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NYSE Euronext Reduces Fees for Trading Pan-European Cash Markets

Integrated fee structure ties in with trading on NYSE Arca Europe and SmartPool.

NYSE Euronext plans to rollout a new integrated transacting pricing structure that is going to reduce and simplify fees for customers across its pan-European cash equity markets. This is going to result in an overall reduction of approximately 20 percent in trading fees across Europe, according to the company’s release.

As of April 1st, 2009, the new integrated pricing structure will apply to the company’s new pan –European multi-lateral trading facility, NYSE Arca Erupe, and its non-displayed block trading facility, SmartPool. The markets are accessible through the company’s recently introduced Universal Trading Platform in Europe, which offers customers Pan European trading on an ultra-low latency platform, according to the release.

“NYSE Euronext European customers are now able, through one single connection to our next generation Universal Trading Platform, to have access to stocks across fifteen European countries through our regulated markets, NYSE Arca Europe and SmartPool. Liquidity is key in the current climate, and our new fee structure is aimed at attracting more order flow and creating deeper liquidity,” stated Roland Bellegarde, group EVP and head of European execution at NYSE Euronext in the release. “Liquidity is key in the current climate, and our new fee structure is aimed at attracting more order flow and creating deeper liquidity,” Bellegarde further stated.

The new equity fee structure will apply to trading on all stocks listed on the regulated cash markets of Amsterdam, Brussels, Lisbon and Paris. The new fee structure will replace the current Pack Epsilon and Packs B, C and D fee structures. Exchange fees will be removed.

A fixed fee will be charged per executed order instead of per trade, which is the same principle as the former Pack Epsilon fee structure. Customers will only be charged for the first execution, after which the trades originating from the same order will be free. If there is a further reduction in transaction values on NYSE Euronext regulated markets, the new scheme introduces a cap in basis points.

For the new NYSE Arca Europe platform, trading fees will be based on a competitive 0.15 basis points for all trades. There is also a volume incentive scheme whereby the more a customer trades on NYSE Arca Europe, the more they will benefit from lower trading fees for NYSE Euronext-listed stocks on the regulated market, according to the release.

While SmartPool has a straightforward pricing model in basis points — 1 or 2 basis points depending on the average daily trading volume of European blue chips —as of April 1st, SmartPool will introduce a dedicated fee package for algorithmic DMA (direct market access) order flow, which is 0.5 basis points (bps) for all stocks. In addition, SmartPool will offer a routing facility with the Euronext regulated market charging 0.5 bps per transaction.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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