As the battle for market share in European stocks ramps up, bank-backed equity trading venue Turquoise says it will increase the rebates it pays to members for posting bids on its order books.
Turquoise, which is competing against traditional incumbents such as the LSE and other upstart entrants like Chi-X for market share, will establish a new price structure from 2 February designed to increase incentives for high volume traders.
Higher rebates will be paid for executed passive orders from members whose trading exceeds specified levels. The rebates will be based on the total amount traded on Turquoise over the course of a calendar month on a country-by-country basis. The higher rebates will apply to all passive executions in that month, retroactively, once the qualifying levels of trading are reached.
Firms whose trading exceeds three per cent of market-wide volume will receive a rebate of 0.22 basis points whilst those trading more than two per cent will get 0.20 basis points.
All members will also get higher rebates for Austrian and Portuguese stocks, and for Spanish stocks when they begin trading on Turquoise on 16 February.
Turquoise currently claims six per cent marketshare in the 310 stocks traded on its platform, but faces tough competition in a market characterised by declining share trading volumes.
Eli Lederman, chief executive, Turquoise, says: "We're pleased to be able to offer Turquoise members these new prices, and we expect the value we offer to attract considerable new liquidity to our MTF to the benefit of our entire trading community."
Last week the MTF said it has raised enough money in a recent round of funding to secure its financial position for the rest of the year.