Global exchange group NYSE Euronext has introduced new fee schedules at its two US options exchanges – NYSE Arca Options and NYSE Amex Options – as part of its continuing effort to be more competitive.
“These pricing adjustments, combined with our other competitive advantages, are designed to retain and attract additional order flow,” said Edward Boyle, executive vice president of NYSE Euronext US options, in a statement. “NYSE Arca and NYSE Amex options are committed to maintaining our leadership position in US equity options trading and these important pricing changes are one key piece of our evolving value proposition to customers.”
For NYSE Arca Options, the group has introduced a premium tier for electronic transactions in certain issues that are part of the penny pilot scheme. Credits awarded for posting liquidity in premium tier issues will increase to $0.30 for electronic customer and broker-dealer orders and to $0.35 for market makers.
NYSE Euronext has also introduced tiered pricing for the non-premium tiers in penny pilot issues on NYSE Arca Options. Customers trading between 1 million and 1.99 million contracts a month will be eligible for a $0.05-per-contract taker fee discount, while market makers trading the same amount will be granted an equivalent posting credit. The fee discounts and posting credits will rise to $0.10 for those trading between 2 million and 2.99 million contracts, and to $0.15 for those trading 3 million contracts or more.
Firm proprietary and facilitation rates for manual trades on NYSE Arca Options has been increased to $0.18 per contract but capped at $2,000 per issue per day. Broker dealer rates remain unchanged at 0.25% per contract with no cap. Strategy trades by manual broker dealers or firm facilitation will be billed at $0.25 per contract with a $750 a day cap for trades in the same option class. The fees also have a monthly cap of $25,000 per initiating firm. Lead market maker rights fees on NYSE Arca Options have been cut by 50%.
For NYSE Amex Options, the group has introduced tiered pricing based on monthly volume. There are six volume-based tiers in total, with rates falling by $0.05 at each tier. The first 174,999 contracts are billed at $0.25 per contract, while the cheapest rate of $0.02 per contract is available to those trading 800,000 contracts or more.
Strategy trades on NYSE Amex Options attract the same fees as those on NYSE Arca Options. Electronic broker-dealer rates, which apply to customer broker-dealer and away market maker orders arriving electronically, have been cut to $0.20 per contract from $0.30.
NYSE Amex Options has also introduced a professional customer designation, which will be subject to trading fees of $0.20 per contract for electronic executions and $0.25 for manual trades.