Boerse Berlin Equiduct Trading is targeting the highly competitive equitytrading market with low and transparent charges.
The price model has been announced for Equiduct Trading, which will be launched in the middle of the year. In contrast to other trading platforms, Equiduct Trading will dispense with percentage based calculations and will instead be offering a simple fee model with fixed sums for trade value bands.
In HybridBook, the order book of the new market segment, the executionfees are always related to the actual order size. The bands for the ordershave been defined as follows: for an order volume up to 5,000 the feewill be 0.20, between 5,000 and 20,000 it is 0.40, from 20,000 to 50,000 the fee is 0.70, and above this it is 1.10.
Special features of HybridBook are that there are no charges for marketmaker transactions or for Principal Passive Orders, with “Immediate or Cancel Orders” the charge is only levied for the actual value traded.
PartnerEx Module is the premium product of Equiduct Trading. In thePartnerEx Module the Volume weighted Best Bid and Offer (VBBO) is available as the guaranteed best price. The VBBO is calculated from simulated partial executions on the relevant European reference markets LSE, XETRA, NYSE Euronext and Chi-X.
New markets such as Turquoise or NASDAQ/OMX European Blue Chips will also be taken into consideration in the VBBO calculation of Equiduct Trading. The PartnerEx agreements between market maker and order-flow providers guarantee the best transaction on the basis of VBBO for every individual order and allow price Improvements.
Together, the two parties can select the most cost-effective clearing and settlement mechanism, or they may prefer to by-pass the clearing phase altogether, bringing down the post-trade expenditure still further.
Charges for these services, which are unique on the European market, are as follows: for a volume up to 5,000 there is a fee of 1, then of 1.50 from 5,000 – 20,000. For volumes 20,000 – 50,000 the fee is 2, and for larger volumes 2.50. Market makers do not pay for trades executed in PartnerEx.
A key difference between Equiduct Trading and competing systems is thatthere are no charges for partial executions. However long the order remains incomplete on the HybridBook, it is only necessary to pay for the first partial execution. If there are further executions for parts of this order, no additional charges are made.
Boerse Berlin Equiduct Trading’s VBBO is always available in real time andwithout charge. There are no connection charges or operating fees. Only the direct access to real-time data flows for market data fromthe HybridBook and PartnerEx is invoiced at 30 per month.
Under the market model, Equiduct’s revenues will be generated mainly fromtrading fees. The market makers of Equiduct Trading will pay a one-off fee of 6,000.
“Our fee model is clear and benefits the liquidity provider. EquiductTrading will be transparent and attractive. With our “Me-too” product, theHybridBook, we are establishing a leading position for prices in Europe. And the fees for our premium product PartnerEx correspond to the cost advantages we generate for customers. With this we want to adopt a successful competitive position”, says Artur Fischer, joint CEO, Boerse Berlin Equiduct Trading.