Exchange group Euronext says plans fee increases for 2014

LONDON Wed Dec 18, 2013 12:59pm EST

LONDON Dec 18 (Reuters) - NYSE Euronext will increase some trading fees on its European markets in 2014 as it seeks to keep in step with rivals and protect revenues in lower trading volumes.

NYSE Euronext, which operates exchanges in Paris, Amsterdam, Brussels, London and Lisbon, said in a statement it would introduce "a small number of fee increases" following a review of its Euronext business.

"The changes are designed to drive liquidity; improve market quality; and to align our tariffs with recent market trends and industry practices," Lee Hodgkinson, head of sales and client coverage for Europe, the Middle East and Africa and Asia Pacific at NYSE Euronext said in an emailed statement.

Hodgkinson said the increases would be "rebalanced" by an incentive scheme to attract large orders in cash equities, liquidity schemes for additional liquid shares, exchange-traded funds and commodities, and more than 20 percent lower overall average fees in equity options.

NYSE Euronext declined to give any more details on the changes.

Euronext's decision follows similar moves by rival exchanges which have raised fees to boost revenue and offset slumping trading volumes as well as higher technology and regulatory compliance costs.

The price hikes, however, come as brokers are being squeezed as greater competition forces commissions lower.

The London Stock Exchange upped its fees for real-time data services in July and said in October they will increase again at the start of 2014.

Last month U.S. exchange CME Group hiked its transaction fees for nearly all its major products for the first time in four years. Following an outcry from customers, it may consider a tweak to the changes, one broker said.

NYSE Euronext merged with Atlanta-based IntercontinentalExchange in a $10 billion-plus deal earlier this year. ICE plans to spin off Euronext through a initial public offering in 2014.