ICE Proposes Dropping Fee for Trading Stocks: WSJ

Markets Reuters

Intercontinental Exchange Inc is proposing a trade-off between exchanges and brokers that would include cutting fees for trading stocks, the Wall Street Journal reported, citing people familiar with the matter.

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The New York Stock Exchange would drop the fee for trading stocks at its exchanges to 5 cents per 100 shares from 30 cents, the Journal said, citing a draft letter being circulated among large banks and investment firms. 

Banks, in exchange, would accept a rule known as "trade at" that would give more precedence to the stock exchanges, except for transactions involving large blocks of stock and retail investors, the Journal said.

A trade-at rule would mandate that stock trades take place on exchanges unless private venues, such as dark pools, offered a significant price improvement.

Credit Suisse Group AG, which operates the largest dark pool, has agreed to endorse the proposal, the Journal reported.

ICE acquired NYSE Euronext Inc last year for $8.2 billion and made it a division of ICE called NYSE Group.

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ICE and Credit Suisse declined comment.

(Reporting by Neha Dimri in Bengaluru; Editing by Joyjeet Das)