There it is. Tom announced their trading fees for market makers and retail flow. It’s cheaper in Sweden. But not that much. Note the market maker fees will probably be a little lower when acting as liquidity provider. The current rate for liquidity providers at Euronext is 5 cent. No information yet on the fees for Holland Clearing House.

Most eye catching are the free fall in prices charged to brokers. They have been paying outrageous prices for years. Question remains whether retail investors will benefit from this. They should. Lower broker fees will attract more financial institutions to connect. This is the main competitive battlefield.

A market without liquidity in terms of size and depth is useless. Therefore market makers will be lured by lower fees. All of ‘m will pay 4 cent per option, compared with 5 at Euronext. That’s not a sensational price cut, but it’s reasonable TOM will charge less to quoting liquidity providers. Hence the statement 4 cent is the maximum fee.

Euronext raised the price for non-quoting market makers, but TOM doesn’t see the point bullying the small ones. The Premium Based Tick Size fees used to be 4 cent and will be raised to 5 cent per December 1 (these are the cheap far out of the money options).

Maximum fees per order.

One more thing. Euronext raised the maximum fee for (prof) transactions to 200 euro in stock options and 500 euro for index options (and uncapped for index options traded through the screens). Up from 40 euro, that isn’t pocket money.  TOM decided to set their maximum fee per order at 40 euro. They must have been pleasantly surprised by the new Euronext prices.

  • More details on the TOM fees here (pdf)
  • Details on the new Euronext fees here (pdf)