Trading stocks and options on NYSE Arca gets cheaper, effective tomorrow

By: Ray Pellecchia

File Under: NYSE Arca

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From the press release, issued earlier today:

NYSE Arca Equities Fee Schedule Reductions
In Nasdaq-listed (Tape C) securities (including ETFs), the new NYSE Arca equities fee schedule provides for increased rebates, decreased “take” fees and reduced routing fees for large liquidity providers based on monthly average daily share volumes. In particular:

· A rebate of $0.0026 per share for orders that provide liquidity and a fee of $0.00245 per share for orders that take liquidity will apply for customers who transact average daily share volume per month greater than 60 million shares in total, including the provision of liquidity of more than 30 million average daily shares. The routing fee for orders that meet this volume threshold will be $0.0026 per share for orders routed away and executed by another market center or participant.

· A rebate of $0.0025 per share for orders that provide liquidity and a fee of $0.0026 per share for orders that take liquidity will apply for customers who transact average daily share volume per month greater than 30 million shares in total, including the provision of liquidity of more than 15 million average daily shares. The routing fee for orders that meet this volume threshold will be $0.0026 per share for orders routed away and executed by another market center or participant.

· All other customers will receive a rebate of $0.0020 per share for orders that provide liquidity, a fee of $0.0026 per share for orders that take liquidity, and a routing fee of $0.0035 per share for orders routed away and executed by another market center or participant.

For NYSE-listed (Tape A) securities, the new NYSE Arca equities fee schedule introduces an increased rebate of $0.0028 per share for orders that provide liquidity if the liquidity provider transacts an average daily share of providing volume per month greater than 30 million on NYSE Arca.

Pricing remains unchanged on the New York Stock Exchange (NYSE) in NYSE-listed securities (Tape A) and for trading in all Tape B securities (including ETFs). The NYSE continues to offer the most attractive take fee in NYSE-listed securities of $0.0008 per share for all customers.
Firms interested in advertising quotes in their own names can do so using NYSE Arca’s attribution capability, which is available through major vendors and service bureaus such as Fidessa, Lava Trading and SunGard BRASS.

NYSE Arca Option Fee Schedule Reductions
NYSE Arca Options will modify the “post/take” fee structure for electronic executions in all penny pilot issues, effectively lowering the “take” fee for all customers as well as providing a higher market maker rebate on incremental volume above certain liquidity provision levels.

NYSE Arca Options will reduce the liquidity “take” rate from $0.50 to $0.45 per contract for all market participants. The NYSE Arca trading system will automatically route orders to other exchanges if the national best bid and offer (NBBO) is not available on NYSE Arca. Routed orders executed at other exchanges will only be charged the reduced $0.45 “take” rate per contract. NYSE Arca Options provides a powerful combination with the lowest take fee together with deep liquidity and private smart-order routing capabilities that bring faster executions and fulfill best execution obligations.

NYSE Arca Options will provide additional incentives to NYSE Arca Market Makers for posting immediate or ultimately executed liquidity. Market Makers that achieve specific thresholds for posted, executed volume in penny pilot issues will receive additional credits.
Execution type Rebate per contract for posting “Take/Route” fee per contract
Customer $0.25 $0.45
Broker Dealer $0.25 $0.45
Market Maker $0.30 $0.45
Market Maker $0.31 for incremental volume over 1 million contracts/month $0.45
Market Maker $0.35 for incremental volume over 5 million contracts/month $0.45

Hope that's a bit of good news on a day when the Yanks' Opening Day got rained out until tomorrow. Was going to watch it in my office today and had to work instead. Can you imagine?

Today in NYSE History
31 Mar 1910 -- The NYSE's Unlisted Securities Department was abolished and its stocks - mostly industrial companies - were transferred to the regular list.