NYSE Euronext has unveiled new strategic pricing for equities transactions on the New York Stock Exchange and electronic market NYSE Arca that utilises the unique attributes of its market
NYSE Euronext has unveiled new strategic pricing for equities transactions on the New York Stock Exchange and electronic market NYSE Arca that utilises the unique attributes of its market models.
Expected to be effective as of October 1, the new plan adjusts fee schedules on both the NYSE and Arca to ensure continued market leadership in NYSE-listed securities and to enhance the group’s positioning in trading of Nasdaq-listed securities on Arca.
‘This is a dual-market model approach to pricing on our two US exchanges that gives our customers flexibility in accessing low transaction costs and superior liquidity when trading NYSE- and Nasdaq-listed securities,’ says president and co-chief operating officer Duncan Niederauer.
‘Our new pricing plan strategically leverages the unique combination of the NYSE and NYSE Arca, and improves our competitive position in the trading of both NYSE- and Nasdaq-listed securities. It also reinforces NYSE Euronext’s ongoing commitment to provide our customers with choice and the best trading experience possible.’
For trading in NYSE-listed equities the new plan ensures attractive rates without volume tiers for all customers. It includes an increase in the rebate on NYSE Arca from USD0.20 to USD0.25 per 100 shares for all customers, making it the highest rebate among major US exchanges, which is particularly attractive to proprietary traders seeking faster execution.
There are no fees for liquidity providers on the NYSE, while liquidity takers are charged USD0.08 per 100 shares, ensuring that the NYSE continues to offer the lowest take fee for all customers. Liquidity takers will have the potential to save up to 73 per cent trading on the NYSE.
The plan involves free agency block crosses on the NYSE and fee caps on mega block trades when committing capital, as well as a routing fee increase from USD0.25 to USD0.30 per 100 shares, which is generally a pass-through cost for routing trades to other market centres. This fee may be avoided using the NYSE’s new ‘Do Not Ship’ order type.
It also offers free routing to the NYSE using the new primary sweep order on NYSE Arca. The PSO will first sweep the NYSE Arca book, then route to the NYSE for free, which effectively reduces a customer’s average take fee on NYSE Arca in NYSE-listed securities.