On the topic of ECN fees, does anyone know what the deal is now with LSPD. I know that it is the MarketXT ECN but apparently it is now SOES-able. It is showing up everywhere now, and I have been getting various reports on the fees for hitting it,(ie. you pay a Supersoes fee and a per share ECN fee). Can anyone clarify this? Additionally I have actually heard that LSPD may provide a rebate for adding liquidity. Anyone....??
I wouldn't worry about it too much. MXT has also almost no volume, maybe even lower than the ATTN ecn.
Htrader, I hear ya on the MXT volume but now that they have gone Soes-able and become LSPD they are always on the inside on liquid stocks. The issue here... ( for me anyways), because I am a very active scalper and use Soes a great deal is additional cost. When I use Soes I can't control who fills my order. Hence, if I get a fill from LSPD and get charged an extra fee above and beyond the Soes fee it can dramatically impact my P/L. Bear in mind, I am trading 100's of thousands of shares per day and pass-trhu fees are very important to me because my profit per share is very tight.
I don't know about the rebate but we now pay 3 per thousand for lspd and the soes fee. I don't like it, but that is what is happening for the time being
http://www.nasdaqtrader.com/trader/hottopics/nts_LiquidityProviders225.pdf ...maybe but not for too long. They're currently ranked #2, on the latest "SuperSoes liquidity Providers" list, from Nasdaqtrader.com. This will continue to be the case until (if/when) SuperMontage is released this July. Then people/traders will have a choice to execute by either Price/Time priority (default option) or by Price /Time priority WITH access fees taken into consideration. This will inevitably push LSPD further outside of the Bid/Ask spread, allowing other Exchanges/ECNs not participating in the SM scheme (scam) to grab more of the liquidity on the inside market. Here's an FAQ on the SM: http://www.nasdaqtrader.com/trader/hottopics/supermontage/smfaqs.pdf samtrader
How in the hell can MXT do that anyways. I mean, what happens when MM's decide to start charging a per share fee to access their liquidity. Starting to think I should start my own ECN, make it SOESable and charge 5 cents/ share for accessing my liquidity. When it is SOESable you can't trade around it. It becomes the inside price when it sits there so you have to get taken out sooner or later. I just think that LSPD should not be able to have it both ways. Either it's a Soes fee or an ECN fee, not both. You would think that the NASD would have some kind of issue with this.
Well, I do agree with you, from a traders perspective. But Nasdaq is (or soon will be ) a "For Profit Corporation" so it's in their best interest to have as many liquidity providers joining their SS and future SM scheme (scam) as possible. Makes perfect business sense...for them, that is. Now you're talking! Where do I sign up!? lol samtrader
I've gotten two calls from people purporting to be interested in the "rebate" offered by these people. I guess like anything else that is new, if it starts to be viable, we will be using it. If not, then we won't.