Exchange group Nasdaq OMX has introduced a new pricing structure for trading in US equities in a bid to maintain market share against stiff competition. While rebates for posting orders will rise under the new tariff, some market participants will experience increased costs for removing liquidity.
From 15 April, market participants will receive a $0.0029 rebate for every share added between 35 and 125 million shares per day on average. Nasdaq users that add between 20 and 35 million shares per day will be rewarded with a $0.0025 per share rebate; firms that add in excess of 125 million shares will receive $0.00295 per share. Rebates for non-displayed orders will not change. However, the cost of removing liquidity now stands at $0.0030. An order routing fee will be levied at $0.026 per share.
The new pricing structure, subject to approval by the US Securities and Exchange Commission, applies to all US securities.
The exchange is also introducing new volume tiers which will be effective for the entire month of April. Market participants will qualify for both the pre- and post-15 April rates based on the new lower tiers. Pricing is now tiered into four volume bands compared with three previously.
The announcement quickly follows changes to prices for removing and adding liquidity for Tape A (NYSE-listed) and Tape C (Nasdaq-listed) securities unveiled on March 17. Under that schedule, market participants that added more than 50 million shares per month received a $0.0025 rebate per share executed, while firms that removed more than 60 million shares per day were to be charged $0.0026 per share executed.
Nasdaq and NYSE account for roughly half of US equity trading activity, but smaller rivals BATS Trading and Direct Edge have made significant inroads, with both claiming market shares in the 10-11% range in recent months.
For stocks priced above $5, BATS Trading’s remove rate is $0.0025.