INET/NASDAQ/BRUT's new pricing

S

Serge Pustelnik

Genesis Securities
--From NASDSAQ


AUDIENCE
All INET Subscribers


SUMMARY
Effective immediately, Monday, February 13, 2006, NASDAQ is changing the fee structure on all of its facilities, The Nasdaq Market Center, INET and Brut, for executions in Nasdaq-listed securities priced below $1.00. The new pricing for executions below $1.00 will be:
Charge for Removing liquidity: 0.1% (10 basis points) of the total dollar volume of the transaction
Rebate for Adding liquidity: $0.00

WHAT DOES THIS MEAN?
Effective immediately, pricing for Nasdaq-listed securities executed with a share price below $1.00 will be 0.1%, i.e., 10 basis points, of total dollar volume of the transaction to remove liquidity, and no rebate for adding liquidity.


In addition, NASDAQ is considering making this pricing retroactive to February 1, 2006. Subscribers will be notified as soon as more information becomes available.


HOW WILL THE FEE BE CALCULATED?
For example:

A subscriber removes 100 shares at a price of $0.70 per share.
The fee will be $0.70 x 100 x 0.001= $0.07 for removing liquidity.


WHY ARE YOU DOING THIS?
NASDAQ is changing the fee structure for executions in stocks priced below $1.00 in preparation for the Regulation NMS Access Rules pricing.
 
I dont think it does... What they are doing is pure illegal... news comes out... at 10:30am, wasn't even official on their website till 11am. And on top of that, they wanna make it retroactive??!?!?

Brokers must step up and put some pressure on these guys. Its gonna cost a lot of people too much money.
 
Word is that the Nasdaq is just throwing the retroactive thing out there so when enough people complain they can come back and say "due to an overwhelming response by our customers, we've decided not to make the change retroactive". Just think about it...there could be 2 possible outcomes when they announce something so ridiculous such as making the change retroactive:

1) Not very many people complain so they get to keep a whole bunch of money

2) Lots of people complain so they get to rescind their statement and look like they're "listening to the customer base".

Either way, they win.
 
Sounds reasonable... I really don't see how they could even attempt to retro that because it would not only affect a lot of trader's profits, but it would swing quite a few into a major loss.

But I'm sure they're getting one hell of an earfull from a lot of firms. If anyone hears any news/rumors etc regarding this, please post it on this thread asap. tia
 
Quote from MasterRaistlin:

Apparently some people must not have read Inet's statement because it has 92 Million volume again today...LOL
More...

Well when the release for today came out at 11am (how can they even do that?!), the volume dried right up. But obviously there are still some people who aren't in the 'loop', so to speak.
 
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