Nasdaq OMX delays messages traffic fees
Nasdaq OMX has
delayed the introduction of its excess order fee on its main US market until 2
July to give its members more time to prepare their systems for more efficient
The bourse was
due to implement a charge from today designed to discourage undue order
messages on its market but has now decided to delay this until next month,
according to a filing with US regulator the Securities and Exchange Commission
Nasdaq OMX plans
to use a weighted order-to-trade ratio that would levy fees based on the
proximity of messages to the national best bid and offer.
participants that exceed a
100:1 ratio under the scheme will be charged between US$0.001 and US$0.01.
stated in the SEC filing that is believed the fee would “constrain
market participants from pursuing certain inefficient and potentially abusive
Rival US stock exchange Direct Edge will launch its
own message traffic charges on its EDGA and EDGX order books today, despite
having previously delayed the launch by a month so that it coincide with Nasdaq
Under Direct Edge’s message efficiency investor
programme, members that have a message-to-trade ratio over 100:1 will have
their rebate cut by US$0.0001 per share.