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Direct Edge is introducing the following fee schedule changes on EDGA Exchange, Inc (EDGA) and EDGX Exchange, Inc (EDGX) effective Monday, April 2, 2012, upon filing with the Securities and Exchange Commission (SEC).
Reduced Take Fees on EDGA
- Members will be able to remove liquidity for free on EDGA when sending orders usingComprehensive Liquidity Check (CLC)-eligible routing strategies. Non-CLC eligible routable orders will continue to incur a fee of $0.0007 per share.
- New flags will be introduced to support the new remove rates on EDGA as indicated in the chart below.
- Note: The Mid-Point Route strategy (RMPT) will return the PT flag for a rate of $0.0010 per share when removing liquidity from EDGA.
|
Flag |
Description |
Eligible Strategies |
Rate |
Exchange |
|
CR1 |
CLC and street destinations |
ROUT, ROUE, ROUC, ROCO, RDOT, ROOC, IOCT, ICMT |
FREE |
EDGA only |
|
PR1 |
CLC only |
ROUZ, ROUD, ROUQ |
FREE |
EDGA only |
|
XR |
Does not route to CLCs |
ROUX, RDOX, ROPA, INET, ROBB, ROBY, ROBX, ROBA, SWPA, SWPB, SWPC, ROLF, IOCX, IOCM |
$0.0007 |
EDGA only |
New Investor Tier on EDGX
Direct Edge is introducing a new Investor Tier on EDGX. This tier is designed to incentivize liquidity providers that naturally contribute to price discovery with more static quotes. Members that meet all of the following criteria will receive an increased rebate of $0.0030 per share:
- Post an ADV of at least 8 million shares on EDGX, measured monthly
- Maintain an added to removed liquidity ratio of at least 70%
- Maintain a message-to-trade ratio of less than 4:1
New Rates for ROUE Strategy
Direct Edge will introduce reduced rates for Members that utilize the ROUE routing strategy. The ROUE routing strategy provides efficient access to liquidity by simultaneously accessing liquidity from the displayed markets before routing to select CLCs if the order is not filled by the originating exchange.
Affected Flags
|
Flag |
Description |
Rate |
Exchange |
|
K |
Routed to BATS BZX Exchange using ROBA routing strategy (EDGX + BATS) |
$0.0025 |
EDGA & EDGX |
|
BY |
Routed to BATS BYX Exchange, removes liquidity (using routing strategies ROUC, ROBY or ROUE) |
($0.0002) |
EDGA & EDGX |
Internalization Update
Direct Edge has replaced the E flag with EA and ER flags on EDGA and EDGX. The new flags will differentiate between added and removed internalized liquidity. There has been no change to the rates for internalized trades on EDGX. The rate for all internalized trades on EDGA will now be $0.0002.
|
Flag |
Description |
Exchange |
|
EA |
Internalization, adds liquidity |
EDGA & EDGX |
|
ER |
Internalization, removes liquidity |
EDGA & EDGX |
|
5 |
Internalization, pre & post market, per side |
EDGA |
Q Flag Update
Direct Edge is introducing new rates for using the ROUQ routing strategy via EDGA. ROUQ leverages our Super Fast CLC, a latency-sensitive way to expose your order to dark pools.
|
Flag |
Description |
Tier |
Rate |
Exchange |
|
|
Q |
Routed using ROUQ or ROUC routing strategies |
Add more than .30% of TCV in ADV |
Execute more than 2.5 million shares using either ROUC or ROUQ |
$0.0015 |
EDGA |
|
Execute more than 5 million shares using ROUC or ROUQ |
$0.0010 |
||||
More Information
- EDGA Fee Schedule for April 2012 (pending filing with the SEC)
- EDGX Fee Schedule for April 2012 (pending filing with the SEC)
- FIX Specifications
- Edge XPRS Specifications
- Direct Edge Sales Team at 201.942.8259
1 The removal rate on EDGA is contingent on the attributed MPID adding (including hidden) and/or routing a minimum average daily share volume, measured monthly, of 50,000 shares on EDGA. Any attributed MPID not meeting the aforementioned minimum will be charged $0.0030 per share for removing liquidity from EDGA for securities priced $1.00 and over and 0.20% of dollar value for securities priced less than $1.00.
