Under what has cumbersomely been termed the Larger Size Market Maker Scheme, the exchange effectively gives a fee rebate of 50% to those that qualify as larger market makers trading shares outside the FTSE 350. The scheme builds on the SETSmm order book, a previous effort to boost the liquidity of smaller-cap stocks.
The LSE, however, claims that the scheme is not designed to address the discontent about fees that exists among market participants. Instead it says that a lot of thought has gone into improving the image of the market makers. “The Larger Size Market Makers didn’t simply want fee incentives,...
