US options exchange the International Securities Exchange (ISE) is expanding its modified maker-taker pricing programme to cover 100 instruments. The move, effective on 1 September, brings the proportion of ISE instruments covered by the modified maker-taker pricing structure to 60%.
ISE's modified maker-taker pricing programme includes rebates for market makers who meet market quality thresholds, competitive taker fees for non-customer orders and no taker fees for retail-sized customers. The modified programme was originally introduced on 1 April for three of the most actively traded options products on its exchange, the PowerShares QQQ Exchange Traded Fund, Citigroup and Bank of America.
“We have received tremendous support from our member firms for the combination of our pro-rata, customer priority market structure with modified maker-taker pricing,” said Boris Ilyevsky, managing director of ISE's options exchange. “The new fee structure has improved ISE's market quality by increasing the amount of time ISE is on the national best bid and offer. We will continue to monitor the programme and will expand where appropriate if further market quality improvements can be achieved.”