Equiduct revises pricing to reward liquidity providers

Equiduct revises pricing to reward liquidity providers

New multi-lateral trading facility Borse Berlin Equiduct has revised its pricing structure ahead of its forthcoming launch in an effort to reward users for bringing liquidity to the platform.

In a statement, the regulated market says it will move to a maker/taker structure rather than the innovative (but less straightforward to compare easily with other venues) fixed sums for trade value bands fee model.

Artur Fischer, joint CEO of Börse Berlin Equiduct Trading explains: "We have always stated that our fees will be both attractive to our participants and transparent in accordance with MiFID. This fundamental requirement has not changed but we have listened to the market and understand that in these times of diminishing price spreads liquidity providers expect to receive some recognition for their support for our market."

Under the revised model, incoming orders to the MTF's hybrid automated order book will be charged at 0.3 basis points upon execution, whereas passive orders placed on the book will earn a rebate of 0.15 basis points if a buyer matches up. For marketmakers transacting on the platform, the volume weighted best bid and offer price will be calculated from simulated partial executions on the relevant European reference markets LSE, XETRA, NYSE Euronext and Chi-X. New markets such as Turquoise or Nasdaq/OMX European Blue Chips will also be taken into consideration in the VBBO calculation, says the exchange.

Market participants will additionally be charged a one-off regulated market membership fee of EUR6000. Direct access to real-time data flows for market data from the Equiduct order book will be invoiced at EUR30 per month.

The switch by Equiduct follows the announcement earlier this month by the London Stock Exchange that it plans to slash its 7½p execution charge and 1p order charge, and give credit to those who offer up big deals providing liquidity. New tariffs, the first for 18 months, will be introduced next month, in advance of the launch of rival platform Turquoise.

Yesterday, Instinet Chi-X, which claims to offer cheaper trading than other established incumbents, saw its share of Ftse 100 stocks rise to 20% for the first time since its launch 14 months ago.

Comments: (0)