Tuesday, January 20, 2015

Equity Trader Alert #2015 - 10
Nasdaq Amends Access Fee Program

Category:

  • Pricing

Markets Impacted:

Contact Information:

Resources:

As announced in Equity Trader Alert #2014-102, effective Monday, February 2, 2015, Nasdaq will implement the below, experimental pricing schedule for lowered access fees in the following 14 symbols ("Select Symbols"). The purpose of this equity trader alert is to inform market participants of a change in the symbols. AVNR has been removed and replaced with MU. The Select Symbols are outlined as follows:

    Nasdaq-Listed NYSE-Listed
    AAL
    BAC
    MU
    GE
    FEYE
    KMI
    GPRO
    RAD
    GRPN
    RIG
    SIRI

    S

    ZNGATWTR

    As explained in the SEC rule filing, the experimental fee reduction proactively implemented by Nasdaq will generate much-needed data about the impact of access fees on areas that matter most to investors such as the level of off-exchange trading, price discovery, trading costs, displayed liquidity, and execution quality.

    Nasdaq believes that a data driven, empirically-based review of the impacts of fees and rebates on market quality is the sound and prudent method to drive the equity markets toward improved market structure.

    Based on continued industry feedback in support of the Select Symbol program, Nasdaq has modified the proposed pricing as follows:

      Fee/ Rebate
      Rate per Share
      Liquidity Code
      Fee to Remove Liquidity
      $0.0005 6
      Rebate to Add Displayed Liquidity
      $0.0004 4
      Rebate to Add Non-Displayed Midpoint
      $0.0002 g
      Rebate to Add Other Non-Displayed Liquidity
      $0.0000 5

      Nasdaq intends to have the Select Symbol program active for no less than four months. Any changes to Nasdaq's intended plans will be subject to SEC filing. 

      Periodically, Nasdaq’s Economic and Statistical Research Group intends to make public via an Equity Trader Alert the results of the above on-going program. Statistics to be analyzed and discussed are changes in market share, displayed liquidity, effective spreads, and volatility amongst other metrics.



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      Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 90 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to approximately 3,900 total listings with a market value of approximately $12 trillion. To learn more, visit: business.nasdaq.com.