A new pricing structure will reduce fees for high-frequency trading by up to 30% on NYSE Euronext’s European cash equity markets, the exchange group said.
The new fee package, Pack Epsilon, will be effective from 1 July 2008 for all stocks listed on Euronext Amsterdam, Brussels, Lisbon and Paris. The exchange group said the new prices reflect growing demand for high-frequency trading.
Pack Epsilon will allow eligible Euronext clients to increase order flow while being charged for the first partial order execution only, rather than for each partial execution linked to the same order. In addition, Euronext’s existing order-to-trade ratio will be expanded from 10:1 to 30:1, allowing eligible clients to increase their order flow capacity without incurring a transaction fee.
Pack Epsilon will only be eligible to high-frequency traders that have the specific regulatory “dealer” status and that comply with Euronext auditing rules, said the firm in a statement.
“This innovative pricing has been designed to take into consideration the development of new business flows from high-frequency trading that use automated or algorithmic strategies to benefit from market opportunities,” said Roland Bellegarde, group executive vice president and head of European execution at NYSE Euronext. “This initiative reinforces the attractiveness of Euronext cash markets and enhances liquidity for the benefit of all our customers.”