NYSE Arca Europe, the multilateral trading facility (MTF) operated by NYSE Euronext, plans to introduce a new pricing promotion for Spanish stocks from 4 June.
The fee promotion offers the NYSE Arca Europe members a rebate of 0.30 basis points for maker activity and 0.15 basis points for taker activity, up to a maximum of €20,000 per member per month.
Market quality will be bolstered by liquidity provider agreements on the ten most liquid stocks of the IBEX 35, Spain's main blue-chip index.
NYSE Arca Europe's pricing promotion pits it against rival MTF BATS Chi-X Europe, which launched its own successful pricing promotion in Spain in October last year. The promotion, which only includes Spanish stocks traded on the Chi-X Europe order book increased the MTF's market share of IBEX 35 stocks to 5.05% in April, the first time an alternative exchange has ever breached the 5% mark.
The Chi-X Europe order book offers a rebate of 0.30 basis points for all passive executions for securities in Banco Santander, Banco Bilbao Vizcaya Argentaria, Iberdrola, Industria de Diseño Textil, Repsol and Telefonica. The Chi-X promotion includes trading, clearing and settlement costs.
NYSE Arca Europe traded €916,536 worth of Spanish equities in May. By comparison, BATS Chi-X Europe held 5.41% market share in May, accounting for €2.10 billion in turnover. Domestic exchange group Bolasas y Mercados Españoles still held 90.96% market share, with a turnover of €35.33 billion in May, according to data provided by Thomson Reuters.
Total Spanish equity market activity decreased from €41.89 billion in April to €38.84 billion last month.