London Stock Exchange introduces new order book pricing

Source: London Stock Exchange

London Stock Exchange Group today announced a new, simplified fee structure for trading on its UK order books. The new structure, to be introduced from 1 September, will deliver benefits to a broad cross section of the Exchange's diverse customer base.

In particular, the new price list will:
Balance charges applicable to each side of a transaction
Substantially lower the threshold for volume discounts
Increase the number of firms benefiting from incentives
Reduce the minimum charge per execution
Introduce new incentives for trading in Small Cap securities
Xavier Rolet, Chief Executive of London Stock Exchange Group, said:

"We aim to ensure that our pricing evolves to meet the needs of customers. The structure announced today will offer new incentives from which a broader range of firms can benefit, and should help to encourage a return to the long-term trend of volume growth on our markets. There will also be savings for trading in small cap securities, where liquidity has been most affected by the financial crisis."


The Group expects the new tariff to drive growth in trading. For instance, applying the new tariff to the trading activity between January and March 2009, an additional £3 million in aggregate trading fee benefits would have accrued to member firms.

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