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NYSE Euronext Introduces New Integrated Transaction Fee Structure Across Its Pan-European Cash Equity Markets - Customers To Benefit From Lower Cost, Simpler And More Competitive Pricing - New Pricing Plan Strengthens The Company’s Competitive Position In

Date 24/03/2009

NYSE Euronext (NYX) today announced plans for a new integrated transaction pricing structure that is intended to improve the company’s overall competitive position in Europe by simplifying and reducing fees for customers across its pan-European cash equity markets.

Effective 1st April 2009, the new integrated pricing structure will also apply to the company’s new pan-European Multi-lateral Trading Facility, NYSE Arca Europe, and its non-displayed block trading facility, SmartPool(sm). It also complements the company’s recently introduced state-of-the-art Universal Trading Platform in Europe, which offers customers a more comprehensive pan-European trading solution on an ultra-low latency platform.

Roland Bellegarde, Group Executive Vice President and Head of European Execution for NYSE Euronext, said “NYSE Euronext European customers are now able, through one single connection to our next generation Universal Trading Platform, to have access to stocks across fifteen European countries through our regulated markets, NYSE Arca Europe and SmartPool. Liquidity is key in the current climate, and our new fee structure is aimed at attracting more order flow and creating deeper liquidity.”

Characteristics of the new integrated pricing structure are as follows:

- Equity trading fees for NYSE Euronext Regulated Markets
The new equity fee structure will apply to trading on all stocks listed on the regulated cash markets of Amsterdam, Brussels, Lisbon and Paris.

The new fee schedule will be more streamlined, simpler and predictable, and will result in an overall reduction in trading fees of approximately 20% across Europe.  It will replace the current Pack Epsilon and Packs B, C and D fee structures. Exchange fees are removed.

A fixed fee will be charged per executed order instead of per trade, applying the same principle as the former Pack Epsilon fee structure. Customers will only be charged for the first execution, after which the trades originating from the same order will be free.

In case of further reduction in transaction values on the NYSE Euronext regulated markets, the new scheme introduces a cap in basis points.

- Fee structure for NYSE Arca Europe
Trading fees on NYSE Arca Europe will be based on a competitive 0.15 basis points* for all trades.

- NYSE Arca Europe Volume Incentive Scheme
Special tariffs will be made available on the regulated market in the form of a fee bridge with NYSE Arca Europe. This innovative program, designed in cooperation with clients, will provide rebated fees on the regulated market.  The more a client trades on NYSE Arca Europe, the more they will benefit from lower trading fees for NYSE Euronext-listed stocks on the regulated market.

- Fee Structure for SmartPool
SmartPool has a straightforward pricing model in basis points and as of April 1st will introduce a dedicated fee package for algorithmic DMA order flow. It also provides a very attractive routing facility with the Euronext regulated market charged at 0.5 bps per transaction.

Cees Vermaas, Executive Director Sales and Relationship Management, European Cash Markets, added “This new dramatically simplified fee schedule was developed in consultation with our members. This means our customers are better able to predict their revenue and plan their trading strategies. In addition, this encourages new growth and will help improve market quality in an increasingly competitive landscape where cost of trading is one of the key drivers.”

Notes to Editors:

* 1 basis point is equal to 100th of a percentage point, i.e. 0.01% of value traded 

Appendix A: Description of fee scheme

Regulated Market (NYSE Euronext listed equities)
Origin of flow € charge per executed order

Agency

1.40

Principal

From 1 to 550,000 executed orders per month

1.25

Above 550,001 executed orders per month

0.70

Fees are capped at 1.9 basis points for agency flow and at 0.9 basis points for principal flow. A daily order trade ratio limit of 100:1 is applied, above which orders are surcharged at €0.10 each.

 
NYSE Arca Europe

0.15 basis point charge

 
Regulated Market Charges for Bridged Volumes

Eligible bridged volumes on regulated market are equivalent to the value traded on NYSE Arca Europe, with a distinction between passive and aggressive flow on NYSE Arca Europe.

Volume equivalent provided passively on NYSE Arca Europe

0.15 basis points

Volume equivalent provided aggressively on NYSE Arca Europe

0.25 basis points

 
SmartPool

Top Committee of European Securities Regulators (CESR) Blue-chips with average daily trading (ADT ) > 50M€

1 basis point

Next CESR liquid shares

2 basis points

Algorithmic / Direct Market Access (DMA) fee package

0.5 basis points for all stocks

Routing execution fee

0.5 basis points for all stocks

No membership fee