NEX Markets has raised brokerage on its Select and Direct platforms following last year’s release of NEX Analytics and what Tim Cartledge, head of FX at NEX Markets, terms, “a range of improvements” to the platform including better aggregation logic and sweeping capabilities.
Notification of the price rise is understood to be going out in Europe this week with the rise to come into effect in April, it will also apply in Asia and the Americas in coming months as the new functionality is embedded in those regions.
“We have done a lot of things to improve the platform and we know we have because our customers are telling us they are seeing improvements, both LPs and LCs, which is what we set out to achieve,” says Cartledge. “A big part of the work was getting rid of behaviour that was unsuitable to an environment in which people wanted to internalise and risk warehouse.
“We have made the trading environment demonstrably better over the past year, and therefore we feel it is appropriate to recoup part of our investment in improving the platform.
Under the new structure brokerage for manual liquidity providers will rise to $3.85 from $3.00 and for API LPs it will rise to $3.25 from $2.00 on Select and the Sweep functionality and $3.00 on a single ticket trade.
Brokerage for liquidity consumers will be largely unchanged, with API LCs paying nothing for a Sweep or a single ticket trade and $2 to trade on Select, however NEX has introduced a $500 monthly fee for participants who trade less than $500 million per month in volume.
Another change is the introduction of a brokerage for manual traders sweeping the book. These traders will still pay $2 on Select and nothing for a single ticket, but if they sweep the book a fee of $0.75 will be applied.
“We were careful to maintain our brokerage levels for manual traders dealing in full amount or on Select,” explains Cartledge. “However they will now pay a small fee for sweeping better aggregated liquidity.”
NEX is confident it can raise prices in what remains a very competitive market thanks to the roll out of its NEX Quant Analytics package late last year. “We have gone from being the cheapest on the street to the middle of the pack in terms of brokerage,” Cartledge suggests. “But we can go into conversations with our clients supported by empirical data that shows we have improved the trading experience by something like $15 per million, split between LPs retaining more of the spread and LCs accessing cheaper liquidity.”