Having listened to potential clients requirements and opinions, Börse Berlin Equiduct Trading has decided to review its pricing structure for the launch of the new execution venue later this year. The regulated market will move to a maker/taker structure rather than the innovative (but less straightforward to compare easily with other venues) fixed sums for trade value bands fee model.
Artur Fischer, Joint CEO of Börse Berlin Equiduct Trading explains the change. “We have always stated that our fees will be both attractive to our participants and transparent in accordance with MiFID. This fundamental requirement has not changed but we have listened to the market and understand that in these times of diminishing price spreads liquidity providers expect to receive some recognition for their support for our market”
Equiduct Trading market model has two segments. In the HybridBook, an open order book, an aggressive execution, where an incoming order hits an order that has been placed on the HybridBook resulting in an execution, will be charged 0.30bps points. While a passive execution, when an order is placed on the HybridBook and a trade executes as a result of being hit by an incoming order, will be rebated at 0.15bps.
PartnerEx Module is the premium product of Equiduct Trading. In the PartnerEx Module the VBBO (Volume weighted Best Bid and Offer) is available as the guaranteed best price. The VBBO is calculated from simulated partial executions on the relevant European reference markets LSE, XETRA, NYSE Euronext and Chi-X. New markets such as Turquoise or NASDAQ/OMX European Blue Chips will also be taken into consideration in the VBBO calculation of Equiduct Trading. The PartnerEx agreements between market maker and order-flow providers guarantee the best transaction on the basis of VBBO for every individual order and allow price Improvements. Together, the two parties can select the most cost-effective clearing and settlement mechanism, or they may prefer to by-pass the clearing phase altogether, bringing down the post-trade expenditure still further. The charge for these services, which are unique on the European market, will be 0.70bps with a minimum fee of EUR 0.50 and a ceiling of EUR 15.00.
Equiduct Trading Market Data is available with no connection charges or operating fees. VBBO is available in real time and without charge. Only the direct access to real-time data flows for market data (Levels I and II) from the HybridBook and PartnerEx is invoiced at EUR 30 per month, delayed data is available free of charge.
The market participants of Equiduct Trading will pay a one-off regulated market membership fee of EUR 6,000.
