Direct Edge Update: October Pricing Changes On EDGX And EDGA

Effective October 1, 2011, Direct Edge will make the following pricing changes to EDGX and EDGA fee schedules, pending SEC approval. 

EDGX Exchange:

1. The fee to remove liquidity from EDGX will be reduced to 0.0029 per share when the following conditions are met:

• MPIDs must have an added liquidity ratio of at least 10%. The calculation for the added liquidity ratio is defined as add flags/(add flags + take flags) X 100.  Refer to footnote 12 in the EDGX Fee Schedule for complete details. 
• Rate applies to single MPIDs only. Share volume calculations for wholly owned affiliates cannot be aggregated across multiple MPIDs on a prospective basis.

When these conditions are not met, firms will receive a removal rate of $0.0030 per share. 

2. Rebate for adding non-displayed orders will be $0.0015 per share. 

3. The following new liquidity flags will be introduced:

• H – Non Displayed Orders (excluding MidPoint Match orders) = (0.0015)
• PI – Remove liquidity from EDGX book against the MidPoint Match = 0.0029
• RR – Removes liquidity when routed to EDGA using routing strategies IOCX or IOCT = 0.0007
  

Affected Liquidity Flags: 
The following liquidity flags will be updated to reflect the changes to the EDGX Fee Schedule effective October 1, 2011, pending SEC approval: 

EDGA Exchange: 
1. The rebate to add liquidity for securities at or above $1.00 will be $0.0004 per share

2. The fee to remove liquidity for securities at or above $1.00 will be $0.0007 per share

3. A new tier will be introduced for adding liquidity. 

• Firms that add more than 1% of the Total Consolidated Volume (TCV) in average daily volume for the month will receive a rebate of $0.0005 per share.  Refer to footnote 4 in the EDGA Fee Schedule for more details.

Affected Liquidity Flags: 
The following liquidity flags will be updated to reflect the changes to the EDGA Fee Schedule effective October 1, 2011, pending SEC approval: 

More Information:

• EDGA Fee Schedule for October 2011 (pending SEC approval)
• EDGX Fee Schedule for October 2011 (pending SEC approval) 
• Contact your Direct Edge Sales Representative at 201.942.8259.