Big Board Price Hike Angers Small Brokers.

Traders, September, 2006

Small- and mid-sized members of the New York Stock Exchange are livid over the Big Board's recent price increases.

Larger firms, such as RBC Capital Markets and Jefferies Execution Services, are joining with smaller independent floor brokers, such as Prime Executions and McKeon Brothers, to vent their anger over the New York's August 1 price hike.

"The amount of the increase is unprecedented," Jefferies' attorney told Big Board execs John Thain and Cathy Kinney in a letter, "and appears inequitable, discriminatory, anticompetitive and inconsistent with the mandates of the Securities Exchange Act of 1934."

Jefferies complained that the new fee structure would result in a 17-fold, or $8.5 million, increase in its annual NYSE trading expenses....

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