CBOE Stock Exchange (CBSX) drops taker fee significantly

 

CBOE Stock Exchange (CBSX) Drops Taker Fee Significantly

22/09/09

The CBOE Stock Exchange, LLC (CBSX) today announced that the Exchange 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 percent of the Exchange's 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 percent to further reduce the transaction costs of its customers, as well as to attract new rate-sensitive customers to CBSX's 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," said CBSX CEO David Harris. "Now we're 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."

For more information on the revised fee schedule, please refer to http://www.cbsx.com/.