In a bid to win market share from rival bourses and alternative trading systems, transatlantic exchange Nyse Euronext is slashing fees for high-frequency, algorithmic trading on its European cash equity markets.
Nyse Euronext says the new fee system - known as Pack Epsilon - will be effective from 1st July 2008 for all stocks listed on Euronext Amsterdam, Brussels, Lisbon and Paris "to address the growing demand of high frequency trading".
Under the new pricing structure, high-frequency trading clients will be charged for the first partial order execution only, rather than being charged for each partial execution linked to the same order. This will "allow eligible clients to increase their order flow in Euronext stocks", says the exchange.
The new fee package is only open to customers that have the specific regulatory dealer status and which comply with Euronext auditing rules.
"This innovative pricing Pack Epsilon has been designed to take into consideration the development of new business flows from high frequency trading that use automated or algorithmic strategies to benefit from market opportunities, says Roland Bellegarde, group EVP and head of European execution, Nyse Euronext.
Bellegarde told FT reports that high frequency traders directly connecting to Euronext accounted for 5-10% of volume, and the exchange was looking to to increase this to 20-25%.