The Irish Stock Exchange has launched a radical new pricing structure which will provide significant cost savings to all firms trading in the Irish equity market.
The Exchange has also announced that UBS, one of the world’s leading investment banks, has joined the Exchange as a member.
Speaking today, Brian Healy Director of Trading and Regulation at the Exchange said that the pricing policy was clear and uncomplicated and would provide strong incentives to further encourage trading volume growth with progressive fee reductions for firms trading on ISE Xetra®, its electronic trading system. He said; “The new pricing structure is a key element of our strategic response to the Markets in Financial Instruments Directive (MiFID) and positions the Exchange as one of the most price competitive, transparent and efficient exchange operators in Europe”.
The main aspects of the pricing structure are:- Extremely competitive, flat fee of only €0.05 for the trade reporting of each over-the-counter (OTC) transaction in over 7,000 Irish and other European securities - the Exchange is now the most competitive EU Exchange for such trade reporting
- Flat rate fees for electronic order book transactions with significant volume incentives
- Average cost per ISE Xetra® execution of only €0.99 – a reduction of over 50% on previous levels
- The current pricing range per order executed on the ISE varies from €0.25 to €1.50. Previously these fees had ranged from €2.40 to €3.50.
- Very low market maker fees of only €0.25 per quote to encourage liquidity providers
- Introduction of incentives for algorithmic trading flow to ISE Xetra®
- New trade reporting (only) membership
- Reduced annual membership fees
- No admission fees for new equity trading member firms
The Exchange continues to differentiate itself on service levels and cost from other market operators by choosing to charge trading member firms a flat fee per executed order or quote, regardless of the monetary value of the transaction, rather than a fee per execution (fill). Furthermore the Exchange does not charge order management fees to trading member firms.
Market makers on ISE Xetra® are not charged any service fees or per security registration fees making the Exchange a very low cost trading venue for liquidity providers.
“The Exchange’s new pricing structure, the facilitation of algorithmic trading flow and the addition of firms such as UBS form key elements of the strategic positioning of the ISE in the post-MiFID environment. We are delighted that UBS, one of the world’s leading investment banks and already a significant player in Irish equities, has started to trade on ISE Xetra® and to directly access the Irish equities market. The Exchange is focussed on further increasing and internationalising its trading member firm base.
The new pricing structure compares extremely favourably with other trading venues and is being very well received by market participants including UBS” said Brian Healy, Director of Trading and Regulation at the ISE.
“Year-to-date equity turnover on the Exchange is now in excess of €183 billion (full year 2006: €129 billion) and the additional order flow which UBS brings will contribute further to this growth”, he added.
UBS is the leading global wealth manager, a top tier investment banking and securities firm, and one of the largest global asset managers. In Switzerland, UBS is the market leader in retail and commercial banking.
Nick Holtby, Head of European Client Trading and Execution at UBS Investment Bank added “We are very pleased to become a trading member of the Irish Stock Exchange and welcome the new pricing structure and additional liquidity we expect this will bring. UBS seamlessly connects to and routes orders across multiple trading venues to obtain the best possible execution for clients. Through the use of our next generation of smart order routing technology our clients will benefit from this significant pool of liquidity.”
