NYSE Group to eliminate member-firm fee cap as well as specialist commissions

By: Ray Pellecchia

File Under: NYSE

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There was considerable discussion in this space the last time we changed our transaction fees, so I thought you'd want to see a news release on additional changes we're announcing today:

NYSE Group To Eliminate Member Firm Fee Cap on NYSE-listed Equity Trading and Specialist Commissions on Transactions.

Excerpt:

-- Eliminating $750,000 monthly fee cap for member organizations;
-- Establishing flat fee pricing of $0.000275 per share for NYSE-listed securities trading on the NYSE;
-- Eliminating specialist commissions on transactions;
-- NYSE implementing revenue sharing program and reducing certain specialist fees;
-- Changes effective Dec. 1, 2006 pending SEC approval.

"These changes continue our progress towards improving the value proposition for our customers by simplifying and reducing the all-in cost of trading of NYSE listed securities through the elimination of the specialist commission," said Nelson Chai, Chief Financial Officer and Executive Vice President. "As a result of this filing, specialist firms, which will continue to play an important role at the NYSE, will experience lower fixed costs and participate in a revenue sharing program that will reward them for providing liquidity to our market.

"For NYSE Group, these changes are designed to be revenue neutral in the near term, will enhance our ability to attract share volume in our listed stocks, and will allow us to capture incremental revenue as volume grows. NYSE believes that the combined effect of these fee changes will make its pricing structure more competitive, efficient and transparent."

Tags: New York Stock Exchange, Hybrid Market, NYSE, NYSE Group, NYX,
trading, stock market, trading costs