Nyse to cut fees for electronic Arca trades

The New York Stock Exchange (Nyse) is cutting fees for dealers routing orders through its Arca electronic trading platform as it prepares for the launch of its hybrid trading operations in October.

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Nyse to cut fees for electronic Arca trades

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The fee adjustments will cut costs for professional dealers that send trades with specific price instructions, but they may raise costs for some 'buy-and-hold' investors that don't have price limits.

Under the changes Nyse Arca will charge 30 cents per 100 shares for orders without price instructions, tripling the old fee. But in a move to attract rapid-trading dealers to the system, orders with price limits will get a rebate of 20 cents per 100 shares.

The changes do not affect Nyse floor trades.

The new fees will be introduced on 1 October, just five days before the planned initial roll-out of Nyse's hybrid market, which combines fast on-screen dealing systems with traditional floor-based market-making.

Nyse is looking to cash in on the expected surge in electronic trading following the start of the new hybrid system.

The exchange is also trying to recover market share it has lost to rival exchange Nasdaq and other electronic networks.

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