Now that NXTD went from the most expensive to the cheapest..... it will be interesting to see what the only 2 ecn's charging over $3.00 per 1000 to take liquidity will do.
1- TRAC is still $7.00 to take and $2.25 rebate to add.... but it seems that DATA (SOES fee only to take) is the way they are going. Most firms are not paying their $7.00 per 1000 fee. Notice how they went from consistent top 5 performer in SUPERSOES to nowhere as soon as supermontage started.
2- ATTN is changing their deal daily it seems. Most firms are still not paying their ridiculous $9.00 per 1000 fee. I heard that they have just decided to give their traders $2.00 per 1000 rebate instead of the zero per 1000 that they were getting the last few months. It will be interesting to see how the ATTN can pay the rebate considering what happened to LSPD and their so-called guarantees.
In supermontage, the Attain ECN has the right to charge whatever they want and BD's have the right to pay what they want...(hopefully zero).
NexTrade Cuts Fees Amid ECN Price War
NexTrade has cut its trading fees in a sign that intense competition and pricing pressure might well remain the dominant themes for electronic communications networks and other execution venues in 2003. NexTrade changed its rates on Jan. 2, slashing fees to $2.75 per 1,000 shares executed and offering a $1.25 rebate per 1,000 shares of added liquidity. This undercuts the major ECNsâ $3 fee on the execution side. The move is reminiscent of the lower pricing structure that Island initiated a year ago, igniting a price war among the ECNs that led to its takeover by direct competitor, Instinet. Following the merger, Instinet was able to restore some pricing power and terminated Islandâs bargain-basement rates of $1.9 and $1.1 per 1,000 shares. âWhen Instinet bought Island and raised Islandâs prices, they vacated a niche that NexTrade wants to fill. Accessing NexTrade quotes through SuperMontage is now cheaper than accessing the published rate of any market-maker or large ECN,â said NexTrade CEO John Schaible. âWe hope to bring our pricing even lower. We want to be dirt cheap on SuperMontage.â Whether the fee-slashing strategy can exert the same pressure on the industry as Islandâs discounting model did last year remains to be seen. Still, by giving market participants bargaining power, NexTradeâs attractive fee structure is likely to cap pricing at the larger ECNs. NexTrade also started quoting on the National Association of Securities Dealersâ alternative display facility (ADF) on Dec. 23, joining key player Instinet there. âWe believe the ADF is a marketplace for the future,â said Schaible. âWe think our ability to simultaneously post quotes in the SuperMontage and the ADF will give NexTrade users the greatest competitive edge.â
1- TRAC is still $7.00 to take and $2.25 rebate to add.... but it seems that DATA (SOES fee only to take) is the way they are going. Most firms are not paying their $7.00 per 1000 fee. Notice how they went from consistent top 5 performer in SUPERSOES to nowhere as soon as supermontage started.
2- ATTN is changing their deal daily it seems. Most firms are still not paying their ridiculous $9.00 per 1000 fee. I heard that they have just decided to give their traders $2.00 per 1000 rebate instead of the zero per 1000 that they were getting the last few months. It will be interesting to see how the ATTN can pay the rebate considering what happened to LSPD and their so-called guarantees.
In supermontage, the Attain ECN has the right to charge whatever they want and BD's have the right to pay what they want...(hopefully zero).
NexTrade Cuts Fees Amid ECN Price War
NexTrade has cut its trading fees in a sign that intense competition and pricing pressure might well remain the dominant themes for electronic communications networks and other execution venues in 2003. NexTrade changed its rates on Jan. 2, slashing fees to $2.75 per 1,000 shares executed and offering a $1.25 rebate per 1,000 shares of added liquidity. This undercuts the major ECNsâ $3 fee on the execution side. The move is reminiscent of the lower pricing structure that Island initiated a year ago, igniting a price war among the ECNs that led to its takeover by direct competitor, Instinet. Following the merger, Instinet was able to restore some pricing power and terminated Islandâs bargain-basement rates of $1.9 and $1.1 per 1,000 shares. âWhen Instinet bought Island and raised Islandâs prices, they vacated a niche that NexTrade wants to fill. Accessing NexTrade quotes through SuperMontage is now cheaper than accessing the published rate of any market-maker or large ECN,â said NexTrade CEO John Schaible. âWe hope to bring our pricing even lower. We want to be dirt cheap on SuperMontage.â Whether the fee-slashing strategy can exert the same pressure on the industry as Islandâs discounting model did last year remains to be seen. Still, by giving market participants bargaining power, NexTradeâs attractive fee structure is likely to cap pricing at the larger ECNs. NexTrade also started quoting on the National Association of Securities Dealersâ alternative display facility (ADF) on Dec. 23, joining key player Instinet there. âWe believe the ADF is a marketplace for the future,â said Schaible. âWe think our ability to simultaneously post quotes in the SuperMontage and the ADF will give NexTrade users the greatest competitive edge.â