Euronext has slashed up to 30% off the cost of trading in Dutch stocks in a bid to head off competition from the London Stock Exchange.
Both Deutsche Borse and the London Stock Exchange have made aggressive bids to target disaffected Dutch brokers on Euronext. The LSE plans to launch a trading service in Dutch securities - called EuroSets - in May which, it says, will undercut Euronext fees by 40%.
Jean-François Theodore, CEO and Chairman of Euronext says: "Having listened to our customers we are introducing a fee incentive proposal for those who trade Dutch securities."
He says trading in Dutch securities has grown by 15% the first quarter of 2004, compared to the first quarter of 2003, while the exchange's electronic cash trading platform has achieved an availability rate of 100% over the last nine months.
To further stimulate liquidity, Euronext is introducing a 50% discount on passive orders up to the 60,000 benchmark, and free trading above this threshold.
In addition, on the first 60,000 trades per month on Dutch securities they complete, all customers will get a 5% discount and will qualify for an additional 5% off any trading over this threshold.
Euronext says the incentive scheme will be backdated to 1 April and will be reviewed at the end of 2004.
Euronext is also waiving the annual membership fee until 2005 for small volume brokers who wish to become Associated Trading Partners and who sign up before September 2004. Associated Trading Partnership status is designed specifically for existing cash market customers with low trading volumes and enables them to aggregate their trades through a larger 'host' to benefit from volume discounts.