Pan-European MTF Turquoise will introduce a new maker-taker tariff structure on 1 April to help combat the fall in trading market share suffered since its market-making agreements with founding banks expired on 13 March.
Under the new fee schedule, Turquoise will pay a rebate of 0.20 basis points for a passive order to members that conduct between 0% and 1% of their trades on Turquoise on a per-country basis. Members that execute more than 1% of their trades by country on Turquoise will receive a 0.24bp rebate for passive orders.
Currently, only members who trade between 2% and 3% of their market-wide volume on Turquoise receive the 0.20bps passive rebate, while members who trade more than 3% of their market-wide volume on Turquoise get a 0.22% rebate. The platform pays a 0.12bp rebate to firms trading between 0% and 2% of their flow.
Turquoise will also introduce a liquidity provider rebate of 0.24bps. The rebates are available for all stocks, either where a liquidity provider covers all names in a country index or on an individual name basis. Terms and conditions of the plan are available to all members on request.
Turquoise’s 0.28bp charge for aggressive executions remains unchanged. The company also charges a 0.04bp auction fee and a 0.50bp dark trading fee.
In addition to the revised fee schedule, Turquoise will launch a facility for trading dark orders that are smaller than MiFID’s large-in-scale restrictions on 14 April, which it hopes will boost trading. The firm also expects continued trading growth from new and existing users.
“There are new members joining week by week, and there are firms who have joined, verified settlement processes and tuned their strategies who are now increasing the value of their trading,” Duncan Higgins, head of client relationship management at Turquoise, told theTRADEnews.com.
Turquoise’s market share of trading in stocks on eight major European indices fell to 2.42% on 19 March from 6.19% on 13 March – the day its market-making agreements expired. The agreements came into force in mid-September last year, shortly after the platform started trading its full complement of stocks on 29 August.
Turquoise’s nine founding banks are BNP Paribas, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, Merrill Lynch, Morgan Stanley, Société Générale Corporate & Investment Banking and UBS.