Direct Edge Trading Notice #12-36: Fee Schedule Changes For EDGA And EDGX Effective September 1, 2012

Direct Edge will introduce the following pricing changes effective September 1, 2012, pending filing with the Securities and Exchange Commission (SEC).

Taker/Maker Fee Structure on EDGA
EDGA Exchange, Inc. (EDGA) will move to a taker/maker pricing structure, where Members will receive a rebate for removing liquidity and pay a fee for adding liquidity to the exchange. Adding and removing liquidity in securities priced under $1.00 remains free.

Tier Change
As part of this change, Members who meet the criteria for the volume tiers on EDGA will be charged a discounted add fee of $0.0005 per share. See footnote 4 in the EDGA fee schedule for details.

In addition, EDGA will discontinue the Step-Up tier for firms that posted at least 0.10% of TCV in ADV more than their July 2012 ADV added to EDGA.

Internalization
EDGA will reduce the fee for internalized trades. The internalization fee for adding or removing liquidity during regular trading hours and in the pre or post market will be $0.0001 per share per side. See table below for affected flags.

Affected Flags
The following flags will be updated to reflect the new EDGA fee structure:

Post Only Orders on EDGA
Please note that the functionality of Post Only orders on EDGA remains unchanged, which makes them ineligible for a rebate to remove liquidity. Post Only orders on the EDGA book will not remove liquidity against eligible contra orders upon arrival on the book and will always be subject to a fee for adding liquidity upon execution.

New BX Tier on EDGA
EDGA is introducing a new tier for Members that use EDGA to route to NASDAQ OMX BX (BX).  Members that add 25,000 shares or more in ADV on BX on a monthly basis will receive an increased rebate of $0.0014 per share when removing liquidity from BX through EDGA. See footnote 7 in the EDGA fee schedule for details.

EDGX Tier Changes
EDGX is restructuring the Mega Tier thresholds and will be providing an increased rebate of $0.0035 per share to Members who meet both of the following criteria:

• Add or route at least 2 million shares of ADV prior to 9:30 a.m. or after 4:00 p.m. for the month
• Add a minimum of 35 million shares of ADV for the month, including both during market hours and pre- and post-trading hours.

See footnote 1 in the EDGX fee schedule for September 2012 for additional details.

In addition, EDGX will discontinue the Mega Tape B and Mini Tape B tiers. All trading in Tape B securities will receive standard pricing and will continue to count towards other current EDGX volume tiers.

Routing to EDGA from EDGX
EDGX will update the rates for routing to EDGA to reflect the new EDGA taker/maker pricing. 

Discontinuation of MEIP
As announced in Direct Edge Trading Notice #12-33, the Message Efficiency Incentive Program will be discontinued on EDGA and EDGX effective September 1^st, pending filing with the SEC.  

More Information

• EDGA Fee Schedule for September 2012 (pending filing with the SEC)
• EDGX Fee Schedule for September 2012 (pending filing with the SEC)