Everything about Nyse Arca totally explained
NYSE Arca, previously known as
ArcaEx, an abbreviation of
Archipelago Exchange, is a
securities exchange on which both stocks and options are traded. It is owned by
NYSE Euronext, which merged with Archipelago Holdings in a
reverse merger on
2006-02-27.
Market Share
As of 1 March 2007, NYSE Arca is the second largest
Electronic Communication Network in terms of shares traded. Approximately one out of every six shares traded on the American financial markets is traded on the system. For
New York Stock Exchange-listed securities or
Tape A, it accounts for just over 10% of the shares traded. For NASDAQ-listed securities, NYSE Arca accounts for approximately 20% of the trading volume. For
exchange-traded funds, NYSE Arca accounts for 30-40% of the traded volume.
Fees
NYSE Arca's liquidity fee/rebate structure resembles that of other
electronic communication networks. In late 2006, it was the first one to offer NASDAQ-style fees on
New York Stock Exchange-listed securities, a move that was soon copied by NASDAQ and other
electronic communication networks. NYSE Arca charges traders that remove liquidity from the Arca-book $3.00 per 1,000 shares. Traders that add liquidity receive a $2.00 rebate per 1,000 shares. Traders that route orders out of the NYSE Arca system are charged $1.00 per 1,000 shares for
Tape A securities and $4.00 per 1,000 shares for other securities.
Further Information
Get more info on 'Nyse Arca'.
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