for Q4 2008. Primary markets will also be added, but there are currently no planned routing links to any dark pools.
“We are excited to launch an aggressive pricing strategy that will, in most cases, make it less expensive to route an order through our market than to trade directly on the primary markets,” commented Charlotte Crosswell, president of Nasdaq OMX Europe, in a statement. “By routing through NASDAQ OMX Europe, we will offer the opportunity to access liquidity on our own order book as well as a greater likelihood of gaining best execution and price improvement at a lower cost.”