Non-display fees

Discussion in 'Automated Trading' started by Joan, Oct 6, 2016.

  1. Joan


    Hi everyone,

    I'm developing an automated trading system and I'm also hitting a problem named Non-display fees.

    I'm looking for an API to connect my system to but in some cases I'm being asked to pay absurd fees just because I want to access the market in a 'Non-display fashion'.

    Lightspeed trader c++ api, 6000$/month to access NYSE
    Hold brothers, Sterling Trader, API access is denied since 2009.

    I've seen others in this forum as well. Someone said that NYSE is auditing platform vendors that offer API access to increase their fees.

    Is this really going to get this ugly?

    I've recently subscribed to IQFeed, is it also going to get hit?
    What about IB TWS API?
  2. Robert Morse

    Robert Morse Sponsor

    Hi Joan,

    This will be street wide very soon. If you are using LST with the API right now, you can only avoid the high NYSE fees by sticking to Nasdaq only. Their fees are very low. The Sterling API fees will be the same because we own them both, and we have been audited by the NYSE. It will hit everyone by VERY soon.
  3. wintergasp


    I believed last time I checked ICE's balance sheet, they made (slightly) more money from data fees and whatever special fees you want than by the 1$ or 1.5$ of exchange fee they charge.

    So you should expect to see this continue to rise
  4. Robert Morse

    Robert Morse Sponsor

    I agree, but it's not that nondisplay fees are rising, it's that now they're enforcing them on APIs.
  5. wintergasp


    I meant the idea that more fees unrelated to executions "per contract" will exist in the future / be enforced on more things / be more expensive.
    Robert Morse likes this.
  6. Joan


    So, Robert, is NYSE enforcing you to increase your user API fees? Would it be possible that platform vendors absorb these fees and keep their user fees intact?

    So a small trader using TWS connected to Excel is going to get hit by these absurd fees?
    Last edited: Oct 6, 2016
  7. Robert Morse

    Robert Morse Sponsor

    These fees are coming directly from the NYSE. They are making us disclose who our API users are. For those being directly billed by the NYSE, they're going to send out questionnaires to see who is non display and who is not.
  8. kmiklas


    I feel your pain bro. I wrote a long post about this...

    I've heard it's because they're pointing the finger at HS/HFT as the cause of the 2008 crash, and want to discourage it, but personally I believe that they put these fees in place to stop people like you and me from gaining an edge.

    It's not going to work though, because the people that they're stepping on are innovative computer programmers. We will innovate around this roadblock. It's remarkably similar to the situation back in the 1980's/90's when the NYSE was in control, and Josh Levine was building Island. He hit almost exactly the same roadblocks.

    For example, I've started working on a building a new exchange to sidestep this nonsense. There, real-time market data, deep book data, and order queue data will all be free. Let me know if you want to help.
    Last edited: Oct 6, 2016
    akshay12, TraDaToR and Occam like this.
  9. Robert Morse

    Robert Morse Sponsor

    You can always switch to futures. Non-display are more like $170/exchange.
    kmiklas likes this.
  10. wintergasp


    How will you pay the staff? insurances ? servers ? offices ? 1$ per contract or whatever the price is on futures will barely cover your servers and maybe a little bit of technology, but you still have to build robust software, regulatory cost etc... etc...

    alternatively, you don't need to deal through the exchanges. there are many many many OTC providers and dark pools, but you then lose all the advantages of a centralized market. And believe me, I've been an HFT market maker on FX which is decentralized.... you don't want to be on a decentralized market.
    #10     Oct 6, 2016
    dealmaker likes this.