The London Stock Exchange has announced a fundamental shift in its tariff structure, cutting some fees and introducing incentives for liquidity providers in a bid to attract the fast-growing community of algorithmic traders.

The decision, effective on September 1, marks a recognition that the battle looming with rival platforms such as Turquoise and BATS Trading is likely to be won or lost, in large part, by the LSE’s ability to attract a new breed of electronic trader.