Exchange group NYSE Euronext has announced a new transaction pricing model for equities traded on its Arca electronic exchange platform. The new pricing will come into effect on 1 May.
Features of the new model include rebates for non-displayed orders and a new ‘post/take’ rate combination for active customers in NYSE-listed securities.
This follows price changes by NYSE Arca at the beginning of April, where new fees were introduced for NYSE-listed securities, NYSE Arca options and for active Nasdaq traders.
The rebates on non-displayed mid-point passive liquidity (MPL) orders will apply to NYSE-listed securities only. An MPL order is an undisplayed limit order that offers price improvement to customers by executing at the mid point of the national best bid and offer (NBBO) benchmark. It will be $0.0010 per share on resting MPL orders and $0.0015 per share for clients that provide average daily share volume of more than 30 million shares each month.
Customers who provide average daily share volume in excess of 40 million shares per month will receive a reduced ‘take’ fee of $0.0029 per share as well as a higher rebate of $0.0028 per share. The routing fee for orders that meet this volume threshold will be $0.0008 per share for orders routed to the NYSE and $0.0030 per share for orders routed to other exchanges.
“The new NYSE Arca pricing provides even more benefits to high volume customers, and the MPL order type is a useful alternative to dark pools,” comments Lawrence Leibowitz, group executive vice president, US execution and global technology at NYSE Arca. “In addition to anonymity and price improvement, MPLs offer better fill rates due to unique order interaction on one of the largest exchange liquidity pools. Coupled with attractive rebates, this provides significant advantages over dark pools.”
Following recent price changes, NYSE Arca will also waive the rebate cap of 100 million daily average shares per month in NYSE-listed securities and 75 million daily average shares per month in Nasdaq-listed securities in order to encourage liquidity.