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Dedicated fee package for high frequency trading on Euronext cash markets
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Amsterdam, Brussels, Lisbon, Paris – 5 June 2008 - NYSE Euronext (NYX) today announced the implementation of a customized and innovative fee package that will reduce fees by up to 30% for high frequency trading on its European cash equity markets.
This new fee package, known as Pack Epsilon, will be effective from 1st July 2008 for all stocks listed on Euronext Amsterdam, Brussels, Lisbon and Paris to address the growing demand of high frequency trading.
In order to address the unique characteristics of high frequency trading, the new Pack Epsilon pricing will allow eligible clients to increase their order flow in Euronext stocks while being charged for the first partial order execution only, rather than being charged 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 significantly their order flow capacity without incurring a transaction fee.
Pack Epsilon will only be eligible to those high frequency traders that have the specific regulatory "dealer" status and that comply with Euronext auditing rules.
"This innovative pricing Pack Epsilon 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. This initiative reinforces the attractiveness of Euronext cash markets and enhances liquidity for the benefit of all our customers," said Roland Bellegarde, Group Executive Vice President and head of European Execution, NYSE Euronext.
Description of Pack Epsilon Trading Fees Fixed fee per tier:
* Tier 1: €1.20 per executed order
* Tier 2: €1.00 per executed order with a Minimum Activity Charge ("MAC") at €250 000 per month
* Tier 3: €0.75 per executed order with a MAC at €400 000 per month
* Tier 4: €0.50 per executed order with a MAC at €600 000 per month
- Only the first partial execution in connection with the same order is charged
- Order-to-trade ratio at 30:1
Example: assuming a high frequency trader eligible for Pack Epsilon executes 400 000 orders on Euronext in a month, including 300 000 executed orders and 100 000 partial executions, the trader will be charged the following fee (depending on the Tier chosen at the beginning of the month):
- Tier 1: €360 000 (300 000 orders x €1.20 per order)
- Tier 2: €300 000 (higher of (i) 300 000 orders x €1.00 per order; and (ii) MAC of €250 000)
- Tier 3: €400 000 (higher of (i) 300 000 orders x €0.75 per order; and (ii) MAC of €400 000)
- Tier 4: €600 000 (higher of (i) 300 000 orders x €0.50 per order; and (ii) MAC of €600 000)
In the current example, Tier 2 is the optimum choice.
Notes to Editors:
About NYSE Euronext
NYSE Euronext (NYX) operates the world’s leading and most liquid exchange group, and seeks to provide the highest levels of quality, customer choice and innovation. Its family of exchanges, located in six countries, includes the New York Stock Exchange, the world's largest cash equities market; Euronext, the Eurozone's largest cash equities market; Liffe, Europe's leading derivatives exchange by value of trading; and NYSE Arca Options, one of the fastest growing U.S. options trading platforms. NYSE Euronext offers a diverse array of financial products and services for issuers, investors and financial institutions in cash equities, options and derivatives, ETFs, bonds, market data, and commercial technology solutions. NYSE Euronext's nearly 4,000 listed companies represent a combined $ 30.9/ € 19.8 trillion in total global market capitalization (as of April 30, 2008), more than four times that of any other exchange group. NYSE Euronext's equity exchanges transact an average daily trading value of approximately $161.9 / €106.9 billion (as of April 30, 2008), which represents more than one-third of the world's cash equities trading. NYSE Euronext is part of the S&P 500 index and the only exchange operator in the S&P 100 index. For more information, please visit www.nyx.com <http://www.nyx.com/> .
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning NYSE Euronext’s plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on NYSE Euronext’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause NYSE Euronext’s results to differ materially from current expectations include, but are not limited to: NYSE Euronext’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Euronext’s reference document for 2007 ("document de référence") filed with the French Autorité des Marchés Financiers (Registered on May 15, 2008 under No. R. 08-054), 2007 Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission or the French Autorité des Marchés Financiers. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Euronext that the projections will prove to be correct. This press release speaks only as of this date. NYSE Euronext disclaims any duty to update the information herein.
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