As a key element of its strategic response to MiFID, the ISE has positioned itself as one of the most price competitive, transparent and efficient exchange operators in Europe. It has introduced a radical new pricing policy which provides significant cost savings to trading member firms. The pricing policy is clear and uncomplicated and provides strong incentives to further encourage trading volume growth with progressive fee reductions for firms trading on ISE Xetra®.
The main aspects are summarised below with supporting detail provided in the following table:
- Sharply reduced, flat order book fees which deliver straightforward and low cost upfront order execution fees along with significant volume incentives.
- Very low, flat market maker quote execution fees to encourage liquidity providers.
- Incentives for algorithmic trading flow to ISE Xetra®.
- Hugely reduced, flat fees per OTC trade report for ISE and other EU Regulated Market securities (the ISE is now the most competitive EU Exchange in this regard).
- Introduction of the concept of a trade reporting (only) member firm.
- Reduced annual membership fees with one low flat fee applied to all equity trading member firms.
- No admission fees for new equity trading member firms.
The ISE continues to differentiate itself on cost from other market operators by choosing to charge trading member firms a flat fee per executed order or quote, regardless of the monetary value of the transaction, rather than a fee per execution (fill).
In addition the ISE does not charge order management fees, or any other execution or other fees in addition to those listed below, to trading member firms. This means that an order execution fee is payable only when an order, or part thereof, is executed and that no charges are payable until execution on the order book commences.
Market makers on ISE Xetra® are not charged any service fees or per security registration fees making the ISE a very low cost trading venue for liquidity providers.
Any trading membership enquiries should be directed to firstname.lastname@example.org.
|ISE Pricing Structure||Fees to ISE Xetra® Trading Members|
|OTC trade reports||€0.05 (total fee per trade report)*|
|Order book executions:|| |
|0 – 1,000 orders p.m.||€1.50 **|
|1,000 – 2,000||€1.25|
|2,000 – 5,000||€1.00|
|5,000 – 7,000||€0.50|
|7,000 – 10,000||€0.40|
|10,000 – 20,000||€0.30|
| || |
|Market maker quote executions||€0.25 (flat)|
|Algorithmic trading|| |
|0 – 5,000 orders p.m.||€0.75 ***|
|5,000 – 7,000||€0.50|
|7,000 – 10,000||€0.35|
| || |
|Annual membership fee||€25,000 p.a.|
|Trade reporting membership||€1,000 p.a. ****|
* Member firms will be charged a total of €0.05 per trade report for OTC trades in ISE instruments and for off-exchange trades in non-ISE MiFID instruments (i.e. non-ISE EU Regulated Market securities).
** The revised flat fees per executed order are reduced for the orders in excess of each threshold per month (e.g. a firm with 5,000 order book executions in a given month would pay €5,750 in order book fees i.e. (1,000*€1.50)+(1,000*€1.25)+(3,000*€1.00) and has an average cost per order book execution of €1.15).
*** The flat fees per executed algorithmic order are also reduced for the orders in excess of each threshold per month (e.g. a firm with 15,000 algorithmic order book executions in a given month would pay €7,050 in order book fees i.e. (5,000*€0.75)+(2,000*€0.50)+(3,000*€0.35)+(5,000*€0.25) and has an average cost per order book execution of €0.47). This equates to a discount of circa 25% for an algorithmic trading firm at this level versus normal order book fees.
**** Trade reporting (only) member firms will pay an annual charge of €1,000 and will gain access to the flat €0.05 fee per trade report for off-exchange trades in non-ISE EU Regulated Market securities in accordance with the ISE’s MiFID Post-trade Transparency Service. More information on this offering is available here .
Algorithmic Trading Firms wishing to gain access to the reduced order execution fees for algorithmic trading flow must submit a signed version of the Automated Trading Programme Agreement and of the Application for the Approval of an ATP User-ID form to the ISE. Both documents are available for download below.
Connection Fees The level of connection fees paid by a trading member firm for connection to the ISE Xetra® platform depends on the type of connection sought by the member firm as well as the location of the member firm. For more details regarding the connection fees please click here.
Clearing and Settlement Fees The ISE has outsourced the provision of its clearing and settlement facilities to Eurex Clearing AG (Eurex) and Euroclear UK & Ireland (CREST) respectively. Full details of the fees charged by Eurex can be found by clicking here while details of the CREST charges may be found by clicking here. The ISE does not charge any clearing and settlement fees in addition to those levied by Eurex and CREST.