Alpha Group will implement a new trading fee structure as of June 1, the Alternative Trading System said Wednesday.

For securities with a value greater than or equal to $1 and less than $5, active fees will be reduced from 35 mils per share to 25 mils per share and passive fee rebates will be decreased from 31 mil per share to 21 mils per share.

The proposed fee reduction positions Alpha as the market with the lowest active fees in securities with a value greater than or equal to $ 1 and less than $5 — a segment that represents about 20% of the overall volume traded in Canada across all Canadian marketplaces.

“For a dealer facing a majority of ‘taker’ trades, this new fee schedule represents close to 30% savings on these trades,” Alpha said in a release.

“This new fee schedule combined with free opening trades, full rebates on iceberg orders and the lowest active/passive ratio for dealers posting their resting orders on Alpha, means that Alpha is the trading venue that stands for liquidity at the lowest cost,” it added.

“Now that our volume, our order to trade ratio and our average trade size have demonstrated Alpha’s unparalleled liquidity, it was time again to address the cost issue,” noted Jos Schmitt, CEO of Alpha Group.

“And in line with our mantra – For the Industry, By the Industry – these new benefits are available to all dealers without any restrictions,” he concluded.

The new trading fee structure is subject to regulatory approval.

Alpha Group was established by nine of Canada’s leading financial institutions in May 2007.

IE