ECN Rate confusion....

Discussion in 'Order Execution' started by El OchoCinco, Jan 5, 2006.

  1. OK Here is a quote from fees on ARCA:

    Round lot orders that take liquidity from the ArcaEx Booksm in OTC, AMEX® and other Tape B listed securities

    $0.003 per share

    AND Here is a quote from INET:

    Execution Fees For NYSE and AMEX Exchange Listed Stocks (Excluding AMEX ETFs) Executed on the INET Book:

    Rebate per executed share of $.0009 for trades that remove liquidity from the INET book.

    Charge per executed share of $.0010 for trades that add liquidity to the INET book.


    Here is the question. Why is ARCA charging a fee when taking liquidity from ARCA while INET is rebating for removing liquidity?

    Or am I reading this wrong?
     
  2. alanm

    alanm

    It's correct. INET did this rebate for removing liquidity on listed stocks in order to attract more listed volume. I don't know how successful it's been, but I certainly take from INET instead of NYSE NX when appropriate.
     
  3. Thanks for the explanation, it makes sense. But trading the SPY I think I would also take from INET instead of ARCA and save those pennies.
     
  4. alanm

    alanm

    Execution Fees For NYSE and AMEX Exchange Listed Stocks (Excluding AMEX ETFs)

    Doesn't apply to ETFs, which are the same as the Naz rates.
     
  5. arca charges .003 for removing on nasdaq, on nyse I think its .001, if you remove liquidity on island on nasdaq it also charges .003
     
  6. But on INET you get a REBATE for removing liquidity....as in my original post. That is what got me asking.

     
  7. yepp but only on newyork, Brut also just started paying 1/10th of a cent a share if you sit with them, its kind of nice because for me brut passthrough is free where as ISI costs money lots more people sitting on brut now if you use these orders.
     
  8. alanm

    alanm

  9. sorry, my bad it effects a couple of the stocks I actively trade and I dont really sit on brut, don't mean to mislead. I was mistaken.