The New York Stock Exchange (NYSE) and Nyse Arca, units of Nyse Euronext (NYX), today announced new transaction pricing, effective March 1, 2009, pending SEC filing.
The NYSE fee change will include customer rebates for adding liquidity while continuing to offer the lowest transaction fees for taking liquidity in NYSE-listed securities among the major market centers. The fee change is expected to be rolled out in conjunction with significant NYSE execution speed improvements. The NYSE Arca fee change raises the rebate for active traders in Tape A (NYSE-listed) and Tape C (Nasdaq-listed) securities, as well as a higher rebate on Mid-Point Passive Liquidity (MPL) orders for all customers in all securities. Together, the dual-exchange model of the NYSE and NYSE Arca deliver the best rate combination among major exchanges and superior liquidity when trading NYSE-listed securities, in addition to the lowest take fee on NYSE and highest rebate on NYSE Arca.
In addition, NYSE Euronext's Global Multi-Platform Incentive Program offers additional savings to active global customers trading on the NYSE, NYSE Arca and Euronext markets. The program provides rebates of 0.007€ and 0.003€ (per 100 shares) for customers with average daily volume of more than 450 million and 250 million shares, respectively.
NYSE Equities Price Changes
"Recent pricing incentives for Designated Market Makers and Supplemental Liquidity Providers have contributed to significant increases in posted liquidity and NYSE market share gains," said Joe Mecane, Executive Vice President and Chief Administrative Officer, U.S. Markets. "We are further extending this incentive program by offering a compelling rebate to all NYSE customers, while continuing to maintain the lowest take rate for accessing liquidity."
Effective March 1, 2008, the new NYSE fee schedule for customers and floor brokers will include the following changes and benefits:
• Customer rebate per share for adding liquidity of $0.0010 (previously no rebate) in displayed and non-displayed orders. Floor broker rebate per share for adding liquidity of $0.0012 (previously $0.0004) in displayed and non-displayed orders. Benefits of posting orders on the NYSE include: 1) Highly competitive rebate for liquidity providing in non-displayed orders; 2) Access to superior take liquidity offering higher certainty of execution; 3) Participation in block sweeps from the New York Block Exchange (NYBX).
• Transaction fee per share for removing liquidity of $0.0018 (previously $0.0008) for customers and floor brokers. The NYSE continues to offer the best take fee for accessing liquidity, which is 28%-40% lower than other major market centers;
• Transaction fee per share for market-on-close (MOC) and limit-on-close (LOC) orders of $0.0005 (previously $0.0004) for customers and floor brokers. Participants will continue to benefit from the $120 fee cap on all transactions.
• Transaction fee per share for odd lot transactions (including odd lot portions of partial round lots) of $0.0010 (previously $0.0004). The NYSE continues to offer the lowest take fee for removing odd lots, which is 60%-67% lower than other major market centers.
All other NYSE customer fees remain unchanged.
NYSE Arca Equities Price Changes
Effective March 1, 2008, the following NYSE Arca equities transaction fee changes will go into effect:
For customers with an average daily share volume per month greater than 90 million shares in Tape A, B and C trading, including adding liquidity of more than 45 million shares, the new rates per share are as follows:
• For Tape A and Tape C securities, the pricing structure is inverted, including a rebate of $0.0029 for orders that add liquidity (previously $0.0028) and a fee of $0.0028 for orders that remove liquidity (previously $0.0027). The new inverted pricing structure will be in effect for a minimum of three months.
For all customers not reaching at least 60 million average daily share volume, the rates per share are as follows:
• In Tape A and Tape C securities, all customers will receive a rebate of $0.0020 per share for resting MPL orders (previously $0.0010) and in Tape B securities the rebate is $0.0010 per share (previously zero). The MPL order is an undisplayed limit order that offers price improvement to customers by executing at the mid-point of the National Best Bid and Offer (NBBO).
• For Tape A and Tape C securities, the rebate is $0.0023 for orders that add liquidity (unchanged) and the fee is $0.0030 for orders that remove liquidity (previously $0.0029).