Two US trading venues, equities platform Direct Edge and options exchange International Securities Exchange (ISE) – which owns 31.54% of Direct Edge –
will introduce new fee schedules on 1 May that offer more attractive pricing.
Direct Edge will increase the rebate for posting liquidity on its EDGX trading platform for “Super Tier” customers to $0.003 from $0.0029 while leaving the change for taking liquidity unchanged at 0.0026.
Users qualify for Direct Edge’s Super Tier if on a daily basis they either: add 40 million shares to either of the EDGX or EDGA trading platforms or both combined; add 20 million shares to either or both platforms and route 20 million shares or more through EDGA; or add 10 million shares or more to EDGX, as long as added liquidity on the platform is at least 5 million shares greater than the previous calendar month.
According to Direct Edge, a firm providing 10 million shares per day to rival exchange Nasdaq and getting a $0.002 rebate, could get a 50% greater rebate by shifting to Direct Edge, which would save it $210,000 in May alone.
The standard rebate for adding liquidity to EDGX is $0.0025 for Tape A and C stocks and $0.003 for Tape B stocks.
Also from 1 May, the ISE will eliminate transaction fees for its premium options products, which include multiple-listed exchange-traded fund (ETF) and index options. The change excludes foreign exchange options products and proprietary index options.
“ISE is committed to offering the most competitive options trading venue for retail and institutional customers,” said Boris Ilyevsky, managing director of ISE’s options exchange, in a statement. “This new pricing structure, in conjunction with our customer priority market model, provides the best and lowest cost execution for customer orders sent to ISE.”