Which ECNs still exist?

[alanm]

Note that those cancel fees were for SOES/SNET, though they could easily be as outdated as the rest of the list.

It would be great to get an accurate list together. Please post if you have direct knowledge of the fees that are actually charged by the exchange/ECN (e.g. from their website or current ratecard). Please remember that charges for listed (i.e. NYSE/AMEX) stocks and ETFs are often different than NASDAQ.

Here's my contribution:

(source: http://www.tradearca.com/exchange/fees.asp effective 2004-03-16)
-0.002 ARCA add OTC/AMEX (round or mixed-lot)
0.003 ARCA take OTC/AMEX (round or mixed-lot)
0.004 ARCA take OTC/AMEX routed away (round or mixed-lot)
0.004 ARCA add/take OTC/AMEX odd-lot
0.000 ARCA add NYSE (round or mixed-lot)
0.001 ARCA take NYSE (round or mixed-lot)
0.001 ARCA take NYSE routed away (round or mixed-lot)
0.030 ARCA add/take NYSE odd-lot

(source: http://www.inetats.com/prodserv/bd/fee/fee.asp effective 2004-03-29)
-0.002 INET add OTC/ETF
0.003 INET take OTC/ETF
0.000 INET add/take NYSE/AMEX (non-ETF)

Notes:
"take" means your marketable order executes against an existing order on the book.
"add" means you post a non-marketable bid or offer on the book that someone else subsequently executes against.
OTC = NASDAQ-listed
AMEX = AMEX-listed (including ETFs unless otherwise specified)
NYSE = NYSE-listed
ETF = AMEX-listed ETFs (e.g. QQQ, SPY, DIA)
0.003 means charge of $0.003 per share
-0.002 means rebate of $0.002 per share

 

[OHR]

Using alanm's terms, BRUT's base rates:

-.002 to add OTC/ETF/NYSE
.0027 to remove OTC/ETF/NYSE
.004 to take OTC/ETF/NYSE routed away

Brut is the lowest to remove and rebates for adding in NYSE stocks.

 

[EricP]

Those are the correct BRUT posted rates, as I talked with a BRUT sales rep yesterday. However, BRUT is aggressively seeking to increase market share, and are willing to improve on these rates as well. For a trader or broker dealer, there is a trade-off. On one hand, you will pay lower ECN costs and get increased rebates (as compared with other ECN's), but on the other hand, their lower market share will result in fewer of your non-marketable (add liquidity) orders being hit, as well as more marketable (remove liquidity) orders being routed outside the BRUT ECN for the higher external routing charge.

One advantage of BRUT versus INET or ARCA, however, is that BRUT is a participant in the SuperMontage system, which allows your orders to get hit by incoming SuperMontage marketable orders (this is not the case with ARCA and INET).

Does anyone have a recent link to the market share on Nasdaq (each ECN, SuperMontage, etc)?

-Eric

Quote from OHR:

Using alanm's terms, BRUT's base rates:

-.002 to add OTC/ETF/NYSE
.0027 to remove OTC/ETF/NYSE
.004 to take OTC/ETF/NYSE routed away

Brut is the lowest to remove and rebates for adding in NYSE stocks.

 

[SethArb]

either of the SSF exchanges would pay for liquidity
order flow or even volume of trades

ONE
NQLX

they sure could use some more volume

 

[realstockaddict]

I get so confused with snet.. what exactly is snet? Could anyone clarify? thanks...

 

[OHR]

is the acronym for the old Nasdaq SelectNet system, which hasn't existed for a couple of years (since SuperMontage came out).

 

[OHR]

You are right about BRUT being willing to improve on their rates, but I'd disagree whether there are any trade-offs. One of the positives of Brut having the lowest rate to remove is that many active traders, and even major brokers (who use smart-routing technology like BRASS, Lava, and RoyalBlue) remove liquidity from BRUT first when several ECNs are at the same price. That means you can often get filled quicker on Brut.

Here's what I know of current ECN market share:

ARCA: about 25% (see their IPO document on the SEC's web site)

INET: about 29% (from press release at www.instinetgroup.com)

BRUT: about 13% (see company web site at www.ebrut.com)

SUMO: Nasdaq doesn't publish this stat anymore, but last time they did it was about 16%

Quote from EricP:

Those are the correct BRUT posted rates, as I talked with a BRUT sales rep yesterday. However, BRUT is aggressively seeking to increase market share, and are willing to improve on these rates as well. For a trader or broker dealer, there is a trade-off. On one hand, you will pay lower ECN costs and get increased rebates (as compared with other ECN's), but on the other hand, their lower market share will result in fewer of your non-marketable (add liquidity) orders being hit, as well as more marketable (remove liquidity) orders being routed outside the BRUT ECN for the higher external routing charge.

One advantage of BRUT versus INET or ARCA, however, is that BRUT is a participant in the SuperMontage system, which allows your orders to get hit by incoming SuperMontage marketable orders (this is not the case with ARCA and INET).

Does anyone have a recent link to the market share on Nasdaq (each ECN, SuperMontage, etc)?

-Eric

 

[EricP]

Very good point. Thanks for the information and viewpoint.
I would assume that even the ARCA smart routing system would route to BRUT before it routes to INET, for example.

-Eric

Quote from OHR:

You are right about BRUT being willing to improve on their rates, but I'd disagree whether there are any trade-offs. One of the positives of Brut having the lowest rate to remove is that many active traders, and even major brokers (who use smart-routing technology like BRASS, Lava, and RoyalBlue) remove liquidity from BRUT first when several ECNs are at the same price. That means you can often get filled quicker on Brut.

Here's what I know of current ECN market share:

ARCA: about 25% (see their IPO document on the SEC's web site)

INET: about 29% (from press release at www.instinetgroup.com)

BRUT: about 13% (see company web site at www.ebrut.com)

SUMO: Nasdaq doesn't publish this stat anymore, but last time they did it was about 16%

 

[trade4succes]

for firms doing over a zillion shares per day inet is 2.5 tenths afaik

 

[joe_blo]

Correct.

From http://inetats.com/prodserv/bd/fee/fee.asp:

• Rebate per executed share of $.0025 for trades that add liquidity to the INET book for Subscribers that for a calendar month have an average daily share volume for executed orders: (1) exceeding 30 million shares of added liquidity; (2) exceeding 30 million shares of removed liquidity and routed volume; or (3) exceeding 50 million shares combined of added, removed and routed.