NYSE to Alter Some Fees for Stock Trades
Wednesday September 12, 10:30 am ET
By Tim Paradis, AP Business Writer
NYSE to Alter Some Fees for Stock Trades As Competition Mounts
NEW YORK (AP) -- NYSE Euronext will alter some of the fees it charges brokers for trading on the New York Stock Exchange and the NYSE Arca electronic exchange in the face of mounting global competition that is putting pressure on fees.
Duncan L. Niederauer, NYSE Euronext president and co-chief operating officer, said the moves are intended to maintain the exchange's No. 1 position in trading in NYSE-listed securities and to boost the amount of Nasdaq-listed securities it trades on NYSE Arca.
Also reflecting the competitive environment in which all exchanges are competing, the NYSE said an expected consolidation of its floor trading operations will continue. Niederauer predicted that by Nov. 1, the exchange should consolidate its four trading floors down to two, shutting two smaller rooms and moving everyone into the two largest rooms. A year ago, the exchange had five trading rooms. In recent years, specialist firms and brokerages have cut jobs as electronic trading increased, in some cases bypassing exchange floors.
"It should make the floor considerably more efficient," he said in a presentation at the Lehman Brothers 5th Annual Financial Services Conference.
In addition to reducing the space it uses, the exchange is restructuring its fees to try to maintain and attract business. The changes are expected to take place Oct. 1.
For NYSE-listed securities, the company is raising the rebate on NYSE Arca to 25 cents from 20 cents per 100 shares for all customers. And for trading in Nasdaq-listed securities on NYSE Arca, the exchange will reduce some of its fees in order to attract more trading in this area.
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