Commentary

Elaine Wah

Modern Markets, Modern Metrics - A Blog By IEX

In this blog by IEX's Elaine Wah, the newest public exchange looks to refute public claims that the metrics it uses are designed to inflate its own volume numbers and mislead people.

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March 1, 2003

Dealers Will Pay For Liquidity

By Staff Reports

BrokerageAmerica will now impose liquidity fees on some Nasdaq orders submitted by its broker dealers. The fee will not be applied to Pink Sheets and Bulletin Board business. Broker dealers will not be charged for any not held orders of 2,500 shares or greater. Every held order, under the new schedule, and not held order of 2,500 or less, will be charged a penny per share.

BrokerageAmerica officials said they don't expect any substantial clients to be driven away by the liqudity fee.

"This move is in response to the market climate as well as the development of ECNs and decimalization," said Drew Sycoff, chief executive of BrokerageAmerica. "We're not afraid to do this because we believe our clients will understand."

He said other institutional players have been waiting for someone to impose this kind of fee and predicted that others would follow his firm's move.