The CBOE Stock Exchange, LLC (CBSX) will significantly reduce its fee for taking liquidity, beginning on October 1, 2009.
For stocks trading above $1.00, taker fees on CBSX will decrease to $0.0010 from $0.0030 per share, and liquidity rebates will be reduced to $0.0005 from $0.0025 per share. CBSX will continue to rebate to liquidity providers 50% of the Exchanges market data revenue from both quotes and prints. It is the only U.S. securities exchange to offer a rebate of this kind.
CBSX launched in 2007 as a multi-asset trading model for Chicago-based traders looking to reduce transaction costs and latency related to the hedging of options and futures market-making. Now, CBSX is cutting its taker fee by 66% to further reduce the transaction costs of its customers, as well as to attract new rate-sensitive customers to CBSXs National Best Bid and Offer (NBBO) quotes.
Since its inception, CBSX has done an excellent job of attracting a diverse group of committed liquidity providers because of the unique trading opportunities presented by stock-options-futures trading, says CBSX CEO David Harris. Now were taking bold steps in pricing that will make CBSX the lowest-cost exchange among those charging a taker fee, further incenting those who seek to take liquidity to choose CBSX.
D.C.