London Stock Exchange Group today announced a new, simplified fee structure for trading on its UK order books. The new structure, to be introduced from 1 September, will deliver benefits to a broad cross section of the Exchange’s diverse customer base.

In particular, the new price list will:

Xavier Rolet, Chief Executive of London Stock Exchange Group, said:

“We aim to ensure that our pricing evolves to meet the needs of customers. The structure announced today will offer new incentives from which a broader range of firms can benefit, and should help to encourage a return to the long-term trend of volume growth on our markets. There will also be savings for trading in small cap securities, where liquidity has been most affected by the financial crisis.”
The Group expects the new tariff to drive growth in trading. For instance, applying the new tariff to the trading activity between January and March 2009, an additional £3 million in aggregate trading fee benefits would have accrued to member firms.

Outline of new tariff structure:

Value Traded 1,2 Bps Charge
First £2.5 Bn 0.45bps
Next £2.5 Bn 0.40bps
Next £5 Bn 0.30bps
All subsequent value traded 0.20bps
SETS Internaliser 0.10bps
Registered Market Makers in Small Company Securities 3 0.20bps

1. All charged trades subject to a minimum charge of 10p per side
2. 0.25 bps surcharge on value traded aggressively in excess of 70% of value traded
3. Includes FTSE Small Caps, AIM, International Bulletin Board, SETSqx, SET3, Exchange Traded Funds, Exchange Traded Commodities, Covered Warrants and Listed Structured Products