Attain's 0.2-Cent Takeout Fee on Nasdaq
By Isabelle Clary, Markets Editor
June 25, 2004 - Attain ECN, a subsidiary of Domestic Securities, will introduce a flat takeout fee of 0.2 cent per share on Nasdaq beginning on July 1, in a bid to snatch market share away from its competitors.
"It's all about price," said Domestic Securities EVP Larry King. "Our customers have been asking us to lower their costs and we've done just that. We want to be the lowest-cost ECN provider on the Street, with $2 per thousand."
Attain, which quotes on SuperMontage under the market participant ID "NOCI," is not combining the rock-bottom takeout fee with any rebate for those who add liquidity to its ECN book. The flat $2-per 1,000 shares pricing structure is not pegged to volume thresholds either and applies across the board to all market participants.
"It's a simple, one tier price structure for anyone who comes to us, regardless of the volume they transact," King also said, adding that the fee cut is part of Domestic's strategy to revamp NOCI's value proposition and gain market share.
King is confident the strategy will work and could boost Attain's market share, currently in single digits, to 15 percent of Nasdaq volume before yearend.
The new low fees do not apply to Attain's other ECN book on NASD's ADF (alternative display facility), with the market participant ID "ATTN."
Attain started running two books, one on SuperMontage and the other on the ADF, last February because it objected at first to Nasdaq's policy to cap ECN fees at $3 per 1,000 shares--which the ECN now undercuts by 30 percent. |
