NYSE Amex is tossing off its mantle as the exchange with the most conservative pricing. For three months starting in October, Amex will offer participants inverted pricing in a bid to draw volume through its doors.
On Oct. 1, Amex will begin paying liquidity providers 30 cents per 100 shares, up from the current rebate of 15 cents. The rebate will apply to displayed and non-displayed orders. The take fee will remain the same for all securities, at 25 cents per round lot. NYSE Euronext, which operates Amex, said the pricing will be in effect for at least three months.
Amex currently has the widest spread of all market centers for all customers. The difference between its take fee for liquidity removers and its rebate for liquidity providers is 10 cents per 100 shares for all customers. On most markets, the spread is less than half of that. While its pricing special is under way, Amex’s will lose a nickel per round lot on most trades.
In August, NYSE Group’s market share for Tape B, or NYSE Arca-listed and Amex-listed securities, was 23.3 percent. Arca accounted for the vast majority of that, with Amex contributing less than 2 percentage points, according to data from research firm Equity Research Desk.
Since April, NYSE Group’s market share in Tape B securities, which include NYSE Arca- and Amex-listed names, has hovered around 23 to 24 percent. Nasdaq OMX Group and BATS Exchange have increased their share a point or two since May. Direct Edge, in contrast, has lost 2.7 percentage points of Tape B share since May, according to data from Barclays Capital. This is the only segment of the market in which Direct Edge has lost traction over the last four months.
