Lowest costs in Europe with HybridBook
Berlin/London/Paris 16 April 2008.
Börse Berlin Equiduct Trading is targeting the highly competitive equity trading 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 very clear and simple fee model with fixed sums for trade value bands.
In HybridBook, the order book of the new market segment, the execution fees are always related to the actual order size. The bands for the orders have been defined as follows: for an order volume up to EUR 5,000 the fee will be EUR 0.20, between EUR 5,000 and EUR 20,000 it is EUR 0.40 , from EUR 20,000 to EUR 50,000 the fee is 0.70 Euro, and above this it is EUR 1.10.
Special features of HybridBook are that there are no charges for market maker 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 the PartnerEx Module the VBBO (Volume weighted Best Bid and Offer) 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 EUR 5,000 there is a fee of EUR 1, then of EUR 1.50 from EUR 5,000 - 20,000. For volumes EUR 20,000 - 50,000 the fee is EUR 2, and for larger volumes EUR 2.50. Again, market makers do not pay for trades executed in PartnerEx.
A key difference between Equiduct Trading and competing systems is that there 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.
Börse Berlin Equiduct Trading's VBBO is always available in real time and without charge. There are no connection charges or operating fees. Only the direct access to real-time data flows for market data (Levels I and II) from the HybridBook and PartnerEx is invoiced at EUR 30 per month.
Under the market model, Equiduct's revenues will be generated mainly from trading fees. The market makers of Equiduct Trading will pay a one-off fee of EUR 6,000.
"Our fee model is clear and benefits the liquidity provider. Equiduct Trading will be transparent and attractive. With our "Me-too" product, the HybridBook, 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", explains Artur Fischer, Joint CEO of Börse Berlin Equiduct Trading.