.jpg)
After a recordbreaking start to 2010, with message volumes and participants at an alltime high, EMXCo have today announced major price reductions to its EMX Message System tariff and annual fee effective from June 1 st 2010.
Following on from the price reductions in 2008, 2009 and most recently in January 2010, EMXCo will be introducing a slidingscale tariff for fund providers, starting at £2.50 per order for the first 5,000 orders per month and reducing to the lowest band of £0.75 per order for volumes over 25,000 per month. This means in some cases providers could benefit from savings of up to 30% on the previous tariff.
In addition to the reduction in message charges, the annual fee will also be reduced by £900 to £18,000 per year.
Euroclear and EMXCo have always been committed to reducing fees to reflect economies of scale. Participants that receive over 100,000 order messages in a billing year will now benefit from a loyalty scheme, which will see their £18,000 annual fee waived for the following billing year.
For those EMXCo participants that prefer a lower annual fee, an alternative tariff schedule with a lower annual fee of £5,000 together with a slightly higher message fee will be available. This option will also be a slidingscale tariff, starting at £2.70 per order for the first 20,000 order messages per month and reducing to £1.50 per order for volumes over 20,000 per month.
Alan Hawthorn, Global Head of Investor Services at Aberdeen Unit Trust Managers Ltd, comments: ‘Having worked with EMXCo for many years we are delighted that they have added this flexible tariff option to meet the needs of its clients.’
The exchange has this year reorganised itself into three distinct groups: equities trading and listing, global derivatives, and technology and data. NYSE Euronext expects dramatic growth from technology and data, according to its chief financial officer Michael Geltzeiler. The exchanges see technology supply as a steady source of income whereas the profitability of their primary sources of revenue – their listing and trading units – is dictated by economic factors out of their control.
This has been brought into stark relief since the financial crisis of late 2008 because volumes in some of their most actively traded markets have dried up.
‘Both EMXCo and Euroclear have a proven track record of driving down client costs as volumes grow. I am delighted to be able to reward all those EMXCo participants that have fuelled our phenomenal growth with yet another price reduction. This is also an important step for us as we have listened to our clients’ needs and introduced tariff options to make our services even more accessible to all clients, regardless of size and volumes.
With our joint automated settlement service now live and the second phase of the ISO messaging capability about to be completed, we are in a strong competitive position. Our list of clients and their support demonstrates that proven infrastructure capability at low costs is the natural choice for automated fundtransaction processing.
With the levels of support we are seeing across the industry, future growth will enable us to drive down costs even further for both order routing and settlement.’
To date this year, volumes of messages through the EMX Message System have increased by 38% to 9.4 million compared with the same period in 2009.
