BATS recently unveiled a new flat-pricing model for its primary listings business. The plan includes free listings for companies whose stock or exchange-traded product trades more than 2 million shares a day.
The initial fee, which is waived for transfers, will be $100,000 for Corporate Tier I stocks, $50,000 for Corporate Tier II stocks and $10,000 for ETPs. Listings that trade less than 2 million shares a day will also be subject to an annual fee of $35,000 for Tier I stocks, $20,000 for Tier II stocks and $35,000 for ETPs.
Unlike most traditional pricing models, BATS’ listing fees are not based on a company’s shares outstanding and the exchange does not charge for the listing of additional shares.
Joe Ratterman, chairman and chief executive officer of BATS, said in a statement the exchange is focused on offering “out of the box” programs and pricing.
“Our aggressive pricing and innovative market-maker program will appeal to small and mid-cap companies looking to grow, while larger companies will be attracted to our no-fee listing model,” Ratterman said.
The announcement came on the heels of BATS rolling out its competitive liquidity provider program. The CLP program, which was designed for the exchange’s primary listings business, is a rewards-based program designed to incent market makers to quote tighter spreads and offer increased liquidity. The CLP program is designed to particularly benefit small and mid-cap companies that are often challenged by a lack of liquidity.
