Nasdaq has announced the 14 securities it will use to test the effects of reduced exchange fees early next year.
The firm’s main US exchange will be introducing a pilot pricing scheme on 2 February 2015 and will cut prices for taking liquidity and significantly reduce rebates.
Some regulators and market participants have been concerned that exchange rebates have distorted markets as traders seek to avoid fees and claim rebates.
Currently, Nasdaq charges US$0.30 per 100 shares to immediately buy stocks, while its complex array of rebates for adding liquidity are often of a similar amount.
The new pricing structure significantly simplifies the regime, with a fee of US$0.05 per 100 shares to take liquidity. Rebates for displayed liquidity, adding non-displayed mid-point and adding other non-displayed liquidity will be US$0.04, US$0.02 and US$0 respectively.
Seven names will be Nasdaq-listed, covering symbols AAL, AVNR, FEYE, GPRO, GRPN, SIRI and ZNGA. The other seven are NYSE-listed securities, with symbols BAC, GE, KMI, RAD, RIG, S and TWTR.
The pilot scheme is set to last for no less than four months, and Nasdaq said its Economic and Statistical Research Group will periodically update on the program’s progress via is Equity Trader Alerts. Key statistics will include market share, displayed liquidity, effective spreads and volatility.