LONDON, Jan 31 (Reuters) - Eurex Clearing, the clearing unit
of Deutsche Boerse (DB1Gn.DE: Quote, Profile, Research) on Thursday said it is cutting its
fixed clearing fees to facilitate algorithmic trading.
The clearing house announced that fees for clearing equities
on its main order book and the trading floor will be cut by 25
percent to 0.30 euros ($0.20) per order, with effect from April
1.
The maximum fee per order is to be reduced by 0.10 euro to
6.00 euros, while the volume-dependent clearing fee remains
unchanged at 0.0015 percent of the order value.
“Lowering the fees addresses the continuing decline in
average order size in algorithmic trading. Eurex Clearing is
thereby offering an incentive for the continued growth of
particularly price-sensitive clearing activities,” it said in a
statement.
Investment banks and fund managers are using computer
programmes to automate the timing, price and quantity of orders
to manage market impacts and to implement their investment
strategies.
Algorithmic trading makes up 60 percent of all orders traded
on the Frankfurt exchange.
