Chi-X® Europe Limited, operator of the largest pan-European equity multilateral trading facility (MTF), today published the findings of its analysis of the new NYSE Euronext trading tariffs as compared to Chi-X Europe’s.
The analysis, which adopted Tower Group’s cost methodology[1]exclusive of clearing costs, found Chi-X Europe tariffs to be between 18-28 times cheaper than the new NYSE Euronext trading tariffs,
Tower Group’s research compared trading costs among Chi-X Europe, Deutsche Boerse, London Stock Exchange and NYSE Euronext and detailed their findings in a February 2009 report. The study found Chi-X Europe to be 15-21 times cheaper, exclusive of clearing costs[2], than the NYSE Euronext trading tariffs at the time of analysis.
Commenting on the findings, Mark Howarth, Interim CEO of Chi-X Europe, said, “We anticipated that the exchanges would make some fee adjustments given Chi-X Europe’s growing market share, and we are pleased to find that Chi-X Europe trading fees today are now even more competitive than NYSE Euronext’s. Prior to these changes, we were around 15-21 times cheaper according to Tower Group. Today, we are 18-28 times cheaper.”
“Chi-X Europe set out to build a liquid alternative execution venue that would improve the overall efficiency of the markets. While our trading participants have been pleased with the results they’ve achieved on Chi-X Europe, they remain frustrated by the tariffs levied by the incumbent exchanges,” said Graham Dick, Head of Business Development for Chi-X Europe. “We believe the increased fee differential between Chi-X Europe and NYSE Euronext will drive even more trading participants to Chi-X Europe to take advantage of our deep order book liquidity, low costs and potential price improvement.”
[1] Based on a 50:50 passive/aggressive ratio and whether the trading firm was operating an agency or principal trading model
[2]Variation is dependent on the value of stock traded.A summary of the TowerGroup research can be found at www.chi-x.com/news/TowerGroup%20Final.pdf.
