This translates into a cap of $8.02 (26.72¢ X 30) for any trade over 30,000 shares. Under the previous pricing formula, large volume trades incurred disproportionately high regulation fees.
RS says the fee cap provides a more accurate, fair and equitable method of assessing the regulation fee on large trades. It will also result in significantly lower regulation fees for trades over 30,000 shares.
Previously a 100,000-share trade would have cost $26.72 (26.72¢ X 100) in regulation fees. With the introduction of a cap, this trade will be billed at the 30,000-share maximum of $8.02, a 70% decrease in this example.
The changes to the billing system will first appear on the August invoice that is distributed in early September. The cap will be applied retroactively as of March 1, and where applicable, market participants will receive a credit with the August invoice.
RS says that it will continue to pursue cost-saving opportunities to reduce regulation fees.