Direct Edge is introducing the following fee schedule changes on EDGA Exchange, Inc. (EDGA) and EDGX Exchange, Inc. (EDGX) effectiveTuesday, May 1, 2012, upon filing with the Securities and Exchange Commission (SEC).
Reduced Midpoint Routing Fees on EDGA
Effective May 1, 2012, the fee for routing shares via the Midpoint Route (RMPT) strategy will be reduced to $0.0012 per share. This new rate will be returned with the PX flag.
In addition, Direct Edge is introducing a new tier for firms using the RMPT strategy. Firms that execute more than 2 million shares in average daily volume (ADV) for the month using the RMPT strategy will receive a reduced rate of $0.0008 per share to route and remove liquidity, returning the PT and PX flags, respectively. Firms that hit this tier will be able to add liquidity using the RMPT strategy for free, returning the PA flag.
Refer to Direct Edge Trading Notice #12-12 for more information about the RMPT strategy.
Update to Investor Tier on EDGX
In April, Direct Edge introduced an Investor Tier designed to incentivize liquidity providers that contribute to price discovery with more static quotes. Members that meet all of the criteria receive an increased rebate of $0.0030 per share. Effective May 1st, the new criteria will be as follows:
1. Post an ADV of at least 8 million shares on EDGX, measured monthly
2. Maintain an added to removed liquidity ratio of at least 70%
3. Maintain a message-to-trade ratio of less than 6:1
Refer to footnote 13 in the EDGX Fee Schedule for May 2012 for more information.
RA Flag on EDGX
Effective May 1st, the rebate for the RA Flag to route to EDGA and add liquidity will be $0.0003.
New Flag on EDGA and EDGX
Effective May 1st, Direct Edge is introducing Flag BB on both EDGA and EDGX. This flag will be returned when firms remove liquidity in Tape B securities. Accordingly, the N flag will also be updated to be returned only when removing Tape C securities. Currently no rates are affected as a result of the addition of the new flag.
More Information
- EDGA Fee Schedule for May 2012 (upon filing with the SEC)
- EDGX Fee Schedule for May 2012 (upon filing with the SEC)