NYSE Euronext, a global exchange group, has announced new transaction pricing structures for the New York Stock Exchange (NYSE) and NYSE Arca, in a move to attract more high-frequency business to both trading venues.
The change in fees will be introduced in March 2009, in conjunction with a technology upgrade that will improve execution speeds on the NYSE platform.
NYSE will introduce customer rebates of $0.001 per share for posted displayed and non-displayed orders. Floor brokers will receive an increase in their rebate fee from $0.0004 per share to $0.0012, although this will be offset by an increase in the transaction fee for removing liquidity to $0.0018, from $0.0008.
The fees for NYSE Arca, a stocks and options trading platform, will depend on a customer’s average daily share volume recorded over a month. Members who trade an average of 90 million shares in Tape A (NYSE-listed), Tape B (regional exchange-listed), and Tape C (Nasdaq-listed) securities, for example, while adding liquidity of more than 45 million shares, will be subject to an inverted pricing structure for a minimum of three months. The rebate for these members will be $0.0028 per share compared to a $0.0027 charge for removing liquidity.
Customers that do not reach at least 60 million in average daily share volume will continue to receive a rebate of $0.0023 per share for adding liquidity in Tape A and Tape C securities, while the fee for removing liquidity will increase by $0.0001 to $0.0030.
A mid-point passive liquidity order – an undisplayed limit order that executes at the mid-point of the national best bid and offer – in Tape A and C securities will receive a rebate of $0.0020 per share for resting orders (up from $0.0010) and a $0.0010 rebate will be introduced for Tape B securities.
“Recent pricing incentives for designated market makers and supplemental liquidity providers have contributed to significant increases in posted liquidity and NYSE market share gains,” said Joe Mecane, executive vice president and chief administrative officer, US Markets. “We are further extending this incentive programme by offering a compelling rebate to all NYSE customers, while continuing to maintain the lowest take rate for accessing liquidity.”