Mostly… fixed income and cross product eTrading

August 24, 2007

BATS inverts fees again

Filed under: etrading — holky @ 7:12 pm

Seeking to repeat the success of its January fee special, only this time focusing on New York Stock Exchange-listed shares by dangling an even larger carrot, BATS Trading will institute an inverted fee schedule paying liquidity providers a full $0.0034 per share.

That compares to a $0.003 per-share rebate in January, which the fast-growing electronic communications network (ECN) coupled with a $0.002 per-share fee for taking liquidity or routing to another liquidity center. The September special will maintain the current $0.0024 per share to take liquidity and $0.0026 per share for routing trades to other liquidity centers.

The rebate is $0.0012 higher than the current $0.0022. BATS limited the first special until either the end of January or until cumulative trade volume reached 5 billion shares, a target it reached with a day or two to spare. At a loss of $0.001 per share, the special ended up costing the Kansas City-based operation $5 million.

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