Nasdaq OMX has outlined the pricing structure for its new pan-European multilateral trading facility (MTF) which will - in the majority of cases - make it less expensive to route orders through the platform than to trade on the primary markets.
The pricing structure covers orders matched on the Nasdaq OMX Europe platform as well as orders that are routed to other venues and includes an all-inclusive fee of 0.65 basis points to trade on the London Stock Exchange (LSE).
Charlotte Crosswell, president, Nasdaq OMX Europe, says in most cases the pricing structure will make it less expensive to route an order through Nasdaq OMX Europe than to trade directly on the primary markets.
"By routing through Nasdaq OMX Europe, we will offer the opportunity to access liquidity on our own order book as well as a greater likelihood of gaining best execution and price improvement at a lower cost," says Crosswell.
The pricing for matching orders will follow a "maker/taker" model which will see it provide a rebate of 0.2 basis points of the order value for participants who add liquidity on the market by posting sale or purchase orders on the book, and charge 0.3 basis points for participants who remove liquidity from the market, or match orders on the book.
Nasdaq OMX has recruited Citi to provide electronic routing of orders from its new pan-European platform to other exchanges and venues across the region. Earlier this week the exchange said the deal with Citi will make Nasdaq OMX Europe platform the first MTF to provide a pan-European order routing service.
The new pricing details come in the same week that the London Stock Exchange slashed price tariffs and introduced incentives for liquidity providers in a bid to attract algorithmic traders and fight off competition from alternative trading systems - like Nasdaq OMX Europe, Borse Berlin Equiduct, Chi-X Europe and the recently launched Turquoise platform.
Deutsche Börse is also introducing a new pricing and discount model this month in an attempt to boost algorithmic trading on its Xetra platform.